According to a report published by the analysis company Omdia, written by analyst George Jijiashvili, i videogame subscription services like Game Pass and PlayStation Plus will achieve a turnover of 22 billion dollars annual by 2027. Currently the same is around 16 billion dollars.
The relationship divides the subscription market into eight segments, which include in-game subscriptions, cloud gaming and platform access. Inside you can read that: “Subscriptions have evolved into a fundamental strategy for major video game companies, which increasingly emphasize feature extension, exclusive content and cross-platform accessibility. However, the role of subscriptions as a primary business model remains unproven. Despite offering a convenient and user-friendly experience, sustaining successful game development within this model raises difficult financial questions. This further underlines our belief that while subscriptions will continue to grow, they will not become the dominant business model for video games, but rather will integrate a diverse range of monetization approaches.”
A subscription future?
The data available to Omdia speak of 92 million subscribers for the Xbox and PlayStation services. 30% of the market appears to be made up of internal game subscriptions. According to the company’s estimates, cloud gaming will generate 6.4 billion dollars by 2027.
In essence, the report underlines how the subscription market is becoming increasingly important for companies, but at the same time it should never become exclusive, i.e. it is unlikely to be able to supplant other business models, which it will instead end up alongside.
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