Omdia research projects game subscriptions revenue to surpass $22 billion by 2027

[Gamernyc78]

Omdia research projects game subscriptions revenue to surpass $22 billion by 2027

/PRNewswire/ -- New research from Omdia reveals that the global game subscriptions market is poised to reach record heights, with revenue anticipated to exceed...

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Omdia research projects game subscriptions revenue to surpass $22 billion by 2027

USA - English​

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19 Oct, 2023, 12:02 ET

LONDON, Oct. 19, 2023 /PRNewswire/ -- New research from Omdia reveals that the global game subscriptions market is poised to reach record heights, with revenue anticipated to exceed $22bn by 2027, or 11.6% of the total global spend on games. Following unprecedented growth in 2020 and 2021, games subscriptions plateaued in 2022 in line with broader market trends. However, a resurgence is anticipated in 2023, with a projected 10.9% growth, reaching $16bn.

Omdia Game Subscriptions and Cloud Gaming Market Forecast 2023

Omdia's Game Subscriptions and Cloud Gaming Market Forecast provides comprehensive insight into all types of game subscriptions and offers detailed sizing and projections for 43 markets. Three main categories of subscriptions are analyzed: Games library services offering Netflix-style access to a selection of titles, which have a share of 44% ($7.3bn) in 2023, in-game subscriptions within individual gameswith30% ($4.8bn), and platform access subscriptions primarily giving access to online features instead of a large games library with 26% ($4.3bn). A further eight sub-categories, eight companies, and ten services are included in the full forecast. The total number of paid subscriptions is set to reach 175 million at the end of 2023, growing to 217 million by 2027 – this excludes subscriptions within individual games.

Microsoft and Sony lead the charge in games library services, collectively boasting 51 million subscriptions. Services offering cloud gaming are projected to generate $3.6bn in 2023 and grow to $6.4bn by 2027. This growth will be primarily driven by 'cloud-enabled' games library services Xbox Game Pass Ultimate and PlayStation Plus Premium, as opposed to cloud-only services like Amazon Luna+, which will account for just 5% of the total subscriptions revenue by 2027.

"Subscriptions have evolved into a cornerstone strategy for leading game companies, which increasingly emphasize expanded capabilities, exclusive content, and cross-platform accessibility," commented George Jijiashvili, Senior Principal Analyst, Omdia. "However, subscriptions' role as the primary business model remains unproven. While offering a cost-effective and user-friendly experience, sustaining blockbuster game development within this model raises difficult financial questions. This further underscores our belief that, while subscriptions will continue to grow, they will not become the dominant business model for games but rather complement a diverse range of monetization approaches."

ABOUT OMDIA:
Omdia, part of Informa Tech, is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.
Fasiha Khan, [email protected]
Photo - https://mma.prnewswire.com/media/2252238/Omdia_Game_Subscriptions_Cloud_Gaming_Market.jpg

SOURCE Omdia

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Omdia research projects game subscriptions revenue to surpass $22 billion by 2027​

New research from Omdia reveals that the global game subscriptions market is poised to reach record heights, with revenue anticipated to exceed $22bn ...
https://www.prnewswire.com/news-rel...ication-development-bottleneck-301958724.html

 

[KiryuRealty]

ROFLMAO

What, is Microsoft going to jack the price up to $10000 a year for the dwindling pile of idiots who subscribe?

 

[Gamernyc78]

ROFLMAO

What, is Microsoft going to jack the price up to $10000 a year for the dwindling pile of idiots who subscribe?

I read the article, and it talks about any type of subscription, including in-game subscriptions such as Fortnite packages, Roblox, EA fc coins, GTA among others, nowadays they talk about US$ 16 billion with these transactions, and US$ 22 billion in 2027,

 

[Bryank75]

I could only see this if they increase the prices of games for purchase and only leave people with subscriptions as the economical final choice before having to quit.

Personally, I'd rather quit gaming than not own my games though.

 

[Gamernyc78]

I could only see this if they increase the prices of games for purchase and only leave people with subscriptions as the economical final choice before having to quit.

Personally, I'd rather quit gaming than not own my games though.

GaaS is included in these projections and I bet their banking on a whole lot of more GaaS games coming in the market.

 

[Bryank75]

GaaS is included in these projections and I bet their banking on a whole lot of more GaaS games coming in the market.

Quite likely but it's hard to predict trends...where they will begin or end. I believe more in setting your own trends, rather than jumping on one that has already begun.

 

[Zeno]

And gamers all over the world cheering on because they no longer have to pay 70$ for a game.

Better to pay for a monthly subscription which increases every few years, just like Netflix. Here comes another Netflix price hike. Amazing.

After all, Netflix is known for their quality.

Future of gaming is looking so bright, consolidation, micro transactions, live service.

Let’s best cheer for these huge companies to reach their $22 billion goal in 2027.

/s

 

[Gamernyc78]

Quite likely but it's hard to predict trends...where they will begin or end. I believe more in setting your own trends, rather than jumping on one that has already begun.

Oh absolutely! Especially GaaS where there are infinitely more failures than successes.

 

[Alabtrosmyster]

I read the article, and it talks about any type of subscription, including in-game subscriptions such as Fortnite packages, Roblox, EA fc coins, GTA among others, nowadays they talk about US$ 16 billion with these transactions, and US$ 22 billion in 2027,

I wonder how many people have paid $10 - $15 a month for WoW since it launched almost 20 years ago! I know some people who still do it intermitently...

 

[Gamernyc78]

And gamers all over the world cheering on because they no longer have to pay 70$ for a game.

Better to pay for a monthly subscription which increases every few years, just like Netflix. Here comes another Netflix price hike. Amazing.

After all, Netflix is known for their quality.

Future of gaming is looking so bright, consolidation, micro transactions, live service.

Let’s best cheer for these huge companies to reach their $22 billion goal in 2027.

/s

I switched to lowest tear after the last hike and now I'm ditching Netflix completely after this one. The thing is the latest Financials state they made like 8 billion in revenue with 4 billion profit so wtf are you raising prices? Because it's stagnant? Foh thts not my fault, reach other markets.

I have my fire stick hooked up with kodi so fuck them! I'll still watch their shows.

 

[Gamernyc78]

I wonder how many people have paid $10 - $15 a month for WoW since it launched almost 20 years ago! I know some people who still do it intermitently...

I don't know but I know in the inceotion of Fortnite I never missed getting a battle pass and Warzone as well.

 

[ethomaz]

 

[Yurinka]

Omwho? First time I heard about this people.

But if the numbers from 2017 to 2022 are real or a decent estimation (I don't remember what the percentage of the total gaming revenue were from the game subs, I'd say it was around 7-15% of the total gaming revenue), something I wouldn't bet on it, then the projection until 2027 would be correct.

Also, I don't get what they exactly mean with these categories

 

[Kokoloko]

Sounds like Phil’s money is paying for that title at least lol.

Title and artle dont exactly match

 

[Alabtrosmyster]

Sounds like Phil’s money is paying for that title at least lol.

Title and artle dont exactly match

I don't see how, gamepass has stagnated for years now.

So maybe they think Sony/Nintendo/others will make a breakout in that field?

There is money to be made there, but I don't know what is the ceiling. I suspect we are close to it, given the amount of people who play service games like fortnite and whatnot, these gameers have no use for that kind of service.

Also, the latest big AAA games are all pretty long, even the linear ones. If you play one game for a long time, that kakes registration to a service like that much less interesting, unless it's rather cheap (which none of the providers understand, Sony, MS, Netflix or the others, they all want to raise their prices).

So these services may end up losing clients because their offer makes less and less sense.

 

[Gamernyc78]

I don't see how, gamepass has stagnated for years now.

So maybe they think Sony/Nintendo/others will make a breakout in that field?

There is money to be made there, but I don't know what is the ceiling. I suspect we are close to it, given the amount of people who play service games like fortnite and whatnot, these gameers have no use for that kind of service.

Also, the latest big AAA games are all pretty long, even the linear ones. If you play one game for a long time, that kakes registration to a service like that much less interesting, unless it's rather cheap (which none of the providers understand, Sony, MS, Netflix or the others, they all want to raise their prices).

So these services may end up losing clients because their offer makes less and less sense.

They are banking on new gaas games or any new subscription services.