Call of Duty Black Ops 6 subscription model set to shake up gaming | BBC News
Summary
TLDRActivision's blockbuster game 'Call of Duty' is undergoing a significant shift in its marketing strategy with the upcoming release of 'Black Ops 6'. Instead of the traditional one-time purchase, the game will be offered as part of a monthly subscription service, similar to Netflix, which is expected to cost around the same as a Netflix subscription. This move is seen as a pivotal moment for the gaming industry, as it marks the entry of a major franchise into the subscription model. The change could lead to increased in-game monetization opportunities, such as the sale of extra lives, and is part of a broader trend towards a 'Netflix of gaming' approach, which aims to reach larger audiences and monetize them through ongoing in-game purchases.
Takeaways
- 🎮 Call of Duty, a major gaming franchise with over 30 billion in lifetime sales, is transitioning to a subscription model.
- 🆕 The upcoming release, Black Ops 6, in October will be part of this new subscription service.
- 💰 Previously, gamers had to pay $70-$100 upfront to purchase a Call of Duty title; now they will pay a monthly fee similar to a Netflix subscription.
- 🔄 This change is significant as it represents a shift in the gaming industry's approach to monetization for blockbuster titles.
- 🎲 The subscription model includes the possibility of in-game purchases, such as extra lives, providing ongoing revenue streams.
- 🤔 Microsoft, which owns the game pass, is not expected to be making a loss with this model; they anticipate increased overall revenue.
- 🛍️ Gamers have the option to upgrade to premium editions of the game even if they have the standard game pass version.
- 📈 The gaming industry is exploring new ways to monetize audiences, with in-game purchases being a key strategy.
- 🎥 The concept of a 'Netflix for gaming' has been around for about a decade, but the industry is not expected to completely abandon premium sales like the music or video sectors.
- 🌐 Subscription services are seen as an opportunity to reach larger audiences and monetize them through in-game purchases, rather than a replacement for traditional sales.
- 🔮 The interview with Piers Harding from ampair analysis suggests that this move by Call of Duty could be a pivotal moment for the gaming industry's business models.
Q & A
What is the significant change in the marketing strategy for the Call of Duty franchise?
-The significant change is the introduction of a monthly subscription model, replacing the traditional one-time purchase of the game, which is a dramatic shift for such a large franchise.
When is the new version of Call of Duty, Black Ops 6, scheduled for release?
-Black Ops 6 is scheduled for release in October.
What is the estimated cost of the new Call of Duty subscription service compared to a Netflix subscription?
-The monthly subscription for Call of Duty is expected to cost around the same as a Netflix subscription.
How many people play Call of Duty monthly, and what does this represent for the gaming industry?
-Call of Duty is played by 25 million people every month, making its move to a subscription service a significant moment for the industry.
Which platforms will the new Call of Duty game pass be available on?
-The new Call of Duty game pass will be available on the Xbox platform and PC.
What is the historical sales figure for the Call of Duty franchise over its lifetime?
-The Call of Duty franchise has made sales of upwards of 30 billion dollars over its lifetime.
Why is the move to a subscription service considered a watershed moment for the gaming industry?
-It's a watershed moment because Call of Duty is one of the top five franchises in gaming, and such a large franchise moving to a subscription service is unprecedented.
How does the subscription model differ from the traditional model in terms of monetization opportunities for publishers?
-The subscription model allows for ongoing monetization through in-game purchases and recurring revenue, rather than a one-time premium sale.
What opportunities does the subscription model provide for die-hard fans to spend money while playing?
-Die-hard fans have the opportunity to spend money on in-game items such as extra lives, and there's an option to upgrade to premium editions of the game.
Is Microsoft expecting to lose money with this new subscription model, and what is their strategy?
-Microsoft is taking a pragmatic approach to mitigate the loss of premium sales by offering in-game monetization opportunities and premium edition upgrades.
Is the gaming industry moving towards a Netflix-like model for all games, similar to the shift in movie and music industries?
-While the idea of a 'Netflix of gaming' has been around for a while, the industry is not expected to switch completely due to the unique ability to monetize in-game, allowing for both subscription revenues and in-game purchases.
Outlines
🎮 Call of Duty Subscription Model Shift
The video discusses a significant change in the marketing strategy for the popular game franchise Call of Duty. The publisher is transitioning from a one-time purchase model to a monthly subscription service, similar to Netflix. This change is notable because Call of Duty is a blockbuster game with a large fan base and significant sales history, generating over 30 billion in revenue. The new model will allow gamers to pay a monthly fee instead of the traditional $70 to $100 upfront cost. The subscription will include access to the new Black Ops 6 version releasing in October. Piers Harding, head of games research at ampair analysis, explains that this move could be more profitable in the long run due to the potential for in-game purchases and the ability to reach a wider audience. The change also reflects a broader industry trend towards subscription services in gaming.
Mindmap
Keywords
💡Call of Duty
💡Black Ops 6
💡Subscription Model
💡Game Pass
💡In-Game Monetization
💡Piers Harding-Rolls
💡Netflix
💡Blockbuster Title
💡Gaming Industry
💡Recurring Revenue
💡Extra Lives
Highlights
Call of Duty, a major video game franchise, is shifting its marketing strategy with the release of Black Ops 6 in October.
Gamers will now pay a monthly fee instead of the previous one-time purchase ranging from $70 to $100.
Call of Duty, played by 25 million people monthly, will be part of a subscription similar to Netflix.
The move to a subscription model is significant for the gaming industry due to the franchise's scale and sales of over 30 billion.
Call of Duty is joining Xbox's Game Pass on both console and PC platforms.
Publishers might see more opportunities for in-game purchases like extra lives to offset the loss of premium sales.
Microsoft's strategy aims to mitigate the loss from premium sales with in-game monetization.
The gaming industry is exploring a pragmatic approach to balancing subscription services with in-game purchases.
The potential for ongoing monetization within games sets them apart in the entertainment spectrum.
Subscription services are seen as incremental to the gaming industry's overall revenue opportunity.
The gaming industry is not expected to follow the same subscription model shift as seen in video or music.
The 'Netflix of gaming' concept has been discussed for about a decade.
Physical sales or premium sales are not being entirely replaced by subscription models in gaming.
Subscription services aim to reach larger audiences for potential in-game monetization.
Pierce Harding from ampair analysis provides insights on the gaming industry's shift towards subscription models.
Transcripts
now let's cross to the world of video
gaming now and a dramatic shift in the
way that the Blockbuster game Call of
Duty is marketed by its publisher look
at it there isn't it very exciting um
there is a new version coming out in
October Black Ops 6 uh but a big
difference also coming in how Gamers
will pay for it they'll pay a monthly
fee to play it previously they had to
buy the title for for anything from 70
to $100 now though Call of Duty played
by 25 million people every month will be
bundled into a monthly subscription
costing around the same as your Netflix
subscription Pierce Harding rolls is
head of games research at the market
research firm ampair analysis and joins
me now from Cambridge here in the UK hi
Piers thanks for joining us tell us
explain for us why is this so
significant in the world of
gaming it's significant because it's
such a big franchise so we've had games
that have at launch gone into these
subscription Services before but nothing
the scale of of Call of Duty which over
its lifetime it's it's made sales of
upwards of 30 billion so it's a huge
franchise it's one of the you know top
five franchises really in the game Space
and um for that to go directly into a
subscription service so it's going into
game pass on on Xbox uh platform and on
PC game pass as well it um is is quite a
warshed moment for the industry so I
mean you might think with a big
Blockbuster title like this the that the
publisher would take any opportunity
they could to to to shake down the fans
not least with that uh introductory fee
that they used to have to to to to pay
but of course things are changing and
there's going to be more opportunities
for Di hard fans to spend money as
they're playing for buying things like
extra lives I'm sure Microsoft is not
doing this uh well to to lose money are
they they think they're going to make
more money out of this overall um well I
think they sort of you know they they're
taking a kind of pragmatic approach to
mitigating the uh the costs of of losing
out on some of those premium sales so
there's the option really to upgrade to
premium editions of the game even if
you've got the game pass and the
standard version of the game but yes
you're right in terms of the in-game
monetization there's this big
opportunity um to monetize the audience
on an ongoing basis and that's really
what makes games unique you know when
you're looking at the entertainment
Spectrum the ability to monetize uh the
audience within the game and keep that
recurring Revenue going on a on an
ongoing basis sure so Pius is this
basically the world of gaming going a
bit like the world of of movie buying
you know Netflix is around and its
equivalence I should say nobody's buying
or hardly anyone's buying DVDs anymore
is this the way video gaming is going as
well nobody's going to be spending their
50 to 100 quid on a on a title they'll
be on a monthly deal like
this um well the idea of the Netflix of
gaming uh has been around for probably a
decade or so um I don't think it's going
to switch like we've seen in the video
space like we've seen in the music space
because you have this unique ability to
monetize in gamees so it's not it's not
just about replacing uh what were sort
of physical sales or premium sales paid
for games with subscription revenues
it's it's the ability to reach bigger
audiences and then monetize those people
in game and in that respect
subscriptions services are really
incremental to the overall opportunity
okay Pierce Harding from ampair analysis
thank you for that
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