Growth Slows for Xbox Game Pass and PS Plus in the US

According to Circana, American consumer spending on subscription services like Xbox Game Pass and PS Plus grew by only 1% in April this year compared to last year, with an overall two-year increase of just 2%. This indicates a potential slowdown in the sector.

Market leaders Microsoft and Sony have encountered similar issues. Despite price hikes for their subscription services, their revenues have remained static, suggesting a drop in user engagement.

Xbox Game Pass has not met growth targets since 2022, and while subscriber numbers have slightly increased since then, the data raises concerns among analysts about the future growth prospects of the service. The latest financial report adjusted the number of Game Pass subscribers by including users from the rebranded Xbox Live Gold, now known as Game Pass Core, complicating data interpretation.

These trends raise doubts about the long-term viability of subscription models as the predominant method of game distribution.