Analytic Dreamz: Notorious Mass Effect - "PLAYSTATION PRESIDENT & CEO JIM RYAN SAYS THAT PUBLISHERS DON’T LIKE XBOX GAME PASS”

Episode Date: October 18, 2023

Linktree: https://linktr.ee/AnalyticIn this segment, we discuss Sony Interactive Entertainment/PlayStation President & CEO Jim Ryan's recent comments on Game Pass. Ryan claims that publishers unanimously do not like Game Pass because it is "value destructive," and that he was expecting a larger number of subscribers given all the money Microsoft has spent. He also reiterates that Sony believes PlayStation Plus is a meaningful subscription service.Join us as we analyze Ryan's comments and their implications for the future of the gaming industry. We'll discuss the following topics:Why do publishers supposedly not like Game Pass?Is PlayStation Plus really a meaningful subscription service?What does Ryan's skepticism of Game Pass mean for the future of the service?What does it mean for the future of the gaming industry as a whole?Whether you're a PlayStation fan, an Xbox fan, or just interested in the future of gaming, this segment is for you. Tune in to hear our analysis of Jim Ryan's comments and their implications for the gaming industry.Privacy & Opt-Out: https://redcircle.com/privacy

I do want to start off by saying that with this podcast being the notorious mass effect, it means that I love to cover gaming and hip-hop. One thing I came to find out was CEOs in the video game community beef more than rappers do. Like as far as CEO beef, I believe, in my personal opinion, is way more entertaining than any rapper beef that currently exists in the modern day. And with that being said, let's get into our segment, which is PlayStation CEO Jim Ryan and his comments on the Xbox game passed.

Now, obviously, this man retired, but we're not going to get to that point just yet, because guess what? If you're working a job for a while and right before you retire, you just take one last shot, at the opposition like a big shot so it's like this is like some crash out mission against your opposition right before you retire you got to respect it like for jim ryan to

spin the block figuratively on phil spencer and trash his vision one last time before retiring you just have to respect it man you got to respect it but anyways in all seriousness jim ryan called the Xbox game pass, value destructive, which as a music connoisseur, I have a pretty interesting perspective on because streaming for musicians cut their profits in a way that I don't think they would have projected. Now, hear me out. Physical copies obviously make artists way more money than you press and play on whatever DSP you use to listen to their music.

That's why artists always say either purchase my album, download my album, but then after those two options, they always say stream because stream is the least amount, as far as revenue. That's the least amount of revenue they get. Artists don't make money from people streaming their music. They make money from purchases of albums,

purchases of merch, purchases of tickets for their live performance, So whenever all the music in the world is under a subscription model, it lessens the value for the field. So I understand and I honestly agree where Jim Ryan is coming to with the value destructive point. I believe this was literally a reason why WGA went on strike. because if you think about it, you're not going to tell me 50. That's not even. I don't know how many people work on a movie. Hold on.

Let's look that up. On average, how many people work on a movie? Because for music, obviously, you can have your producer, rapper. You may get some other people, but for the most part, it doesn't take that many people to make a track, which is why people are like, hey, stream is not that bad. But for movies, right? it takes about 500 people to work on a movie and obviously it can vary depending on the scope and size of the film but for video games right let's do video games let's not even do video games because PlayStation is in the

business of triple a video games let's do triple a video games which you if you don't know that's like the biggest studio the biggest development team size you can have I believe that's how you quantified as AAA. Anyways, because I'm getting into a point with this, because I wanted to start off basically saying I acknowledge and I feel like his point is on a nose. But then this point is why,

no, actually, no, this adds on to my like agree, agreeance. Is that a word? I don't think so. Anyways, I agree with what he's saying that this is my other statement to back that up. Around 100 to 200 people work on a AAA video game.

So when it comes to music, it already is like one to two people, maybe more for a single song. Like you hear rappers like Little Wayne making like 50 songs in the studio in one night, right? You're not making 50 games, 50 nothing. No movie, video game, nothing in one night. Like that's just not possible, not happening ever. So basically the scope to the size of the team you need to make a video game and to make movies. is way more than you need to make music, right? But that's not the discussion.

I basically bring that up to say this is even more egregious, which is with them going to streaming because of how many people it takes. Like, people that music slide because they're like, it really doesn't take that much to make a single song or whatever. But for video games and movies, they're like, ain't no way. We put all this work just for you to put us under, 10 to $13 paywall amongst a variety of other movies. It's like our work is way more valuable than that.

So I get where Jim Ryan is coming from with the value destructive standpoint. And he also said that publishers, which is like EA and Somniac from software, like people who develop games, right? Well, no, I think that's development studios. Publishers is like EA. Publishers is like, I think Activision is a publisher. Basically the big dogs, right?

Um, who has like subsidiaries of, uh, game developers. They said that they, uh, well, Jim Ryan, CEO of PlayStation said that those publishers unanimously, well, he said publishers in general, so let me not be specific because that's incorrect. So publishers unanimously said that they do not like the game past because it's value destructive. So first he said is value destructive. Then he backed up his statement by saying that publishers also believe that it's value destructive. But he did not specify which publishers express these concerns. So it could be kept. He could just be saying that because I believe that

you should never believe in anonymous source. Like if it's such a, no, that's, I mean, that's too broad, right? Obviously, anonymous sources in some aspects is great because like, what if, you know, some violent is happening? But in the, in the lighthearted topics of, for example, if you watch sports, when they say anonymous GM came out and said, this player trash, you know, like sources like that, when that's anonymous, I don't believe it at all. I'm like, for lighthearted topics such as this and subjects such as this, you cannot be anonymous. and think your point is going to be taken seriously. So when Jim Ryan put his name on this and said his value destructive,

I agree. When he said publishers and he didn't specify, I'm like, I don't know if you're really telling the truth with, like, because what if he's just talking about publisher that's falling off? Like, yeah, I'm going to agree with you just to, you know, like just to boost you up and hopefully you put my game on your platform.

But anyways, Xbox head Phil Spencer reported to the UK competition, and markets authority that game passed because you know of course with ceo beef they got to shoot at each other and when they get shot they shoot him back when he gets shot i'm shooting right back like it's a never-ending battle right xbox head phil spencer reported to the ukk competition and markets authority that game pass led to a decline in the market value what the game pass led to a decline in the market value oh is this when it was getting sued that's interesting so he basically agreeing with the uh PlayStation CEO I mean there's no way that stream you

there's no way you're gonna tell me that streaming is good for the field there's just no way there's too many people that work on video games $13 pay wall to play any game you want lessons the the pay for everybody making that video game that's just something I believe is a fact obviously people be like oh well you can go buy the game if you want to support it well i'm also not stupid if i'm a if i can purchase a product for 13 dollars why would i purchase it for 70 you know anyways let's get back to it so i remember when um xbox was acquiring activision PlayStation was like oh it's a monopoly and all that type of stuff and then that's when reports like phil spencer was coming out basically saying the game

passed led to the decline basically saying they broke and they need activation and we ain't no monopoly right so i I do remember when that stuff started coming out. Like Microsoft was copping, please to get Activision or to acquire Activision. They was like, man, we trash. Like, please have us Activision. Like, we ain't nothing close to a monopoly. Like, honestly, our game passed led to a decline in market value. So that's how they came about.

Anyways, Microsoft as a company, though, of course, is doing phenomenal. Like, I mean, they sell other products besides gaming. Like, gaming loses them money. I think everything else makes them a surplus of money because they were, reported that they had $3 billion in profits from the subscription service in 2022. And they also increased the price for Game Pass in July 2023, but only for the console version, because they probably realized that we're not making no money, we lose the money. Might as well raise the subscription price because it just makes sense.

We're paying way too much than we're making. Jim Ryan also announced, so after he, so in conclusion, after Jim Ryan spun the block, Like there was nowhere to part. Shout out to Twin was Savage. And shot at CEO Phil Spencer in a way that he could not come back from, basically seeing that the game pads is very destructive to the value of video games. Phil Spencer had no response. So I don't know if that was the white flag that he needed to just send off.

But after that shot, he basically was like Thanos at the end of Infinity War. and just looking into the sunset because now it came out that he announced his retirement from Sony Interactive, of course, in March 2024 after almost 30 years. That's longer than I've been alive. This man been working for a company for almost 30 years with the PlayStation business. So his successor is, he wrote, I'm not trying to be funny. I can't pronounce this. Tococchi Hiroki

Totochi Huffla said that right I'm so sorry if I mispronounce it I swear I'm not trying to be funny What else So he's gonna be Sony Group Corporation president Will assume the role of chairman

Of SIE Effective October 23 And serve as interim CEO of PlayStation starting April 24 Ryan also Well Jim Ryan also mentioned that it became increasingly challenging for him to reconcile living in Europe and working in North America.

I'm not laughing, but come on now. Why that man living in Europe? Y'all know why he living in Europe. You know what I mean? If it ain't tax evasion, I don't know what it is. Nah, let me chill. Let me chill. That's a lot to put on somebody.

But, hey, people live overseas for a reason. Shout out to the, to the, to the, to the, to the, to the, to the, to the, Jake Paul. So anyways, I don't know what he's doing. That man said, hey, I can't be over here. I think you have to live over there for like 140 to 200 days to be considered like a citizen, not a citizen, but for your taxes to be like the same as overseas taxes. I don't know. I'm not going to get into the scheme because people be playing the game.

And the game is to be sold, not told. And that is not what this segment is about. So anyways, at the end of day, PlayStation CEO spun a block on Microsoft CEO and after he completely demolished him, he decided it was time to retire. But in all seriousness, at the end of day, you know, they still respect each other as Microsoft's CEO, Phil Spencer, tweeted his appreciation for Jim Ryan and his contributions to the industry and wished him the best in his future endeavors. Yeah, all right.

So anyway, click my link to you in my bio. Let me know on one of my social media. is what do you think about PlayStation CEO spinning the block on the Xbox CEO and basically the Xbox CEO having no retort and actually having statements out there dignifying what

Jim Ryan said and do you think that the Xbox game pass is value destructive for the gaming industry?