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Video game developers witness cash influx as tech firms vie for deals

Video game developers witness cash influx as tech firms vie for deals
Video game developers witness cash influx as tech firms vie for deals

Video game developers are reportedly waiting on an influx of money from some of the major global tech companies, such as Microsoft and Sony, as they compete to build a ‘Netflix for games’.

While the two aforementioned tech giants would be at the center of this contest, other, less gaming-centric enterprises, like Netflix, Apple, and Amazon, who have launched subscription services in order to attract gamers onto their platforms, are also expected to be in the mix.

Microsoft has invested more than four years developing its flagship, Xbox Game Pass, subscription service, which offers unlimited access to over 100 games that can be played on the Xbox family of consoles at a monthly fee of £10.99 ($14.33).

Last month, Sony unveiled plans to directly compete with Game Pass by introducing an array of changes to its PlayStation Plus service. The said service is expected to be launched with over 700 titles for a monthly fee of £13.49 ($17.59) or more than £99.99 ($129.98) per year, but predominantly focused on some of the older game titles.

Apart from these two, who manufacture their own gaming consoles, many other companies, including Apple and Amazon, have launched similar services.

The smartphone giant recently launched ‘Apple Arcade’ for Apple TV and iPhone, offering unlimited access to over 200 mobile games at £4.99 a month. The Luna service by Amazon, which is currently available in the US through early access, allows subscribers to stream 100 games at $5.99 a month.

Meanwhile, Netflix is also currently experimenting with a number of game offerings, which it is providing access to free of cost for subscribers of its content streaming services.

This new race to establish a gaming ecosystem has led to an influx of cash flow in the gaming sector.

In fact, Microsoft had been acquiring major game publishers such as Activision Blizzard, the firm behind Call of Duty and Warcraft, Bethesda, the developers of Skyrim, and many other independent studios since 2017.

On the other hand, Sony struggled to keep up, having a smaller market cap than its competitors, but recently merged with Bungie, developer of Destiny and Halo, this year.

Game developers, especially those who have stayed independent, welcomed this strategy, as they are paid a substantial sum upfront to offer their games on these services which greatly reduced the risk of launching a new title on digital storefronts and risk it being sunk without a trace.

There is now a hope that with the rise of such services, a change in focus from multimillion-dollar AAA titles to more indie titles will occur in the industry.

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About the author

Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for and a few other distinguished news platforms, pertaining to business and finance.