It serves as a fourth macro-level trend that informs Sony’s subscription plans. The traditional economic model of console manufacturers has changed, too. If nothing else, it alleviates demand uncertainty and reduces the ups and downs of conventional releases.

Try as they might, offering players a monthly subscription in exchange for access to a content buffet makes more sense in the context of rising consumer prices. Sure enough, the games industry will try and charge $70 for a new release. Video games, after all, are largely paid for with disposable income. Third, now that looming inflation is starting to become a reality, consumer demand is unlikely to remain as strong as it has been. In November last year, Sony announced a partnership with TSMC to build a new semiconductor plant but production is not expected to begin until 2024. (TSMC), the world’s biggest contract chipmaker and a “barometer of global electronics demand,” announced that it cannot meet the demand for chipsets and that the cost of materials is rising sharply. On Wednesday this week, Taiwan Semiconductor Manufacturing Co. As one of the most costly components of its devices, the higher price point pushes down on margins. The shortage in chipsets is a second influence on Sony’s business. As a result, the cost of shipping has increased as has the cost of labor (think: truck drivers). Supply chains have been backed up for months. Following the surge in demand for interactive entertainment, it is still virtually impossible to buy a PlayStation 5. It makes physical boxes that need to be designed, built, distributed, and sold. Physical boxesįirst, it’s important to remember that Sony is a consumer electronics manufacturer. After a growth spurt during the pandemic, the economic outlook has started to change and industry leaders are looking to insulate themselves from the volatility that lies ahead. What’s really driving the push for subscriptions are the changes occurring in the broader ecosystem. It implies that Sony is, in effect, reacting, to Microsoft’s recent success. Because of their similarity in pricing, comparing Sony’s proposed PlayStation Plus Extra to Game Pass is an instinctual assessment. The key insight from analysts and observers is that we’re looking at Sony’s apparent move against competitor Microsoft’s Game Pass.

Succinctly, it plans to make three different packages available that range between $9.99 and $17.99, each offering a broader range of services and benefits. After hemorrhaging bits of news for months, Sony finally announced its game subscriptions.

Playstation answer to game pass