Mar 1, 2019

The video game subscription wars are on

Illustration: Rebecca Zisser/Axios

Google, Microsoft, Apple and Amazon are each reportedly working on their own versions of a "Netflix for games," as the tech giants enter a heated battle to own the subscription business for video games.

Yes, but: It's easier said than done. Netflix rose to the top in part because it was able to exploit a gap in the market years ago around content licensing. An exact parallel to that doesn't exist in the gaming industry.

Driving the news: Google is planning to unveil its videogame service at the Game Developer’s Conference next month in San Francisco, Fortune reports. The search giant is reportedly spending heavily to get game publishers to license their content.

  • Apple is looking to build a service that allows users who pay a subscription fee to access a bundled list of titles, Cheddar reported in January. Apple could choose to use a March 25 event, where it is expected to introduce news and video subscriptions, to also debut a game subscription offering.
  • Microsoft's service could let users play high-end video games anytime on any device, not just Microsoft's own Xbox console, Business Insider reported in January.
  • Amazon is building a subscription streaming service for games, The Information reports. Like Google, it's also reportedly in talks with game publishers.

The big picture: Subscription bundles for games have been around for a long time, but some of the new streaming services will aim to move not only the software but the processing for the game into the cloud.

  • That would represent a big shift in the gaming industry, eliminating not just the need for players to buy individual copies of games but also, in some cases, their need for the expensive specialized hardware required to play them.

Be smart: The problem is that the economics right now don't incentivize game publishers to license their content to tech companies.

How it works: One key difference between video games and entertainment programming is that with gaming, there isn't as big a market for catalog content —material that people want to consume over and over even when it's old (think "Friends" or "Seinfeld").

  • This means that tech companies need to come up with lots of cash to convince game makers, like Electronic Arts (EA) or Activision, to license them their newer stuff.
  • But game makers have little incentive, even with a lot of cash being thrown at them, to give up a cut of their sales revenue to tech distributors when they can still sell directly to consumers for now.

What's next: A likely outcome of the streaming wars will be that tech companies begin by licensing and selling individual games a la carte instead, says Michael Pachter, a research analyst at Wedbush Securities.

  • "Could Amazon be successful? They would have to do it the way Apple did it," Pachter adds. "A la carte sales first (iTunes), and a subscription option later (Apple Music)."

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World coronavirus updates: Cases surge past 720,000

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

There are now more than 720,000 confirmed cases of the coronavirus around the world, according to data from Johns Hopkins. The virus has now killed more than 33,000 people — with Italy alone reporting over 10,000 deaths.

The big picture: Governments around the world have stepped up public health and economic measures to stop the spread of the virus and soften the financial impact. In the U.S., now the site of the largest outbreak in the world, President Trump said Sunday that his administration will extend its "15 Days to Slow the Spread" guidelines until April 30.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7 p.m. ET: 718,685 — Total deaths: 33,881 — Total recoveries: 149,076.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 7 p.m. ET: 139,675 — Total deaths: 2,436 — Total recoveries: 2,661.
  3. Federal government latest: President Trump says his administration will extend its "15 Days to Slow the Spread" guidelines until April 30.
  4. Public health updates: Fauci says 100,000 to 200,000 Americans could die from virus.
  5. State updates: Louisiana governor says state is on track to exceed ventilator capacity by end of this week — Cuomo says Trump's mandatory quarantine comments "panicked" some people into fleeing New York
  6. World updates: Italy on Sunday reports 756 new deaths, bringing its total 10,779. Spain reports almost 840 dead, another new daily record that bring its total to over 6,500.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Trump says peak coronavirus deaths in 2 weeks, extends shutdown

Photo: Tasos Katopodis/Getty Images

President Trump is extending his administration's "15 days to slow the spread" shutdown guidelines for an additional month in the face of mounting coronavirus infections and deaths and pressure from public health officials and governors.

Driving the news: With the original 15-day period that was announced March 16 about to end, officials around the country had been bracing for a premature call to return to normalcy from a president who's been venting lately that the prescription for containing the virus could be worse than the impacts of the virus itself.

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