Happy Monday!
Sometimes, when someone calls me a ‘video game journalist’, I will correct them. I’ll say, ‘well, more a video game business journalist’.
This isn’t because of some snobbery towards games journalism. It’s because after 20 years of doing this exact job, my brain has become twisted by it. Even when a game I love gets announced – like Resident Evil Veronica or the new Ocarina of Time remake - I’m immediately analysing commercial potential, the competitor landscape, distribution strategies… rather than gameplay features. I can’t help it. It’s a curse
And it’s not always to my benefit. Take last week’s interview with Amazon. In that interview, the company let slip that Tomb Raider Catalyst is scheduled for launch in 2028. The game was previously announced for 2027. I noticed it immediately. But I also didn’t feel it was much of a story. The game had a vague date anyway. It isn’t impacting TGB readers, is it? And is it a surprise? The Tomb Raider remake (Legacy of Atlantis) had been delayed out of 2026 and into 2027… and that likely had some impact on the next game. Does Amazon really want two Tomb Raiders in one year?
So, I didn’t run a story on it. It’s not even referenced in the newsletter. It’s a very brief, off-hand moment in a podcast. But, of course, the consumer media did spot it. And soon there were stories on all major websites about the Tomb Raider delay.
There’s a part of me that’s annoyed with myself. How much traffic did I miss out on by not running that as a standalone story? But then, that’s not what The Game Business is all about. I guess it’s nice that folk are paying that much attention.
The stories that got me most excited last week were all around game streaming. The Amazon chat was about its ambitions for its game streaming platform Luna, which can now be found within the Prime Video app. And just hours after that went out, Xbox announced it was experimenting with a new advertising-based business model related to its own streaming service.
So, let’s talk about that, shall we!
Can Xbox’s big advertising experiment make game streaming work this time?
In Brief: Xbox is testing a new business model for game streaming, where players can stream their game library for free with ads. The two-minutes of ads will appear before the game starts and run every hour. Previously, game streaming was limited to Xbox Game Pass subscribers.
What You Need To Know:
This test is for Xbox Insiders and is very much an experiment.
The premium subscription option via Game Pass remains.
The ads won’t interrupt gameplay, but sessions are limited to one hour in length.
The firm insists the ads should ‘create value’ and will be held to ‘the same quality bar as the content’.
Xbox Chief Strategy Officer Matthew Ball is intrigued by the advertising business model. He spoke with us about it in February before he joined Microsoft. We discussed it again after he joined last month.
In other game streaming news, Amazon has added its Luna streaming service to the Prime Video app. Now Prime members can stream games directly through Prime Video.
Both moves follow the launch of two big streaming games from Netflix: The horror story game Unhinged and the FIFA World Cup game.
My Take:
Occasionally you get moments where a bunch of similar(ish) stories come along at the same time.
Two weeks ago, we featured Netflix after it launched game streaming horror hit Unhinged. Then shortly after, Amazon popped in to announce it is further integrating its Luna game streaming platform into Prime Video. And just hours after that, Xbox announced it is experimenting with pre-roll ads for its own game streaming service.
Streaming is back in the conversation right now. But the big questions remain unanswered. Could it unlock new players and help video games with its growth problem? Can it offer a viable alternative for people who have been priced out of consoles?
Regular readers/listeners of The Game Business will have heard me say that ‘the things that will get video games back to growth are video games’. It’s not a distribution model, or a new form of monetization, or a new technology. You can have the best business strategy, but it amounts to nothing if you don’t have a hit game. And equally, you can have a questionable got-to-market plan, but that can be overcome by a special game or two (which is pretty much the story of Nintendo).
In my view, game streaming will only take off if there are games that people want to experience via it.
But these are unprecedented times. The rapidly rising cost of hardware components and the volatile political landscape, threatens the foundations of the industry (certainly the PC and console industry). What if gamers can’t afford the next consoles? Or can’t upgrade their gaming PCs?
I’m not convinced even a special game can persuade a large audience to buy a $1,000 PlayStation 6.
