In the world of gaming today, PlayStation Plus and Xbox Game Pass have become household names. Yet, there’s a growing belief that they might not be the industry’s future. Big players like Nintendo, PlayStation, and Xbox offer subscriptions that provide a rotating roster of games for a fee, which also covers online play. However, it seems these subscription models may not be expanding as expected.
Recently, PlayStation has hiked PS Plus prices in several countries for the second time in just two years, and Xbox Game Pass fees are set to rise in 2024. Despite these increases, both platforms continue to roll out exciting new games and updates. While this model isn’t disappearing anytime soon, some industry watchers argue it might not revolutionize gaming as previously anticipated.
Mat Piscatella, an analyst and Executive Director at Circana, expressed his views on Bluesky, stating that PS Plus and Xbox Game Pass aren’t destined to become the gaming sector’s mainstay. His comments came after Sony announced it would be removing 22 games from PS Plus, including hits like Grand Theft Auto 5 and Payday 2. According to Piscatella, U.S. spending on these services has plateaued since the surge seen in 2020 and 2021.
He did note a spending uptick in late 2024, driven by Call of Duty’s launch, with Black Ops 6 on Xbox Game Pass breaking revenue records for the quarter and boosting Xbox’s income by 2%. However, this seems to be more of an exception than a trend. Piscatella doesn’t dismiss subscription services altogether; he believes they’ll play a role in gaming’s future but not the leading role.
In response to comments, Piscatella explained that some companies are veering away from aggressive subscription pushes, while others still thrive using this model. Interestingly, Rebellion’s CEO credited the success of Atomfall to Xbox Game Pass, which broadened the game’s audience. Ultimately, it remains uncertain how much further platforms like Game Pass and PS Plus will grow and how the broader industry will evolve.
