Call of Duty Black Ops 6 subscription model set to shake up gaming | BBC News

Summary

Activision'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

00:00

🎮 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.

Keywords

💡Call of Duty

Call of Duty is a popular video game franchise known for its first-person shooter gameplay, often set in various historical and modern military conflicts. In the script, it is highlighted as a major shift in the gaming industry as its new version, Black Ops 6, will be marketed differently by offering a subscription model instead of the traditional one-time purchase.

💡Black Ops 6

Black Ops 6 refers to the upcoming installment of the Call of Duty series. The script discusses the significant change in its marketing strategy, where instead of the traditional purchase model, a monthly subscription fee will be introduced for gamers to access the game.

💡Subscription Model

A subscription model is a pricing strategy where customers pay a recurring fee to access a product or service. In the context of the video, the subscription model is being adopted by the Call of Duty franchise, allowing gamers to play the game for a monthly fee similar to a Netflix subscription, which is a departure from the traditional one-time purchase.

💡Game Pass

Game Pass is a subscription service offered by Microsoft for Xbox and PC gamers, providing access to a library of games for a monthly fee. The script mentions that Call of Duty will be included in the Game Pass, indicating a strategic move by Microsoft to attract more subscribers by offering a popular game as part of their service.

💡In-Game Monetization

In-game monetization refers to the strategies used by game developers to generate revenue from within the game itself, such as selling virtual goods, extra lives, or premium content. The script suggests that even though the game is available through a subscription, there will be opportunities for additional revenue through in-game purchases.

💡Piers Harding-Rolls

Piers Harding-Rolls is the head of games research at the market research firm Ampere Analysis. In the script, he provides expert commentary on the significance of the shift to a subscription model for the Call of Duty franchise and its potential impact on the gaming industry.

💡Netflix

Netflix is a streaming service that offers a wide variety of TV shows, movies, and documentaries for a monthly subscription fee. The script compares the new subscription model for Call of Duty to a Netflix subscription, indicating a trend in the gaming industry to adopt similar revenue models as other entertainment sectors.

💡Blockbuster Title

A blockbuster title refers to a highly successful and popular product, often generating significant revenue. In the script, Call of Duty is described as a blockbuster game with sales of over 30 billion, emphasizing its importance in the gaming industry and the impact of its shift to a subscription model.

💡Gaming Industry

The gaming industry encompasses the development, marketing, and monetization of video games. The script discusses a significant change in the industry with the adoption of a subscription model by a major franchise, suggesting a potential shift in how games are consumed and paid for by gamers.

💡Recurring Revenue

Recurring revenue is income that a company receives on a regular basis, typically from subscriptions or other recurring transactions. The script highlights the potential for Call of Duty to generate recurring revenue through its new subscription model, as opposed to the traditional one-time sales.

💡Extra Lives

Extra lives are a common in-game purchase that allows players to continue playing after they have been defeated in a game. The script mentions extra lives as an example of in-game monetization, suggesting that even with a subscription model, there are opportunities for gamers to spend additional money to enhance their gaming experience.

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