Data and analytics firm Circana has revealed that PS Plus and Xbox Game Pass spending has plateaued in the U.S. following a period of growth. This follows a Circana report in June that found players opting to buy new, full-priced games rather than spending money on subscriptions.
Has PS Plus and Game Pass novelty worn off?
It was recently reported that Sony has stopped sharing PS Plus subscriber numbers in its financial reports. The company didn’t address the report (and it’s unlikely to) but its most recent financial presentation was missing subscriber numbers.
According to Circana (via Games Industry), subscription spending has stalled due to a combination of factors including fatigue, less disposable income due to rising cost of living, slow adoption of cloud gaming, and “a strong slate of new premium releases.” 2023 has already seen a number of hit games, and the fall season is packed with highly anticipated games including Marvel’s Spider-Man 2.
In a separate report, Games Industry revealed that indie publishers like TinyBuild and Devolver have taken a hit due to weaker subscription deals with Sony and Microsoft. Goodbody analyst Patrick O’Donnell said that “checks coming from Sony and Microsoft are just not as big as they were,” indicating that the companies may be reining in their own spending on subscriptions.
