Subscription spending for video games in the United States has seen a decline, as services struggle to attract and retain new subscribers. While Xbox Game Pass, according to Phil Spencer, has remained profitable, it has reached its user peak and its long-term viability is now in question. One advantage that PS Plus has over Game Pass is its pricing discounts for annual subscriptions, making it more likely for players to subscribe sporadically to Game Pass, resulting in fluctuating numbers and stunted growth. Although Xbox Game Pass has been a great value for players, profits in 2023 seem to be pointing in another direction. The year has been marked by several highly successful releases such as Hogwarts Legacy, Tears of the Kingdom, Jedi: Survivor, and Diablo 4, both on digital and physical marketplaces. With several highly-anticipated games set to launch, including Final Fantasy 16, Baldur's Gate 3, Starfield, and Assassin's Creed Mirage, 2023 is likely to be remembered for its premium releases rather than subscription growth.
Despite the sluggish growth of subscription spending in April 2023, video game purchases have been thriving with record profits, even with the increase in price. While some players may have reservations about the $70 price tag for the latest Diablo installment, Diablo 4 has broken Blizzard records. The inclusion of Starfield in Game Pass from day one has raised questions about whether Phil Spencer is leaving money on the table, as it's possible that many PlayStation owners would have purchased the game if it had been released on all platforms like past Bethesda titles. In a landscape where video game companies are pushing to maximize their profits, intentionally keeping Game Pass consumer-friendly could be a positive strategy.
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With its affordable pricing, Game Pass subscription on PC is a tempting option for the average player who wants to play Starfield in September without spending $70 on a new release. As Microsoft acquires more companies, the Game Pass library will expand, making it an even more attractive option for gamers. However, the growth of its catalog may no longer be in sync with the number of users.