GamesBeat Summit 2025: Finding new ways for the industry to grow

The two -digit growth days have ended. But there are still ways to expand the market if companies start thinking outside traditional business models.

At Gamesbeat Summit 2025 in Los Angeles, the Catalin Alexandru, manager of Wedbush Securities, Michael Pashter, and market research head at Rhys Elliott, had a vital discussion about industry problems and how he can find new opportunities for growth.

Packter compared the current mode of the game industry as film and television industries were in the 1960s, and he returned when people could just watch programming either in theaters or on TV. Nowadays, we have a wealth of options to see this content, whether through services on request, subscriptions flow, or YouTube.

“There are many ways to reach this type of content. I think the game industry is about to start a new way to reach games-I think this is supported by ads,” said Bakhter. “So we are not yet in the advertising -backed business model that actually works for games, but I think it will come. And when that happens, the market will expand further.”

The success of Netflix has been offered with the addition of its advertising -backed plan, which now has 70 million subscribers worldwide. He said that Microsoft should consider something similar and make a version supported by Xbox Pass at a cheaper price. If the company displays an advertising plan that costs $ 7.99 per month, it may be theoretically, it may attract twice the number of subscribers.

He also did not understand why Microsoft hasn’t added any of its portable games to service yet. He wants to see a future that all these forms of entertainment – games, movies and television can be found on one platform.

“But why is there not Candy Crush on the game corridor? Why is Diablo Immortal on the game pass?

And if Game Pass does not make the transition to this future in all, it believes that Netflix will.

“[Microsoft] This cannot be done if the same old business players continue to manage the way they always run. They need young and new youth who think differently, and if they think differently, they have an opportunity to win. “To be honest, I actually think Netflix will win,” said Bakhtar.

Netflix has acquired ongoing studios and added games to the broadcast service in recent years, but it has not yet decreased in control unit and computers. If it can add these types of games to their platform through the friendly revenue sharing model for developers, he believes that they have a real snapshot to expand the market and become the next huge player.

But the subscription business model is not without its mistakes either. Elliott note that unlike Spotify or Netflix, people can consume a lot of songs and videos in one month, most consumers can play a game or two games only in the same time frame just for the length period to finish the game. This is not considering other factors such as free toys to play some free time.

Alexandro said that the game corridor model “has already proven that it was not a silver bullet” because many people had a huge accumulation of games on Steam and other platforms. Because of the other compact features such as Steam Steam and Friends lists, he finds it difficult to imagine that many people turn to Netflix, even if developers end up obtaining a greater share of revenues.

“This is what you have to overcome in order to get the balancing wheel on Netflix. Once you get the budget wheel in Netflix, you will transfer this monopoly from A to B”.

Make sure to review the full video to learn more about their ideas during an hour-long painting, including the future of live service games, crawling budgets on Triple-A, and what is the effect of Nintendo Switch 2 and Grand Theft Auto VI on the industry.