PS Plus, Xbox Game Pass and other game subscriptions saw the biggest growth in 2025, driven by both price hikes and an influx of new subscribers.
During an interview with content creator Xbox Expansion Pass, Mat Piscatella, Senior Director and Video Game Industry Advisor at Circana (formerly NPD), revealed that PS Plus, Xbox Game Pass and other game subscriptions achieved the biggest growth in the US video game market in 2025. He explained that while overall player numbers and engagement hours remained relatively stable, spending patterns are shifting, and subscriptions are leading the charge.
“In the US in terms of total spend [we] reached about $60.7 billion,” Piscatella said, noting that the market was up 1.5% year-over-year, with the standout category being subscriptions. “The biggest growth areas were in subscription spending. That was actually the biggest growth driver last year. We had 20% increase in spending on subscriptions.”
The subscription category includes services such as Xbox Game Pass, PlayStation Plus, World of Warcraft, Star Wars: The Old Republic, and Nintendo Switch Online. As per Piscatella, the growth wasn’t solely driven by new users. “That was not just because more players subscribed. There were a lot of price increases taken over the last year in subscriptions. So, a little bit of a combination there.”
The analyst acknowledged that multiple price hikes across major services like Game Pass have pushed monthly costs higher, with top-tier subscription plans reaching price points that some consumers find intimidating, but suggested that the strategy appears to be working for now. “When you hike a price quite significantly, the bet there is the increased spend per user will offset any decline in subscribers you have,” he explained. In other words, even if some players cancel, higher per-user revenue can compensate for the loss. “So far that seems to be working out.”
However, Piscatella also raised concerns about broader market volatility. Hardware pricing and availability could significantly alter the subscription value equation. With console and PC component costs fluctuating, and some devices seeing notable price increases in certain regions, the economics of game access may change dramatically. “If you can’t get a hardware device, then what are your options?” Piscatella asked. In a scenario where console prices surge dramatically, subscription services, particularly those offering cloud access, could become more attractive despite higher fees. “The value proposition could change pretty dramatically if consoles are all of a sudden over a thousand dollars because of the component issue.”
