According to a recent analysis by Piers Harding-Rolls of Ampere Analysis, subscription services such as Xbox Game Pass and PS Plus make up only a small fraction of the gaming industry’s total revenue.
The analysis (reported by Axios) showed that subscription services collectively generate about $3.7 billion in the North American and European markets—representing only 4% of the total $81 billion spent on game discs, downloads, DLC, microtransactions and etc. This is in stark contrast to the music industry, where subscription services like Spotify account for 83% of the total revenue generated by the music environment.
Currently, Xbox Game Pass is clearly in the lead with around 60% market share and 25 million subscribers. Now that Sony has announced updated PS Plus offerings, it will be interesting to see what that picture looks like in a couple of years. Suffice to say, it’s still a long way to go before subscription services become a major shareholder in media-generated revenue.