Microsoft Project xCloud (Game Streaming), part of Game Pass Ultimate

https://www.windowscentral.com/why-xbox-game-pass-nintendo-switch-and-other-systems-smart

And if Sony agrees they can go to Playstation too.

 

Sony must be in a very awkward dilemma

 

In Sony's case, if they allow GamePass on PS, they'd also likely trade for PSNow on Xbox - it's already on PC. And if they see GamePass on Switch, why not offer PSNow on it too? The bigger shock here is more Nintendo being open to the idea. I guess with no streaming service of their own, and no direct competition with the cross-platform titles, they don't feel it's particular competitive. But as such, I can't see why they'd intrinsically be against Sony also appearing on Switch except for 1) bitter rivalry and 2) MS possible paying loads of money as it's a good way to legitimise and expand the service - people subscribing on Switch will then also play on PC, and then consider getting an XB.

 

The article is all about “Why Microsoft would profit”, “why it would be good for Xbox”, etc, etc, not even touching on the Nintendo’s perspective of the thing.

The way I see it, such a service on Switch would indeed be a win for Microsoft, but honestly I do not see what Nintendo would profit from that.

The first reason is that switch is a portable console, and that streaming will not always be available, so if there is a Gamepass service, it will would only be available at home. I do not see that as a selling point for a console created with the concept of beeing able to allow us to access our games anywhere. In fact it would contradict the concept.

The second reason is that a gamepass service would canibalize game sales on Switch, specially on multi platform games where the Xbox version would be superior. So, Nintendo’s profit from royalties on sales would fall.
Besides, since Gamepass would not be owned or managed by Nintendo, its share on the 10 euros/month would be small. Note that, in an example, a person without the service can buy 5 games in a year, but one with it would only need to pay one subscription. On a 70 euros game vs 10 euros/month subscription, that’s a 350 euros income vs a 120 euros income (income, not profit).

The third reason is that the only way I see where Nintendo would profit something from that would be to have their own Nintendo Games on Gamepass. But that would, or at least it potencially could, not only hurt game sales, it could also would kill the need for a Nintendo console (specially since portability would not be an advantage on this service)

The way I see it, Nintendo could enter a service like this... but it would need to be their own service. Entering the Microsoft one is something I do not see as an advantage. Shure it would bring Xbox games to Switch, and maybe even Switch ganes to Xbox, but because of all of the above, the end result could end up hurting Nintendo.

At the very least, even if Nintendo could profit from this, Microsoft would profit more. And although their products are different on concept, they are both competing on the same market, and not all people buy two consoles. So helping the competition is not something I see as healthy. Like it or not, in a bigger or smaller degree, it is competition, and competition ultimate goal is to get the opponents market.

Am I seeing this wrong?

 

If you want a possible answer, look to Apple's closed iOS platform and why they allow applications offering a windows into other services/ecosystems. The simple reason is that because, for the most part, they take a cut of revenue made through through their system. There are other ways to buy for music, movies, tv shoes and books in iOS other than Apple's offerings and Apple benefits from most of these plus it's good for users.

What about the Switch platform outside of Japan? Do you think this is going to be something only offered in Japan?

 

I agree. However, there's the situation where Nintendo can't roll out a service like this - they can barely manage online services of standard 15 years old! Perhaps MS would provide Switch game streaming on GamePass?

How are MS and Sony positioned differently? I can't see why one would benefit and the other wouldn't. In fact their situation looks identical to me, except that in the past, Sony have tried to leverage their service to sell Sony hardware. That clearly hasn't worked and they'd be stupid to stick with that mindset, which we see with PSNow on general PC.

 

Not if Nintendo take a generous cut on all Gamepass subscriptions. And the vast majority of games on Gamepass are not available on Switch.

For the very rare games available on both Gamepass and Switch ? Nintendo could simply prevent them being on Switch Gamepass.

In that case it's a win-win for both MS and Ninty.

 

I wouldn't get too hung up on that. I'm pretty sure that if you broke down playtime for Switch most of it would be in the home.

Yeah. Those Netflix and Amazon Prime thingies are truly awful.

 

Lets keep this main thread about Project xCloud details and move the subjective discussion on streaming services here: https://forum.beyond3d.com/threads/subjective-quality-of-streaming-services-spawn.61100/

 

What is a generous part? 50%?
So a person with the service would give 60 euros per year to Nintendo.
I honestly doubt the capability of a service like Gamepass to finance current standards AAA games. And I really doubt that a person paying 60 euros year, not needing to buy any extra games, is the best way for Nintendo to increase its profits. If a person that usually buys 5 to 6 games per year becomes a client to the service, Nintendo will loose a lot.
But I might be wrong. I recognize I do have all the financial data to make correct assumptions.

 

This is easily fixed. There are a lot of small companies that operate on game streaming services. Nintendo has the financial capabilty to buy one, and use it to its advantage.

 

Static data like audio and video is easy to stream, games streaming is much much harder. You need powerful gaming virtual servers, robust netcode APIs and such. I don't think there are many small companies that can stream high end PC games to million of potential users.

And Nintendo wouldn't know how to operate a streaming company anyways. They have too much to learn. In their case a cooperation with MS would be much easier and wouldn't cost them much (and we know Nintendo don't like to spend much on R&D). If it doesn't work ? Well stop the cooperation !

With gamepass I meant the future MS streaming service obviously.

 

I cannot see a cooperation with Microsoft as an advantage... Because Microsoft is a competitor! Both of them sell videogames, and both compete for the wallets of their costumers. Shure some people will buy both consoles, but most will not! Promotion of the competitor product on their own does not seem like a good ideia, regardless of what product it is!

Besides you keep forgetting Nvidia. Nintendo Switch has an Nvidia SOC, and Nvidia has a streaming service that works on similar hardware. Nintendo could easily partner with Nvidia!

 

That's a very fair point. But then again, if MS have Game Pass streaming to nVidia Android tablets, they can readily stream to Nintendo. Perhaps it's a case that MS are the only competitor to approach Nintendo, and the others just didn't think to?

 

I'm not quite sure I follow. This is of as much benefit for Nintendo as it is for MS. Nintendo get some additional revenue from Game Pass users using Game Pass on their system. People may be more likely to buy a NSW if has access to an even larger library of games while on the go which means potentially more NSW games being sold and thus more game revenue.

Microsoft obvious benefits by potentially get more consumers into the Game Pass ecosystem. But unlike Nintendo, Game Pass being on NSW isn't likely going to increase sales of XBO. But who knows, maybe someone really likes a Game Pass game on NSW, but didn't like the streaming latency and goes out and buys an XBO.

I see it as mutually beneficially, especially as Nintendo isn't really directly competing with either MS or Sony, they operate in their own world. Nintendos actions don't significantly impact sales of PS or Xbox and Sony and Microsoft's actions don't significantly impact sales of Nintendo consoles.

As well, we've seen increased cooperation between Nintendo and Microsoft lately, so something like this isn't a complete surprise.

Regards,
SB