PlayStation’s Loyalty Problem: Rising Prices, Live Service Bets, and a Shifting Generation

If you have kept track of PlayStation through this current generation, you know there are many changes beyond new game releases and technological upgrades. There has been nothing revolutionary, but rather a series of decisions building on each other to produce a trend of increasing prices, benefits of loyalty becoming less, and a business approach that is not really reflective of what its fans want.

One such change is clearly visible in the PlayStation Plus service. Something that seemed like an ordinary subscription plan has slowly evolved into a service with more plans and higher costs. As it was upgraded from its basic version to Essential, Extra, and Premium, it seemed to offer players a better deal.

The concept of bringing back classic PlayStation games from previous generations seemed like a sure hit if you remember your PS1, PS2, or PSP times.

Games like Tekken: Dark Resurrection, Wild Arms 4, Grand Theft Auto: Chinatown Wars, Dissidia Final Fantasy, Crisis Core: Final Fantasy VII, Final Fantasy Tactics: The War of the Lions, Persona 3 Portable, Monster Hunter Freedom Unite, Patapon, LocoRoco, and Crimson Gem Saga were precisely what many expected to see reappear regularly.

It seemed the price points would remain reasonable at first, with Essential costing around $60 per year, Extra about $100, and Premium roughly $120. However, prices started increasing almost immediately. Essentials’ cost rose to about $80, Extra to about $135, and Premium to about $160 each year. Now, you’re paying a lot more for the same service, but in reality, there hasn’t been much growth in the content.

Rather, you will have seen months where the Extra catalog receives nothing more than a few additions. The buzz over the oldies has been somewhat subdued if you thought you would be seeing an extensive collection of your favorite games. Aside from some notable exceptions, you will see nothing but drips and drabs of game releases from the past, rather than a robust back catalog release plan. Premium is particularly disappointing if you are interested in streaming capabilities through consoles such as the PlayStation Portal.

Another expectation for the PlayStation Plus subscription plan was that you could test new games.

However, even this does not make up for the shortcomings that you might be experiencing at the moment. This is especially true for the tier’s original launch, when there was anticipation that you could try out new games before committing to purchase them. There was also some expectation that you would receive PlayStation 3 backward compatibility, but unfortunately, this has yet to come to fruition.

But apart from that, there’s another change that you will probably observe if you are one of their long-term subscribers. Discounts and special offers that were previously granted to loyal PlayStation Plus subscribers are now less likely to be targeted towards you. Rather, those are typically reserved for new players – precisely the kind that Sony wants to acquire.

This change may be more apparent for customers who would usually take advantage of discounts offered on days of play or Black Friday. But since Sony now targets new customers with these discounts, it becomes harder for long-term PlayStation Plus subscribers to benefit from them.

Another element missing from this picture is the PlayStation rewards program, one more puzzle piece that has quietly fallen off the table.

As a gamer who invested money into buying content on this console, at least you would have received a little bit of something back, thanks to the reward program. The absence of such a program means gamers are no longer receiving feedback or incentives for their loyalty and activity. Simultaneously, you’re witnessing numerous remasterings that do not seem entirely logical to you.

Games like Horizon Zero Dawn have received updates, which is definitely a good thing, but the fact that some other old series don't get similar treatment makes it rather frustrating. For instance, Killzone, inFAMOUS, Resistance, or Syphon Filter series are still waiting for their day. The most controversial case of the ones mentioned would be Days Gone getting a remaster.

In this instance, the game has a well-established fanbase that has waited many years for a sequel. Yet instead of getting a continuation of the story and a new experience, players receive a remaster of the existing game, something entirely disconnected from what the audience was expecting. Even more so, since the studio developing it (Bend Studio) has allegedly worked on live-service titles for years.

Another recurring theme that we can observe in this generation is the transition towards live services.

You have surely seen how the gap between big releases from various first-party studios has grown significantly over time. For example, Naughty Dog has been silent for several years already, releasing no games during that time. And even when the next big titles come out, their development cycle seems very long. You’ll find Guerrilla Games tied up in other projects that seem to pay a great deal of attention to online features, leading to delays in releasing an actual Horizon 3 in the near future.

This doesn’t mean there won’t be a third installment of the series; rather, it will be pushed back because development efforts are being allocated elsewhere. Another example you could consider is Bend Studio after Days Gone. Rather than creating a proper follow-up to the first game, the studio shifted to live-service content that wasn’t particularly successful in the end.

You now find a remastered version of their earlier game, rather than the continuation people were hoping for. And, as we have witnessed, some high-profile projects like Concord and Fairgame$, which received substantial funding, have raised doubts about whether these games would be successful in the long run. This is a natural question to raise whenever big budgets go into making games that fail to make the right impression, particularly given so many franchises that seem to be left untouched despite their huge potential.

There are definitely success stories too; Helldivers 2 is just one case in point. This project worked successfully, but it is clearly a deviation from the general rule rather than anything else, because this success can hardly be replicated across all studios working on live service projects.

One of the things that you may already be aware of is how Bluepoint Games- one of the developers of some of the best remakes, including Shadow of the Colossus, Demon’s Souls, and Uncharted: The Nathan Drake Collection- ended up being involved in live service projects that did not end well, followed by a restructure and eventual bankruptcy or shutdown of this studio.

Looking back, you’ll also notice some franchises that were once iconic of the PlayStation brand but which seem dormant now. Sly Cooper, Jak and Daxter, Killzone, and Gravity Rush have not seen a new installment come out for quite some time now. There has been no real consideration of reviving these franchises’ multiplayer features either, since doing so would compete with other ongoing priorities.

On the other hand, there has been an increasing trend towards rising costs in the PlayStation lineup. The base price for the PlayStation 5 was originally set at around $500, but in several parts of the world, we can already see prices rising for its digital and premium versions. There is also talk of further price increases in the near future.

Rising prices and weaker competition could change the value of gaming ecosystems for players.

Since you're opting to remain in the ecosystem, you'll be subject to higher prices for both hardware and subscription services. With lower discounts for loyal users and lower levels of incentives, this will significantly alter the value equation compared to previous eras. The element of dynamic pricing comes into play here. Discounts and other incentives offered will be based on how much time and money you've invested.

As a result, the more you invest, the fewer the incentives you'll receive going forward. As a new user, you will receive greater discounts, which will help bring you into the fold. All of that, though, occurs in a competitive environment that is not quite as fierce as it used to be. When you do not face pressure from competition, you do not necessarily have any external factor that pushes the game company towards adopting an opposite strategy, be it through pricing or services.

In essence, then, what you see in this generation of consoles is escalating prices, greater focus on live services rather than traditional titles, reduced rewards for loyal customers, and less emphasis on big single-player franchise games. It does not mean that games are not being made, but the experience itself may differ from what you had before. Going forward with the console generations, the big question will be about the future, especially given low competition and rising prices.