Growth Of Video Game Subscription Services, Including PS Plus/Game Pass, Has Stalled, Report Indicates

74

The growth of video game subscription services, including the likes of PS Plus and Xbox Game Pass, has stalled, based on a new report.

NPD’s Mat Piscatella shared on Twitter that the growth of spending on video game subscription services, such as PS Plus and Xbox Game Pass, has stalled. He cited a report from Circana’s Games Market Dynamics,which stated that spending on video game subscription services in the US during the month of April, 2023 was only 2% higher than in April, 2022.

According to Piscatella, finding new subscribers beyond the console user base has proven to be very difficult thus far. On the other hand, he mentioned that the big new premium video game releases of 2023 have done exceptionally well in terms of sales, particularly digital. Though, he added that many physical copies The Legend of Zelda: Tears of The Kingdom were sold at retail as well.

Previously, it was reported that Microsoft’s premium game subscription service, Xbox Game Pass, has over 15 million players on PC. According to the LinkedIn profile of Group Product Manager for Xbox Content & Audience Strategy at Microsoft, Mark Skwarski, Xbox Game Pass has over 15 million players on Windows.

Skwarski’s resume states that he helped in building a team to launch new features into Xbox Game Pass and executing marketing campaigns that increased the total subscriber count from 5 million to over 25 million and increased revenue by $2 billion (54% CAGR) over a 4 year period. He also helped in building and executing the strategy to grow Xbox Game Pass on PC, focusing on the right games, app experiences, and marketing activations (including refreshed branding) to increase PC subscribers by 5 times. In addition, Skwarski partnered with creative directors at Bethesda and Xbox Game Studios to pilot new growth ideas, making it easier for the now over 15 million PC players to enjoy Xbox Game Pass.

In related news, digital media and entertainment software analyst, Michael Pachter, stated earlier that he expects Xbox Game Pass to hit 50 million subscribers if the Activision Blizzard King deal closes. Speaking during a recent episode of Pachter Factor, Pachter made, in his words, a rather bold prediction regarding Microsoft’s premium game subscription service.