Are subscription services the future of the industry? This has been a question on the minds of many over the past few years. Platforms like Xbox Game Pass and PlayStation Plus have their advantages, but it seems that they are not ready to become the main way to consume this medium. Thus, an analyst has revealed that subscription services have stagnated.
This same week, Ubisoft noted that the future of the industry lies in streaming services and digital games, and that we will soon see a change similar to what happened with the film and music industries. However, Larian Studios, responsible for Baldur's Gate 3, have pointed out that platforms like Game Pass and PS Plus are a danger to creative minds, and they do not consider them a benefit. Given these two extremist positions, Mat Piscatella, Circana analyst, revealed the true state of this industry.
Through his official Twitter profile, Piscatella mentioned that subscription and streaming services have currently stagnated, and They only represent 10% of the income generated by players in the United States. This is what he said about it:
“Subscription growth has stagnated and subservices on console and PC platforms represent only 10% of total spending on video game content in the United States.
I understand that some people want to protect their preferred model, but the idea that submarines will become dominant is not supported by data.
Subs have been more additive than cannibalistic, giving players, developers and pubs more options on how to play or how to go to market. Fearmongering on this issue is quite unnecessary.”
Subs have been more additive than cannibalistic, and offer players, devs and pubs more choice in how to play or how to go to market. Fear mongering on this topic is quite unnecessary.
— Mat Piscatella (@MatPiscatella) January 17, 2024
Instead of falling into extremes, Piscatella has mentioned that subscription services are another complement. Yes, many users prefer to pay a monthly fee to have access to a huge list of games, but still others buy their physical or digital titles day one at full price. Unlike the film and music industries, where platforms like Netflix and Spotify have risen to the top, In video games this will not happen yet, and the data has indicated that we are very far from this happening, if it will happen.. On related topics, you can learn more about Ubisoft's statements here. Likewise, children prefer subscriptions to physical games at Christmas.
Editor's Note:
Subscription services are a complement and a way to access games quickly and easily, but they will not replace traditional purchases. This is a fact that companies have to understand, especially Xbox and Ubisoft, who seem to be changing their models to make this reality possible.
Via: Mat Piscatella
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