Report Claims Gaming Subscription Growth Is Stalling In The US

See full bio

Abiyan

At Tech4gamers, I cover all sorts of gaming news. Whether it’s a leak of any upcoming game or an update, an announcement, or a rumour, I like to write about it all. Over the weekend, I sit and write features where I talk about games that I miss or want to see return.

See full bio

Gaming subscription services have grown in popularity as it was reported that Xbox made over $2.9 Billion just from its Game Pass subscription in 2021 and was expected to reach the $4 Billion mark in the year 2022.

While gaming giants like Microsoft and Sony are still finding appealing ways to bring consumers toward subscriptions, a new report states that gaming subscription growth is now slowing down.

Why it Matters: Companies like Microsoft and Sony have invested heavily in the subscription model, with the former offering big AAA games at release on the Game Pass subscription.

On the other hand, 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). Should be an interesting week ahead.

— Mat Piscatella (@MatPiscatella) June 7, 2023

As seen above, subscription growth has stalled in the US. According to the latest Circana Games Market reporting, gaming subscription services have seen only a 2% growth when comparing April 2022 to April 2023.

Despite the lack of price hikes, subscriptions like Xbox Game Pass and PS Plus Extra are finding it difficult to bring newer consumers to the eco-system. On the other hand, traditional releases are still performing well.

The report further highlights that recent traditional releases, especially digital sales, have performed well. This includes games like The Legend of Zelda: Tears of The Kingdom, which sold over 10 million copies in the first three days.

Traditional games have also seen a price hike to $70 in recent years. This includes the latest Legend of Zelda, which became Nintendo’s first $70 release. Still, it seems consumers are buying plenty of new releases.

Previously, Xbox Game Pass missed its Fiscal Year 2022 target for Game Pass subscribers by a whopping 10 million users. This may be concerning for Microsoft since Game Pass is one of the biggest incentives for the Xbox platform. However, future releases like Starfield could lead to a huge surge in subscribers.

Abiyan

[News Reporter]

Abiyan is on track to complete his Computer Science bachelor’s degree. His enthusiasm for writing and gaming motivates him to keep readers and gamers updated with the latest information from the industry. In his free time, Abiyan enjoys playing Dota 2 and Rocket League. Abiyan has also been cited in reputed websites such as Kitguru, Comicbook, GamingBible, Eurogamer and Gamingbolt.