Analyst: Subscription Services Like PS Plus and Game Pass Are Not the Future of Gaming

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Summary

  • PlayStation Plus, Xbox Game Pass, and other subscription services may not be the future of the gaming industry.
  • Rising prices, games being delisted, and a lack of revenue growth have cast doubt on subscription services’ long-term viability.
  • Analyst Mat Piscatella suggests subscriptions may play a role in gaming’s future but won’t be its main driving force.

services such as PlayStation Plus and Xbox Game Pass, popular in today’s gaming landscape, might not shape the industry’s future according to at least one analyst. These companies, including Nintendo, Sony, and Microsoft, provide their own subscription plans where users gain access to a variety of games for a recurring fee, which is also necessary for online play. However, it seems that the growth rates of services like PlayStation Plus may not be as robust as they once were.

As a dedicated gamer, I’ve noticed a change in my wallet recently – both PlayStation Plus and Xbox Game Pass have increased their subscription prices in various regions over the past two years, with Xbox seeing an increase in 2024. Despite these price hikes, both platforms have still managed to deliver some fantastic new games and updates in recent months.

It’s intriguing to consider if this business model will continue to dominate the gaming landscape as initially anticipated, or if it may evolve differently than we once thought. Some experts are suggesting that the impact on the industry might not be as revolutionary as once predicted.

As an enthusiastic follower, I’d like to share my perspective on Mat Piscatella’s recent post on Bluesky. Being a video game analyst and the Executive Director at market research firm Circana, he expressed that PS Plus and Xbox Game Pass might not be the definitive future of the gaming industry. This comes in light of Sony withdrawing 22 games from PS Plus in May, including hits like Grand Theft Auto 5 and Payday 2. This reduction in game offerings raises questions about the future of subscription services, considering U.S. spending on these platforms has remained steady since a significant increase in 2020 and 2021, as per Piscatella’s observations.

Analyst Mat Piscatella Says Subscription Services Are Part of the Future but Not All of It

US spending on video game subscriptions had been basically flat for years following 2020-21 growth, only boosted by 12% in Q4 thanks to CoD going to Game Pass. Subscriptions are certainly not THE future of gaming (although they can continue to be part of it). — Mat Piscatella (@matpiscatella.bsky.social) 2025-04-27T19:14:33.105Z

Piscatella noted an increase in spending towards the end of 2024, largely due to the release of “Call of Duty.” The debut of “Black Ops 6” on Xbox Game Pass helped set a new quarterly revenue record for the service, causing a 2% rise in Xbox content and services earnings. However, this appears to be an unusual occurrence, as Piscatella didn’t completely dismiss subscription services. He explained that these platforms might continue to have significance in the gaming industry, but they may not be the primary factors shaping its future.

In reply to a comment on his initial post, Piscatella elaborated further by explaining that certain manufacturers are moving away from focusing on subscriptions, but some businesses continue to thrive with this model. Lately, the CEO of Rebellion has linked much of Atomfall‘s success to Xbox Game Pass, which expanded its reach among gamers. Nonetheless, it’s unclear how significantly services like Game Pass and PS Plus will expand in the future or how the gaming industry might evolve as a result.

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2025-04-28 23:24