Video Game Subscription has stalled. Not looking good for MS or Sony : IGN

The U.S. video game subscription market is likely approaching a plateau in terms of player spending, according to new data from analytics firm Circana.

According to the company’s Games Market Dynamics report, in April 2023 game subscription spending in the U.S. was only 2% higher than in the same period last year.

“Finding new subscribers beyond the console ownership base has proven very difficult thus far,” Circana executive director Mat Piscatella said in a tweet.

Growth of video game subscription spending has stalled. According to Circana's Games Market Dynamics reporting, April '23 sub spending in the US was only 2% higher than April '22. Finding new subscribers beyond the console ownership base has proven very difficult thus far.

— Mat Piscatella (@MatPiscatella) June 7, 2023

Sony’s PlayStation Plus saw zero growth in subscribers year-on-year ending March 31. As of the end of March, Plus had 47.4 million subscribers. This comes despite the launch of PS Plus Premium and PS Plus Extra in June last year.

Microsoft’s Game Pass hit 25 million subscribers in January 2022, but Microsoft hasn’t announced fresh figures since.

Xbox boss Phil Spencer has bemoaned a lack of Game Pass growth on console specifically, saying he expects more to come from PC.

Spencer has also insisted Microsoft does not expect Game Pass to become Xbox’s main source of income, and stressed that as long as it remains in the 10-15% of overall revenue band, it will be profitable.

This potential plateau comes in a post-pandemic recalibration for the video game industry, as well as a cost of living crisis that has caused many to re-evaluate their spending habits.

Sony and Microsoft take different approaches when it comes to their respective subscription services. While Microsoft releases its first-party games day-and-date on Game Pass across Xbox and PC, Sony refuses to do the same with its PlayStation exclusives, which it sells first before adding to PS Plus and PC later.

And while Game Pass has seen the addition of a number of superb smaller games from Microsoft's studios, it has struggled in terms of AAA first-party games, with 343's Halo Infinite and Arkane's Redfall failing to make an impact. The pressure is now on Bethesda's Starfield, set to launch into Game Pass in September, to boost subscriber numbers.

While both Sony and Microsoft face a tricky job significantly growing subscriber numbers, new game sales appear to be increasing.

“The big new premium releases in 2023 have done exceptionally well in good ol' fashioned sales, particularly in digital (although TOTK has sold HEAPS physically as well),” Piscatella added. “Should be an interesting week ahead.”

That's a reference to various video game announcement events set to take place across Summer of Gaming 2023, including tonight's Summer Game Fest. The Xbox Games Showcase and Starfield Direct takes place June 11.

https://www.ign.com/articles/growth-of-video-game-subscription-spending-stalls-new-data-suggests

We know from MS, if they dont share their numbers we all know its a bad thing . As for Sony, good thing they don't put all their cards into sub accounts, but total games sold. but either way, not looking good for both Sony or MS.

Subscriptions work for movies because they're easily consumable media. Games take time and people play them at their own place and leisure. Constantly paying a rental fee to have access to a bunch of games goes against that.

I aggree with you . I believe MS approach was a dicey one. because I felt they were hoping that PS4 gamers would buy the xbsex over the ps 5 with game pass, but as all know PS5 lead over Xbsex is like 20-30 mill now :(. With MS having far less xbsex and s owners, their sub account for GP must be way lower then Sony's. I wouldn't be surprised if MS stops the day 1 on their exclusives and wait a year after release like Sony does. Sony was very smart to hold off on their exclusives being release on day 1 on their service.

Good

I guess the new narrative will be that MS never cared about subscriber numbers anyway

We're coming up on 2 years since gamepass got a must-play big-deal game. :/

@SolidGame_basic: hmm, you usually have crappy takes but this time you are spot on.

You can't rely on filler games like Redfall without having bangers as the pillars of the service. MS needs to start releasing their big games. I don't care about the PS+ tiers as Sony doesn't fully support their service with first party titles.

Only suckas pay for video game rental services. The world ain't all full of suckas.

This upcoming show has folks on edge.😂

Yet Nintendo continues to grow 😎

The only real player is MS and they haven't been really releasing anything that big. Not surprising.

But ultimately we can all agree that's all very concerning.

Capitalism is so damn exhausting. It's never enough. Growth growth growth. Unrealistic, unsustainable growth.

This so much, what will be enough for these blood sucking leeches?

All they did was grow during COVID and now they are firing hard working developers again now that the growth has stopped.

Absolutely unsustainable.

I don't rent games, I buy them, so doesn't affect me whether they succeed or not.

I have a lower tier PS Plus and have enjoyed the Trek To Yumi that I have played so far. But I do not want to pay for a service where games gets removed.

The lower tier is just good enough value for me but I like to meander through games not rush through them to complete them before they get removed.

:P

ok that funny

@SecretPolice said:

:P

If subscription models for games die off, no problemo for me. It's not a path I want gaming to take, or shift completely to.

Thought I'd use game pass way more than I have to demo games, but watching a bit of gameplay on YT before buying a game is just as good, if not better. Game pass is useless to me, and I think most people subbing to GP or Sony's equivalent would be better off spending that money buying games they'd actually enjoy instead.

Red Fall is a filler game, but you need bangers to support the service in order to rely on them. MS must start releasing their flagship titles. The PS+ tiers are irrelevant to me because Sony only partially supports their service with first-party games.

Asphalt Nitro MOD APK

How in the world you come up with that assumption from the topic?

Correction, not looking good for MS. Sony isn't putting their all into this business model.

Um they actually do, they just make sure said games make their money first. Sort of like letting a movie get it's theatrical run instead of going straight to home video...

Wii U almost killed Nintendo, success is never guarenteed. Have several seats already.

When you worship a company like he does, it comes easy.

@Litchie: A lot of games I consider subscribing to Game Pass for end up in Humble Bundles or Epic Store free giveaways. I don't think GP is worth it if you're the type of person that can only finish 3 games that are longer than 10 hours average at most in a month. Better off buying the games on sale.

WTF?

Bro, how many times does this have to be explained - MS is not in a console race with Sony. They shifted to a service based model. If they were interested in "just consoles", all day 1 first party games would not release on Xbox, PC, and cloud.

It's not about console sales - it's about Game Pass subscriptions and the ecosystem MS is building.

How many times does this have to be discussed?

Are you ready to pay me that $100?

Already malding. Not surprising.

@dabear:

lol :P

Neat!

Same. I tried that game too and it is pretty neat.

I only pay for the bare minimum $60 USD versions of PS Plus and Xbox Live simply because I have to in order to play online multiplayer games and enjoy other online features on the consoles.

@ermacness: You are new to TC?

@R4gn4r0k: @adrian1480: Whenever economists say something is "stagnant", in any other context people would call it "stable". Yeah, we gotta rethink this.

@nod_calypse: What are you on?

@Sagemode87: Growth slowing down on GP doesn’t mean subscriptions are down like they are on psplus though. It’s still growth on consoles, and big growth on PC.

Makes sense, but I still dig it. Imagine something like Gamepass when you're kid. Like a free(parents pay), at home rental store.

As long as I get value from a subscription service then I’ll pay into it. As soon as that stops then I will no longer subscribe. Won’t feel bad about it either.

may be the marketing is missing - Game Pass is a good deal I did not buy a game in 4 years and I have many games to play that I have never played before. and it combines the on line the Gold subscript.

it is the best deal to get a current gen for all the games you can play with the Xbox Series S and the Game Pass. Phil need to get on the campaign trial for this.

No I’m not, but did you read the topic?

PSN+ and, GamePass were always going to hit a subscriber count wall when it comes to consoles.

The more concerning part is GamePass since it's already on mobile, web, and PC.

Wisdom.

This is the only thing consumers should ask themselves. Value to you. Personally. Not other SWs freaks. You. Your family members. The people accessing the subscription. All subscriptions.

@nod_calypse:Your pills are obviously bad.

Some people don't like reality, so they make up shit. **shrugs**

So, you skipped your pills today?😎

The family part, for real. The only real value I see from GP and the like is for younger kids, like my little dude, that jump from game to game, and don't necessarily need to own everything. Perfect for them.

@Nonstop-Madness: GP subscriptions on PC had a big increase according to the article.

I very happily subscribe to none.... Steam is free.... Henceforth steam is superior for multi-player games.