Over the past few years, we have seen a growing focus on subscription services in the video game industry. Hailed by many as an inevitability, they have received numerous accolades, especially Microsoft Gaming’s Game Pass, but have also sparked a lot of discussion due to concerns about their sustainability, particularly from Sony Interactive Entertainment.
The Profitability of Game Pass
After Microsoft Gaming closed four studios, including TangoGameworks which delivered the award-winning and highly acclaimed Hi-Fi Rush, questions arose about whether the profitability of releasing games on Game Pass is related to the closure of more studios.
Stagnation in Subscription Spending
Mat Piscatella from Circana, who monthly reveals console, game, and accessory sales in the United States, shared that in March 2024, spending on non-mobile game subscriptions stagnated, with only a 1% increase compared to the same month in 2023.
Challenges in Attracting New Subscribers
“The money spent on video game subscriptions has stagnated. According to the Circana report, spending in April 2023 in the United States was only 2% higher than in April 2022. Finding new subscribers beyond console buyers has been very difficult so far,” wrote Piscatella in June 2023.
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