Growth of Video Game Subscription Spending Stalls, New Data Suggests

ign.com:

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.

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