Xbox Chief: We Need To Create a Netflix of Video Games

Phil Spencer, the man who heads up Microsoft’s Xbox division, says that if the video game sector is to grow both creatively and economically it needs to start thinking along the lines of a video-games-as-a-service subscription model. From a report: Over the last five years we’ve seen the emergence of a new concept: the video game as a service. What this means is the developer’s support for a new title doesn’t stop when it’s launched. They run multiplayer servers so that people can compete online; and they release extra downloadable content (DLC) in the form of new items, maps and storylines — sometimes free, but very often paid for. […] So being able to build and sustain a community around a single title takes the risk out of development. However, the costs of renting and running server networks and maintaining the matchmaking and lobby infrastructures make the model inaccessible for smaller teams. Should it be? “This is directly in line with what I think the next wave of innovation needs to be for us as a development platform,” says Spencer. His solution, it seems, is to make Microsoft’s Azure cloud computing platform more open to smaller studios, so they get access to a large global network of servers. “They don’t have to go buy a bunch of servers on their own and stick them under their desks and hope they get enough players to pay for them,” he says. […] Spencer feels that, from a creative standpoint, we need new types of narrative experience — but from a business standpoint, it’s getting harder and riskier to commit to those games. Is there an answer? Spencer thinks there is — and it comes from watching the success of original content made and distributed on modern TV services. “I’ve looked at things like Netflix and HBO, where great content has been created because there’s this subscription model. Shannon Loftis and I are thinking a lot about, well, could we put story-based games into the Xbox Game Pass business model because you have a subscription going? It would mean you wouldn’t have to deliver the whole game in one month; you could develop and deliver the game as it goes.”


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