Sony Group (SONY  ) is creating a new subscription gaming service in an effort to compete with the so-called "Netflix (NFLX  ) for games", Microsoft's (MSFT  ) Xbox Game Pass with its 25 million subscribers. These services give users the ability to stream games from the cloud, allowing them to play their purchased games on a number of different devices.

This isn't Sony's first foray into the subscription service model. PlayStation Plus cloud storage and online multiplayer has been available since 2010, and PlayStation Now game streaming was later added to the company's services. The new subscription service is meant to be a revamped version of the two older programs, with three tiers increasing in cost and benefits.

"The new Extra and Premium tiers represent a major evolution for PlayStation Plus," Sony wrote in a blog on its site. "With these tiers, our key focus is to ensure that the hundreds of games we offer will include the best quality content that sets us apart."

Once the new service is introduced, PlayStation Now will cease to exist, and its 3.2 million members will be switched to the new PlayStation Plus three-tier membership program, which itself will replace the current 48 million member PlayStation Plus.

In the lowest membership tier, PlayStation Plus Essential users will have access to the same services as current PlayStation Plus members. This includes online multiplayer, cloud storage, and two downloadable games per month. Members also get access to "exclusive discounts".

According to Sony, "There are no changes for existing PlayStation Plus members in this tier." The price of the PlayStation Plus membership is meant to remain at the current price, $9.99 per month or $59.99 per year in the United States.

In the next tier, PlayStation Plus Extra, users will have all of the same benefits of the lower tier, along with access to 400 PlayStation Studio games available for download. This tier is priced at $14.99 per month, or $99.99 per year.

Finally, the highest membership tier, PlayStation Plus Premium, has access to all of the benefits listed above, as well as another 340 games, including PS3 games available for streaming and a collection of "beloved classic games" for streaming and download.

"At launch, we plan to include titles such as Death Stranding, God of War, Marvel's Spider-Man, Marvel's Spider-Man: Miles Morales, Mortal Kombat 11, and Returnal," Sony wrote. "We're working closely with our imaginative developers from PlayStation Studios and third-party partners to include some of the best gaming experiences available with a library that will be regularly refreshed."

However, commentators note that the catalog will not include Sony's new releases. This is likely being done in an effort to maintain the company's revenue from game sales. Still, experts say holding back new releases could damage Sony's ability to attract subscribers.

Premium members will also have access to a try-before-you-buy game trials and cloud streaming for all of the games available to Essential and Extra members. Streaming is accessible on PS4s, PS5s, and PCs.

The highest membership tier is priced at $17.99 per month or $119.99 per year. This price is being compared to Game Pass' top tier, Game Pass Ultimate, set at $180 per year.

"Value and pricing of that nature would simply not be possible if we were to put our new games into the service upon their release," Sony Interactive Entertainment CEO Jim Ryan told Reuters.

Sony stated in its blog that these prices may vary from market to market. This includes a lower priced PlayStation Plus Deluxe service available in select markets without access to cloud streaming.

"In the June timeframe, we'll begin with an initial launch in several markets in Asia, followed by North America, Europe and the rest of the world where PlayStation Plus is offered," Sony wrote. "We aim to have most PlayStation Network territories live with our new PlayStation Plus game subscription service by the end of the first half of 2022."