Game subscription services are now dominating the gaming market with giants like Xbox Game Pass and PlayStation Plus leading the way. It seems like this trend will only continue now that players are preferring the subscription service model over purchasing individual games.
A recent report by Omdia claims that the revenue from game subscription services will rise astronomically in the next few years. According to research, the earnings are estimated to exceed $22 billion by the year 2027. The gaming subscription revenue is currently estimated at $16 billion.
The report breaks down the estimated revenue by source. Games libraries like those features by Xbox Game Pass and PlayStation Pus will contribute the most to the revenue share. In-game subscriptions like Rockstar’s GTA Plus come in second with platform access subscriptions coming in third.
Video game companies are turning to the subscription-based model to increase their earnings year on year. Publishers are also now looking at live service offerings, spreading out content over a period of time to maximize profit. Games like Call of Duty and Diablo 4 offer Battle Pass, providing a steady stream of revenue throughout a game’s life cycle.
“Subscriptions have evolved into a cornerstone strategy for leading game companies, which increasingly emphasize expanded capabilities, exclusive content, and cross-platform accessibility,” Senior Principal Analyst at Omdia, George Jijiashvili said. “However, subscriptions’ role as the primary business model remains unproven. While offering a cost-effective and user-friendly experience, sustaining blockbuster game development within this model raises difficult financial questions. This further underscores our belief that, while subscriptions will continue to grow, they will not become the dominant business model for games but rather complement a diverse range of monetization approaches.”
The report also reveals that while Xbox and PlayStations game library services currently give the most revenue, cloud gaming will be one of the biggest segments in the next few years. It is estimated that cloud gaming subscriptions will generate up to $6.4 billion by 2027 and contribute 30% of the overall earnings of the market.
Cloud gaming is now very accessible for average consumers with the increased internet speed worldwide and access to capable devices. Apple’s current generation iPhone 15 is now even capable of playing AAA titles like Resident Evil 4 and Assassin’s Creed Mirage. The reliability of cloud gaming services has also been steadily improving, providing for smooth and enjoyable gaming experiences.
It should be interesting to see which video game companies enter the game subscription service sector next. We may be looking at a future where more big titles come to gaming subscription services on day one similar to Starfield. Will having more video game subscriptions be good for gamers? In the short term yes, only because of the accessibility of games. But it may eventually cost us more to get into subscription services as we can only play so many games at one time.
