Games

An analyst sees services like Game Pass and PS Now unlikely to dominate the market

In the video game industry there has been a commitment to subscription services to access extensive catalogs of games: Microsoft with Xbox GamePassAmazon Moon, titles retro available on Nintendo Switch Online, the addition of games to Netflix, and the rumored Sony’s Project Spartacus are some examples.

It would seem that the way we acquire games is mutating, heading for a model similar to that of the cinema, the series television and music. However, Piers Harding Rolls, an industry analyst at Ampere Analysis, doesn’t think this will be the case, and recalls that most of the revenue comes from microntransactions.

Xbox GamePass

“I don’t think subscriptions will become the dominant monetization model in the gaming industry as it has progressively done in the video and music industries,” the analyst said in a statement. talk at the Game Developers Conference (GDC) 2022 as reported pc gamer. Harding-Rolls says that subscription services currently account for 4% of the total of the industry and predicts growth to 8.4% by 2027.

The analyst points out that most of the spending on video games does not come from buying them, but rather players spend on titles when they are already playing to them. According to data from Ampere Analysis, the 79% of spending on video games last year came from microtransactions both free games and paid games.

The subscription market, by the way, is dominated by Microsoft taking into account the dollars entered during the last quarter of 2021. The 60% of the total of that market corresponds to the different modalities of Xbox Game Pass. Followed by 9% Apple Arcade. Both Google Play Pass and PlayStation Now and EA Play each have 7%. Ubisoft Plus represents 4%; and the remaining 6% brings together other services.

Subscribers spend more on video games

Harding-Rolls explains another fact: subscribers to services such as PlayStation Now and Xbox/PC Game Pass spend more on average than other gamers on games, expansions, microtransactions and passes seasonal. There are several reasons. First, the users of those services try more games that sometimes have DLC, battle passes, etc. And second, those services they mainly attract players who already play to a lot of different games.

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