PlayStation Now and Xbox Game Pass are “definitely not THE future” of video game subscription services.
Subscription services like PlayStation Plus and Xbox Game Pass are defining gaming today, even if at least one expert believes they are not the future of the business. Each of Nintendo, PlayStation, and Xbox has its subscription service that gives customers a different set of games to play every month because they all charge a price to play online. Conversely, similar services like PlayStation Plus may not be growing at the same rate.
While PlayStation has already raised the price of PS Plus in some countries for the second time in two years, Xbox Game Pass memberships saw a price increase in 2024. Both services, however, have had their share of exciting new releases and enhancements in the past few months. For now, though, this business model seems to be in vogue, even though some think it won’t have the same impact on the gaming industry as anticipated.
Bluesky featured an article written by Mat Piscatella, a specialist in video games and the executive director of the market research firm Circana. PlayStation Now and Xbox Game Pass are “definitely not THE future” of video game subscription services. This came after Sony announced in May that 22 titles, including popular ones like Grand Theft Auto 5 and Payday 2, would be withdrawn from PS Plus.
The decline in available games seems to indicate a less-than-stellar future for subscription services, considering that, according to Piscatella, U.S. spending on these platforms has been relatively stable after increasing in 2020 and 2021.
As a result of Call of Duty, Piscatella observed an increase in spending towards the end of 2024. The 2% increase in Xbox content and services revenues was driven by Xbox Game Pass, which set a new quarterly revenue record due to the day-one release of Black Ops 6.
Although Piscatella did not entirely rule out subscription services, they appeared to be an outlier. Even if these platforms aren’t driving the gaming industry, he made it plain that they have the potential to shape its trajectory.
