What does the future look like for game subscription services like Xbox Game Pass? Pretty good, according to technology research and advisory group Omdia, which shared new projections today that reveal the global game subscriptions market is set to surpass $22 billion by 2027. The predicted growth of game subscription services that provide Netflix-style access to a selection of titles (e.g., Game Pass) can be observed in a chart that Omdia shared, which shows the relevant segment, “games library,” growing consistently in the years ahead. Microsoft and Sony’s services already boast a combined number of 51 million subscriptions, according to the research company.
“Subscriptions have evolved into a cornerstone strategy for leading game companies, which increasingly emphasize expanded capabilities, exclusive content, and cross-platform accessibility,” commented George Jijiashvili, Senior Principal Analyst, Omdia. “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.”
Three main categories of subscriptions are analyzed: Games library services offering Netflix-style access to a selection of titles, which have a share of 44% ($7.3bn) in 2023, in-game subscriptions within individual games with 30% ($4.8bn), and platform access subscriptions primarily giving access to online features instead of a large games library with 26% ($4.3bn). A further eight sub-categories, eight companies, and ten services are included in the full forecast. The total number of paid subscriptions is set to reach 175 million at the end of 2023, growing to 217 million by 2027 – this excludes subscriptions within individual games.
Microsoft and Sony lead the charge in games library services, collectively boasting 51 million subscriptions. Services offering cloud gaming are projected to generate $3.6bn in 2023 and grow to $6.4bn by 2027. This growth will be primarily driven by ‘cloud-enabled’ games library services Xbox Game Pass Ultimate and PlayStation Plus Premium, as opposed to cloud-only services like Amazon Luna+, which will account for just 5% of the total subscriptions revenue by 2027.
