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03/29/2022 1:05 pm
With the great focus that companies like Xbox and PlayStation put on their subscription services, one might think that the revenue generated in this market is quite high. However, a new report has pointed out that earnings related to GamePass and PS Now they only correspond to 4% of what we usually see in a year in the United States and Europe.
According to research by Ampere Analysis fellow Piers Harding-Rolls, subscription services alone generate $3.7 billion in the US and Europe. By comparison, earnings related to disc sales, downloads, DLC and digital purchases, correspond to $81 billion dollars in the same regions.
Of this group, Game Pass is, without a doubt, the most successful. Harding-Rolls claims that Xbox subscription occupies 60% of the market related to video games. However, with just 25 million users as of 2017, and close to 500 games available, this service still falls short of Spotify and Netflix, which dominate their respective music and movie markets.
Despite these data, the industry continues to move in this direction. A new PS Plus was revealed today, which works in three different categories, each offering different benefits and different prices. You can learn more about this improved version of the service here. Similarly, these will be the prices of the new PS Plus in Latin America.
Editor’s Note:
While it is true that services like Xbox Game Pass will surely not be at the level of Netflix or Spotify, these are different markets, with forms of consumption that are not alike. What is striking is that the earnings are very low, which makes sense when there are not many success stories at the moment.
Via: Axios.