Thursday, June 19, 2014

Sony’s Big Ambitions For It’s Little Service




Update[1]: PS Now is in Open Beta as of 7/31/2014.

Sony's PlayStation Now service streams highly interactive, console quality games to any device at any time. At least that's the goal, to be the Netflix of gaming. The service is entering Open Beta on July 31st on the PS4 console in the US and Canada before moving on to the PS3, PS Vita, PlayStation TV, and Bravia TV. Plans to expand further beyond the US and beyond the listed devices have been suggested.

With this move Sony looks to expand console gaming to the masses like never before. Are you a big Walking Dead TV Show fan and want to experience the critically acclaimed Telltale Walking Dead game, but don't own a console? No problem play it right off your TV. Heard your friends talking about the latest multiplayer game and want to jump in with them for a session? No problem jump in from your PC while they are on a PS4, Set-top Box, or TV. When we get to that point the device no longer matters the service is everything and for everyone.

Of course these possibilities are a bit off into the future. Before everyone is jumping in Sony needs to get a few thing right. The service needs to work, pricing needs to be right, the games need to be there, and the device list needs to grow and grow and grow.

For now lets assume the service works and skip that factor and focus on price. The revenue model that Sony has selected to start the service is 100% rental. You buy a block of time for a particular title and you get 100% of the game for that allotted time. The blocks at the moment are as follows: 4 Hours, 7 Days, 30 Days, 90 Days. Pricing for the blocks for most titles will range from $2.99 to $19.99.

While at first glance the pricing looks a bit steep, but if you take into account that 80% of games are never completed by players that buy the title the 4 hour or 7 day lower priced options start to look good. Why buy a title that I’m not going to finish when I can just instantly rent it at a much lower cost and have fun with it for a week. I think anything higher than the $3 - $20 price range is going to be a really really hard sell. The service is new and prices will be adjusted over time. I think more importantly Sony needs to lower their costs for running the service as soon as possible without sacrificing performance or scale. If they can succeed in doing so they will have to worry less about pricing and more about what engages the public the most, and that’s games.

The service will start with 100 games. That is not a lot. It’s less than 7% of the PS3’s current catalog of 1485 titles. In order for the PlayStation Now service to succeed consumers need choices. They need to be able to find something they want to pay to play. The complete existing catalog really needs to be there and new title need to be there as well.

With publishers focusing on the PS4 for new titles and the PS Now service locked for PS3 hardware driven games, will PS Now be a graveyard where games go to die or will it be a viable service with new exciting and unique experiences? Netflix pushes for original content to keep it’s customers coming back. Will we see original content specifically for the PS Now service? If there’s one part of the PS Now service that I feel seems a bit worrisome it’s the content. Lets see how the platform grows and addresses these concerns.

I believe PlayStation Now is Sony’s most ambitious product in gaming since they released the PS1. It could revolutionize everything and get the whole world to play. To accomplish this the service needs to expand outside the PlayStation family of products. If it can get the pricing, content, and devices right it could be a winner, but like Shuhei Yoshida, President of Sony’s Worldwide Studios says the service needs to walk before it runs. Here’s looking forward to July 31st.

PlayStation Now Promo:
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PlayStation Now Open Beta Walk Thru:

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