Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      The little-known company disrupting Eskom’s monopoly

      16 June 2025

      Chief sub-editor wanted – help shape South African tech media

      16 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Entertainment and reviews » Sony launches Xbox Game Pass counterattack

    Sony launches Xbox Game Pass counterattack

    By Agency Staff30 March 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Sony’s revamp of its PlayStation subscription service is a major step towards levelling the playing field with Microsoft’s rival Xbox Game Pass, although holding back new releases may dampen enthusiasm, analysts say.

    Sony said its expanded PlayStation Plus service will offer hundreds of games, including recent hits such as Spider-Man: Miles Morales, for a flat monthly fee when it launches in the US, Europe and Japan in June.

    The service will not include new releases, Sony Interactive Entertainment CEO Jim Ryan said, but users can still find big-budget titles such as Returnal and God of War.

    “There will be more from PlayStation Studios, and all of the major publishers will be represented,” Ryan said.

    There will be more from PlayStation Studios, and all of the major publishers will be represented

    Sony is widely seen as leading in the console war, selling 17 million PlayStation 5 units even as chip shortages hit production, but has been under pressure to respond to the growth of Netflix-style game subscription services.

    The revamped Sony service combines the current PlayStation Plus, which has 48 million subscribers and offers online gaming and only a few free games each month, with PlayStation Now, which has 3.2 million users and a library of games to download and stream.

    There are three tiers, priced at US$9.99 to $17.99 monthly or $59.99 to $119.99 annually. The lowest-price tier, PlayStation Plus Essential, looks like Sony’s current offering.

    PlayStation Plus Extra adds a catalogue of PS4 and PS5 games. PlayStation Plus Premium offers a further library of older titles, cloud streaming in major markets and time-limited game trials.

    Such streamlining is “overdue”, said Lewis Ward, head of gaming research at IDC. “The number of PlayStation subscribers in the higher two tiers… will tick up over time, which is undoubtedly a core reason for this change.”

    High cost

    Given the high cost of developing new games, analysts had raised concerns that pressure to bundle more content with subscriptions may eat into profit at Sony’s coveted games unit.

    Sony will seek to preserve new game sales alongside the subscription service.

    “I think this move should improve margins, as more gamers will be driven to higher-cost subscriptions,” said Piers Harding-Rolls, head of games research at Ampere Analysis.

    “If content acquisition costs do increase, Sony will need to balance that with the additional revenue it will be generating from the PS Plus subscriber base,” he added.

    Microsoft is aggressively growing Game Pass, which has 25 million subscribers, by adding new titles on their launch day while buying studios to expand its offerings. In January, the Redmond, Washington-based firm struck a $68.7-billion deal for Call of Duty publisher Activision Blizzard.

    Microsoft’s Xbox Game Pass has proved to be very popular

    Sony, which has built its own in-house studio network, responded by buying Destiny publisher Bungie for $3.6-billion, with many analysts expecting further deal making.

    Microsoft has gained an early lead in subscriptions, accounting for 60% of the games subscriptions in North America and Europe, compared to 7% for Sony, according to Ampere Analysis. Subscriptions make up only 4% of total gaming spending.

    “PlayStation believes it is smarter for them and for third-party publishers to put older games into the subscription plan so that new games can maximise their revenue potential during their launch windows,” said IDC’s Ward.

    That hesitance means Sony’s offering “won’t have the pull of Microsoft’s service”, added Ampere’s Harding-Rolls.

    Sony’s newly announced pricing is seen as competitive. The premium tier’s $120 annual fee compares to $180 for Game Pass Ultimate. Both offer cloud gaming, with Sony users able to stream titles to their consoles and PC.

    Cloud gaming is seen as the future for the industry, because it doesn’t require downloading or installing games on a console or PC

    Cloud gaming is seen as the future for the industry, because it doesn’t require downloading or installing games on a console or PC. That is a potential threat to the console business, whose operators that have acted as industry gatekeepers.

    An annual subscription to the mid-tier PlayStation Plus Extra, which lacks this cloud-gaming feature, works out at just over $8 monthly, compared to $9.99 for the Game Pass. “Value and pricing of that nature would simply not be possible if we were to put our new games into the service upon their release,” said Sony’s Ryan.

    Microsoft has said that Game Pass subscribers play more games and spend more on games, too — a view echoed by Sony. “Everything comes down to engagement,” Ryan said. “If you get people engaged on your platform, monetisation typically follows.”  — Sam Nussey and Dawn Chmielewski, (c) 2022 Reuters



    Jim Ryan Microsoft PlayStation 5 PS5 Sony
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDell networking: the freedom to choose, the flexibility to grow
    Next Article Ericsson CEO faces investor ire over Islamic State scandal

    Related Posts

    AI to replace line judges at Wimbledon

    11 June 2025

    The future of database management is hybrid. Are you ready?

    6 June 2025

    How AI is rewriting the rules of software development

    4 June 2025
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.