Why an Analyst Says PS Plus and Xbox Game Pass Aren’t the Future of Gaming

Subscription services like PlayStation Plus and Xbox Game Pass are quite popular in gaming circles today. However, some experts think they might not hold the future of the industry. These services offer users a variety of games for a monthly fee, which is also necessary for online play. Yet, recent trends suggest their growth has slowed.

For the second time in two years, PlayStation has increased PS Plus prices in several countries, with Xbox Game Pass following suit in 2024. Despite these price hikes, they’ve still managed to roll out some exciting updates and titles. This could imply that while the model isn’t fading away, it might not revolutionize the gaming landscape as many once thought.

Mat Piscatella, a gaming analyst at Circana, commented on Bluesky about this scenario. He pointed out that although subscription services are significant, they aren’t the sole future of gaming. His remarks came after Sony announced plans to remove 22 games from PS Plus in May, including well-loved titles like Grand Theft Auto 5 and Payday 2. Piscatella noted that spending on these services in the U.S. plateaued after a surge in 2020 and 2021.

Interestingly, there was a slight increase in expenditures toward the end of 2024, largely thanks to the launch of Call of Duty: Black Ops 6. The game’s release on Xbox Game Pass contributed to a record-setting quarter, marking a 2% rise in Xbox content revenue. Still, Piscatella believes that while subscription services will play a part, they won’t dominate the industry.

In response to further discussions, Piscatella mentioned that some companies are stepping back from focusing solely on subscriptions. Yet, there are still success stories, like Rebellion’s Atomfall, which gained much of its popularity through Xbox Game Pass. The question remains how these platforms will evolve and how the gaming industry will adapt in the future.