Summary
Subscription services likePlayStation Plusand Xbox Game Pass are hallmarks of gaming today, but at least one analyst thinks they’re not the future of the industry. Nintendo, PlayStation, and Xbox all offer their own subscriptions giving users a rotating selection of games in return for a regular fee, which all three also require for online play. However,PlayStation Plusand similar services may not be growing like they used to.
PlayStation has recentlyraised the price of PS Plus in several countriesfor the second time in two years, and Xbox Game Pass subscriptions became more expensive in 2024. Still, both services have seen their fair share of exciting titles and updates in recent months. While it may not look like this business model is fading out of fashion for now, some think that it may not reshape the gaming industry the way it once seemed like it would.
Mat Piscatella, a video game analyst and Executive Director at market research firm Circana, posted on Bluesky that PS Plus and Xbox Game Pass are “certainly not THE future” of the gaming sector. This was in response to the news that Sony ispulling 22 games from PS Plusin May, including popular titles likeGrand Theft Auto 5andPayday 2. That decline in available games seems to paint a less-than-stellar picture of the future of subscription services in light of how, according to Piscatella, U.S. spending on these platforms has remained relatively flat since a spike in 2020 and 2021.
Analyst Mat Piscatella Says Subscription Services Are Part of the Future but Not All of It
Piscatella did point out that there was a bump in spending around late 2024, thanks toCall of Duty. The day-one availability ofBlack Ops 6helpedXbox Game Pass set a new revenue recordfor the quarter, leading to a 2% increase in Xbox content and services income. Still, that was apparently the exception to the rule, although Piscatella did not write off subscription services entirely. He clarified that these platforms may still play a role in the future of gaming, but that they may not be the driving force behind it.
In response to a comment on his original post, Piscatella expanded on his point by saying some manufacturers are shifting away from pushing for subscriptions. However, some companies are still making the model work for them. Rebellion’s CEO recentlyattributed much ofAtomfall’s success to Xbox Game Pass, which helped a larger audience find the game. Still, how much, if at all, platforms like Game Pass and PS Plus will grow and the future or how the industry may adapt remains to be seen.
