Subscription-based businesses have expanded significantly, growing at an annual rate of 200% over the past seven and a half years. Consumers now subscribe to an average of twelve different services, with a majority preferring access over ownership. In gaming, major companies such as Apple, Microsoft, Sony, and Nintendo offer subscription services, but these models face challenges in justifying their value to players.

Cost to Watch the Top 5 Shows on Netflix

The Cost-Benefit Challenge in Gaming Subscriptions

Comparing gaming subscriptions to over-the-top video streaming platforms highlights a key issue. Subscribers of platforms such as Netflix and Hulu typically consume around sixty hours of content per month across multiple titles. Meanwhile, gamers spend a similar amount of time playing but focus on only four to five games per year. For video streaming platforms, purchasing individual titles is significantly more expensive than a subscription. Watching the top five non-exclusive Netflix shows individually would cost more than $125.95, whereas a monthly Netflix subscription is $17.99. In gaming, however, subscription services do not always offer equivalent savings since players tend to invest in long-term gameplay within a few select titles.

Steam Users Play Only 4 Games a Year

Challenge of Long-Term Engagement

Two main factors contribute to the difficulty in justifying game subscriptions. First, gamers tend to play the same titles for extended periods rather than constantly seeking out new games. Second, the industry has seen the widespread adoption of the free-to-play model, making paid subscription services less attractive.

The increasing shift toward live-service and multiplayer formats has led to long-term player engagement with specific games. Unlike movies or television shows, which provide a consistent and finite experience, games offer unique and evolving gameplay with every session. For example, Call of Duty: Black Ops 6 launched with extensive customization options, multiple game modes, and dynamic multiplayer interactions.

Top Games in a Given Year?

This variety enables players to engage with the same title for an extended period, reducing the need to explore new games frequently. A 2024 report from Matthew Ball illustrates this trend, revealing that of the top twelve best-selling premium games of the year, only two were available through a subscription service. The total cost of purchasing these games individually amounted to $849.88, averaging $70.82 per month if played sequentially. Despite this high cost, most gamers do not engage with that many different premium titles annually.

The most popular games in 2024 reaffirm the challenge for subscription services. Leading PC and multi-platform titles include Fortnite, Minecraft, Roblox, League of Legends, and Counter-Strike 2. With the exception of Minecraft, all of these games operate on a free-to-play model. The only paid title, Minecraft, has not been among the top ten best-selling packaged games since 2014, despite being added to Xbox Game Pass in 2019. The data suggests that many of the most played games do not rely on subscription models for their success, making it more difficult for game subscription services to attract and retain players.

Availability of the Top 12 Games of 2024

The Future of Game Subscription Services

For game subscription models to remain viable, providers must adapt to changing consumer behaviors. Offering exclusive content could increase the appeal of subscriptions, particularly through first-party or timed-exclusive games that cannot be accessed elsewhere. Additionally, providing enhanced benefits for free-to-play games, such as in-game currency, skins, or premium battle passes, could make subscriptions more attractive. Expanding the game library with a wider selection of titles could also add value to these services. Furthermore, integrating non-gaming perks, such as entertainment or cloud services, may provide additional incentives for players to subscribe.

Final Thoughts

Game subscription services face significant challenges in attracting subscribers due to player habits that favor long-term engagement with specific titles and the dominance of free-to-play models. To remain relevant, these services must evolve by focusing on exclusivity, additional benefits for free-to-play games, larger game libraries, or even perks outside the gaming industry. Without such innovations, the value proposition of game subscriptions will continue to diminish for both players and developers.

Source: Konvoy