A new report from the UK-based Juniper Research has suggested that video game subscription services, such as the likes of EA Play, PlayStation Now and Xbox Game Pass, will be responsible for a whopping $11 billion in revenue by 2025. This is up $4.4 billion from the original estimate of $6.6 billion from earlier this year.
$11 Billion? That’s A Lot Of Money
Yeah, Juniper reckon that subscription services will be a strong new source of revenue for an industry that’ll experience a revenue decline of around 3% over the next five years. The report, called Video Games: Industry Trends, Monetisation Strategies & Market Size 2020-2025, argues that PC based subscriptions will account for $5 billion in revenue alone.
This push regarding PC revenue will be led by publisher focused subscription services, similar to EA Play and Uplay+, as they’ll be able to make their biggest titles exclusive to their service. This is already true, as titles like FIFA 21 are available to play earlier via EA Play. The report also acknowledges that partnerships between services will exist, like EA Play and Xbox Game Pass Ultimate, but it won’t be the norm going forward.
It’s also worth mentioning that the report doesn’t see mobile gaming enjoying the same success. Despite being a booming market, they predict that mobile-based subscriptions will only account for less than 1% of the total revenue in 2025.
What About The Future Of Cloud Gaming?
Juniper predicts that cloud gaming will still struggle to gain a foothold going into the future, though it’s not for lack of trying. The research argues that the demand for cloud gaming is there with millions of gamers, but that there’s still an awareness issue that needs to be overcome. On top of that, slow data speeds in a variety of markets will stifle cloud gaming’s growth, with only 1% of active gamers to adopt the service by 2025.
Research co-author James Moar said the following about cloud gaming: “Cloud gaming is a highly concentrated market, with over 60% of anticipated subscriptions to be in the US and China. Targeting specific types of players in these markets will bring sustainable success, but awareness of cloud gaming outside of particular gamer segments will keep the market niche.”
Will Their Predictions Come To Pass?
How would I know? I’m not Nostradamus. It’s clear that video game subscription services like EA Play and Game Pass are a growth market, but the trouble with every publisher bringing out their own version is that gaming will become just as expensive as it once was. Right now, there’s enough subscriptions going to feel like you can get a good deal without drowning your Pile of Shame in more games, but adding more to the mix might cause the bubble to burst. Then again, I’m not the one charging nearly £3000 for a financial analysis report, so maybe don’t listen to me.
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