The U.S. video game subscription market is likely approaching a plateau in terms of player spending, according to new data from analytics firm Circana.
According to the company’s Games Market Dynamics report, in April 2023 game subscription spending in the U.S. was only 2% higher than in the same period last year.
“Finding new subscribers beyond the console ownership base has proven very difficult thus far,” Circana executive director Mat Piscatella said in a tweet.
Growth of video game subscription spending has stalled. According to Circana’s Games Market Dynamics reporting, April ’23 sub spending in the US was only 2% higher than April ’22. Finding new subscribers beyond the console ownership base has proven very difficult thus far.
— Mat Piscatella (@MatPiscatella) June 7, 2023
Sony’s PlayStation Plus saw zero growth in subscribers year-on-year ending March 31. As of the end of March, Plus had 47.4 million subscribers. This comes despite the launch of PS Plus Premium and PS Plus Extra in June last year.
Microsoft’s Game Pass hit 25 million subscribers in January 2022, but Microsoft hasn’t announced fresh figures since.
Xbox boss Phil Spencer has bemoaned a lack of Game Pass growth on console specifically, saying he expects more to come from PC.
Spencer has also insisted Microsoft does not expect Game Pass to become Xbox’s main source of income, and stressed that as long as it remains in the 10-15% of overall revenue band, it will be profitable.
This potential plateau comes in a post-pandemic recalibration for the video game industry, as well as a cost of living crisis that has caused many to re-evaluate their spending habits.
Sony and Microsoft take different approaches when it comes to their respective subscription services. While Microsoft releases its first-party games day-and-date on Game Pass across Xbox and PC, Sony refuses to do the same with its PlayStation exclusives, which it sells first before adding to PS Plus and PC later.
And while Game Pass has seen the addition of a number of superb smaller games from Microsoft’s studios, it has struggled in terms of AAA first-party games, with 343’s Halo Infinite and Arkane’s Redfall failing to make an impact. The pressure is now on Bethesda’s Starfield, set to launch into Game Pass in September, to boost subscriber numbers.
While both Sony and Microsoft face a tricky job significantly growing subscriber numbers, new game sales appear to be increasing.
“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),” Piscatella added. “Should be an interesting week ahead.”
That’s a reference to various video game announcement events set to take place across Summer of Gaming 2023, including tonight’s Summer Game Fest. The Xbox Games Showcase and Starfield Direct takes place June 11.
Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. Send news tips to [email protected].
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