Report Claims Gaming Subscription Growth Is Stalling In The US

Only 2% Growth From Last Year!

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.

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.

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