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Charging a sub for things like heated seats is obviously broken, but I also don't know if people have an appetite for what the upfront costs would be for many pieces of software that are currently subscription based, in order to provide support for any length of time. Look at the pricing for IDA, which tries to balance having an astonishingly good product, but very limited market, for how this can end up distorted without being because the company is trying to make money hand over fist. It seems similar, to my eye, to a problem with video game development - the total cost of development continues to grow as expectations for many games do, faster than we make production costs cheaper, but consumers are very sensitive to prices upfront, so we end up with many alternate revenue streams to try and make up the gap, to say nothing of the continuous revenue needs for anything ongoing. And people lament companies being greedy, which is sometimes the case, but ultimately, if your game costs over 45 million euros to produce, retail price is $50, and you get perhaps 50% of that (to be generous), you need to sell 1.9 million copies to break even, let alone earn anything back. [1] But revenue streams like in-game cosmetic stores may get you a very different profit cut, even if they're only a few dollars each. [2] The same logic holds for things like recurring subscriptions or ad-supported content - much smaller amounts, but many more sources, adding up to mitigate this problem. I don't like it any more than anyone else does, but it's not just naked profit seeking, it's often that development and maintenance are expensive, and more people would pay $20/mo for Photoshop when they need it than would pay $500 or more upfront, and I don't see a good alternate model that works in the majority of cases. [1] - yes I'm eliding the complications of other companies putting up the upfront costs in exchange for all the money until their costs plus are made back. [2] - Also not touching the economics of gambling in-game and the long tail and whale economies. |
In the example of games, that additional revenue stream of day 1 DLC means content being arbitrarily cut off from the game before it's even released. That premium subscription with a +30% XP bonus is often a -30% XP loss for normal players in disguise. Those loot boxes and battle passes are holding hostage rewards that would be given out naturally through gameplay in another time. Those energy and gacha systems are preying on whales and gamblers.
In the case of software, at the same time the subscription model got popular, every application has also been reimagined as a "service, not a product". Maybe the death of local desktop apps would have happened anyway. I don't know.