I have been trying to find something meaningful to say about the Id Software layoffs.
My “Microsoft will probably be a good steward of the brand” statement isn’t aging well, and this is certainly going to dampen the mood of the founder reunion at QuakeCon next month.
I’m saddened, but I can’t muster anger or outrage over it. I don’t have access to the books, but I suspect that Id Software was a marginal business from Microsoft’s perspective. I believe the reports that Minecraft revenues have been carrying several other studios.
To continue being produced long term, games need to succeed, not just be beloved.
Games are competing with every other option for spending your leisure time and money, and the competition is brutal.
You can’t rule out the possibility that executives are idiots, but that shouldn’t be your default belief. I don’t think there is any obvious path that would have doubled the revenue from Id games.
Could they have gotten more with a different pricing strategy?
Could they have created more things for fans to buy?
Could they have cost effectively marketed in a way that reached more players that would have loved and bought the games?
Could they have changed the game designs and broadened the appeal to more players without alienating existing ones?
Could they have produced the games at a lower cost, faster or cheaper?
I really don’t know.
The game isn’t over yet, and I hope the studio rallies through.
With all due respect to this guy, pointing out there are more digital only games on PS5 vs games that have both a digital and physical release and calling it an "availability bias" doesn't make much sense here.
The reason there are more digital only games than physical + digital games is because a lot of games simply don't justify the cost of a physical release anymore.
The truth is the ability to release digitally has expanded the market significantly to the point there are more games releasing on console than any prior generation and Sony now earns more from digital add on content like DLC than it does from digital or physical full game sales.
This is just where the spend is shifting and has been for years. Even if you just look at games with both a physical and digital release, the data still shows a higher digital skew. Looking at certain games that are bundled (Bundles with a digital game still count as physical sales to Sony) or UK first week sales (When physical is highest and then declines in the following weeks) misses the point.
Yes, there is a physical market that exists and even I've said previously I was surprised that Sony made the announcement this year because I personally think 70m unit sales of physical PlayStation games in FY2025 shows there is enough of a market to support them for a few more years.
The position that Sony is taking is that losing any die-hard physical only fan in 2028 won't have an impact on PlayStation earnings, and the data does back them up on that. Right now, given the current macroeconomic environment, Sony is focusing on players that are price insensitive, in favor of digital convenience, and willing to spend more than they were last year on games vs bringing new players in.
At the end end of the day, there is no physical gamer majority. Not to say people shouldn't ask for physical games to return, but that skewing the data to make physical look bigger than it is just won't work as an argument.
The real argument needs to be around ownership, resale, preservation, and consumer rights regardless of whether it's a physical game or digital game. You have significantly more rights for physical games than digital games at this point, and that's something that players and regulators should be pointing out and addressing.
We heard you. And we agree.
In light of recent developments in physical media, GitHub is proud to announce that you can now obtain your public repo on CD-ROM.
Keep it. Lend it to friends. Pass it on to your children.
Your code is physically yours, forever. Until you lose it, let's be real.
Order yours today.
https://t.co/z041pdMH7h
We just shared with our team the realities we need to navigate as we work to reset the XBOX business. We won't succeed by hiding hard truths, nor will we succeed by doing the same thing and expecting different results. See the note here: https://t.co/IahtBNzwnR