KATIE HOLT
LOUISE WOOLDRIDGE
31/03/2023 - KATIE HOLT, LOUISE WOOLDRIDGE
Multi-game subscription services, Feb 23: Game Pass expands but $1 offer dropped

Monthly round-up: Blacknut reveals partnership with All in! Games

From January 2023 to February 2023, 135 games were added to the services tracked and 75 were removed.

These are the main games subscription catalogue changes in February 2023:

  • At 25 titles, Blacknut added the most content to its catalogue in February 2023. As part of a recent partnership between the two companies, All in! Games added nine titles to the service, including Space Cows, Paradise Lost, and Red Wings: American Aces. The partnership is one of several Blacknut has established with publishers in recent months, and it will see titles brought to the company’s first-party service, as well as those operated with telecom partners (e.g., Partner TV and Telecom Italia). This introduces consumers in less-established markets to the publisher’s content and offers incremental revenue.
  • Covered in another insight here, Amazon Luna merged the Family and Retro channels into the Luna+ channel in December 2022. Since the integration, the service has dropped 56 titles in 2023: 30 in January and 26 in February. Across the two months, Luna+ removed 27 titles that were originally part of the Family channel, representing over half of the channel’s catalogue in December 2022. This suggests that Amazon is making a strategic decision to move away from family-based content, due to lower-than-expected uptake This renewed product strategy was followed by the service expanding into three new markets: Germany, Canada, and the UK, where it will likely be hoping to attract users of the now-defunct Google Stadia.
  • In February 2023, 12 titles first released in 2023 were added to the services tracked. Four of which were added by Netflix, including Narcos: Cartel Wars Unlimited (Netflix)an exclusive title based on the service’s series Narcos. A fundamental element of Netflix’s games strategy is offering content based on unique franchises and IP that it already owns – an approach that cannot be mirrored by many of its competitors. This strategy also aims to maintain users within the Netflix ecosystem.. For example, Netflix revealed that a significant portion of subscribers that played Too Hot to Handle: Love is a Game (Netflix) had never seen the series before but went on to watch the show after playing the game.

Microsoft expands PC Game Pass and the Friends and Family plan

Microsoft has launched its PC-focused multi-game subscription service PC Game Pass in 40 new countries, raising the total to 86 globally. PC Game Pass remains an important pillar of Microsoft’s Game Pass strategy as it can be launched in markets where there is no streaming offer and where console penetration is low. It is also a way for Microsoft to compete in the PC gaming space and is clearly differentiated from download storefronts such as Steam. However, Ampere estimates that this geographical expansion only adds exposure to around 10% more enthusiast PC gamers across those territories. Microsoft will be hoping it can convert more mainstream PC gamers to its subscription service. For more insight on this topic, see here.

Microsoft also announced that its Xbox Game Pass Ultimate Friends & Family plan has expanded to six new territories: Chile, Hungary, Israel, New Zealand, South Africa, and Sweden. Previously piloted in Colombia and Ireland, the plan includes access to Xbox Game Pass Ultimate for five people in one country at a reduced cost. In Ireland, a single Xbox Game Pass Ultimate subscription costs €12.99 per month, and the Family plan costs €21.99, saving around €43 per month if the service is used by all five members. The move to offer an affordable and shareable account – among users who do not necessarily live together - contrasts with efforts made by Netflix to crack down on account sharing outside a single household. With consumers having limited time to allocate to entertainment, games are competing with other forms of media for users’ attention more than ever. Factors like affordability and accessibility will play a significant role in where users choose to allocate their time. The plan is not yet available in major European or North American markets, with Microsoft choosing to focus on less-established markets for the moment, likely in a bid to boost uptake in under-represented territories.

At the same time, Microsoft has stopped its years-old $1 trial offer for Xbox Game Pass Ultimate and PC Game Pass. Although it was undoubtedly well-used and assisted the services in gaining a huge amount of traction, the offer was unsustainable. This news also comes shortly after an announcement that upcoming first-party games Redfall and Starfield will be more expensive than previous Xbox titles, at $69.99. As such, Microsoft is likely hoping to prevent players from accessing this premium content at such a low price, only to unsubscribe before the trial ends. However, Game Pass has now established itself among consumers, and new members may be more receptive to alternative marketing promotions – promotions that are more sustainable for the company.

Blacknut expands its availability with LG TVs and Saudi Telecom Company

In February 2023, Blacknut unveiled two new initiatives that will help its service reach a wider global audience. The company has entered a long-term strategic partnership with Saudi Telecom Company (STC) to promote its cloud gaming solution across the MENA region. Saudi Arabia has recently revealed plans to invest a massive $37.8bn in gaming and esports via the government-funded gaming conglomerate, The Savvy Gaming Group, seeking to become a major force in the global games industry. Likely as a result, STC is aiming to integrate gaming into its entertainment ecosystem. Blacknut offers a seamless cloud-based B2B2C solution and requires no additional hardware on behalf of the consumer. The service also expanded its presence on LG TVs, following a positive initial launch in December 2022. The service is now available in 36 territories, including all European countries, USA, Canada, Mexico, and Brazil.

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