PS Plus, Xbox Game Pass Spending Has Completely Plateaued in USA

Fenton

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data from Circana (formerly NPD) shows that consumer spending in the sector has completely plateaued.


While more and more people signed up to services like Xbox Game Pass during the pandemic, revenue has peaked at around $400 million per month – after first reaching that figure in November 2021, almost two years ago. Games Industry.biz elaborates: “Subscription fatigue, fewer available dollars for discretionary spending due to higher food and gas prices, slow mass market adoption of cloud gaming, and a strong slate of new premium releases may be contributing factors to the slowdown.”

 
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ethomaz

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Yeap it stagnated.

I'm not much into the Xbox side of things.
But like I pointed in previous earnings the PS+ revenue got a boost after the PS+/PS++PS+++ split (that meant people moved to higher tiers) but after that it showed similar numbers even with more PS5 reaching the market (that should have boosted the numbers of subscriptions).

And to be fair I believe it is the main drive of why the PS+ price is rising now... the quantity stopped to grow at fast pace so they had to find another way to boost revenue from subscriptions.

It is bad for consumers.
 
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Considering MS walked back their price increase when they got heat for it I would be worrying more about PS leadership and their plans to milk PS whales. Far more numerous. Obviously MS turned XBL Gold into Core and increased the pricing anyway but at least initially they retracted.

See no hints of PS walking back this recent price increase.
 

anonpuffs

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ChorizoPicozo

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MS should be in absolute Panic Mode if TileFilled doesn't substantially increase all metrics for the next quarter.
 

historia

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That why those fucking cunt Jim Ryan raised the price. Stupid aggnorant asshole, he is not any better than Filthy Phil.
 

Yurinka

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If we look at the graph of the worldwide PS+ data we see that the PS+ subscribers did stop growing when the consoles shortages started, and became stagnant during the shortages. Most of the new subbers sould be new console users, particularly those who didn't have a PS4 (which are a big percent of the PS5 users according to Sony):

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We also see in the graph that despite being flat in the number of subscribers, the release of the new PS+ caused a noticiable increase in the related revenue because millions of existing PS+ subbers migrated to higher, more expensive tiers.

The chart only covers until the end of March, but this year, speciallly in the 2nd half Sony is now able to ship consoles normally without being supply constrained by chip shortages, meaning they will sell way more consoles than in previous years, which also it's fair to assume that will also mean that the amount of subbers will grow again.

It's also worth mentioning that Sony no longer sells PS+ cards or PSN gift cards with discounts on external stores. Now if you find them they have the standard price.
 
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Johnic

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They are worth Trillions lol. They dont care. They just want to outlast the competition by outspending them
Xbox has been on the chopping block several times before. At some point the shareholders will want a return on their investment from that division. I have no idea how Spencer convinced Nadella to keep investing in it.
 

historia

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Xbox has been on the chopping block several times before. At some point the shareholders will want a return on their investment from that division. I have no idea how Spencer convinced Nadella to keep investing in it.
Max Chrisma points
 
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Fenton

Fenton

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Xbox has been on the chopping block several times before. At some point the shareholders will want a return on their investment from that division. I have no idea how Spencer convinced Nadella to keep investing in it.
This is what Nadella wants:

3 billion players across PC, Consoles, Mobile Devices, and Cloud by 2030.

 

Kokoloko

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Xbox has been on the chopping block several times before. At some point the shareholders will want a return on their investment from that division. I have no idea how Spencer convinced Nadella to keep investing in it.
I agree but I think Nadella is fully onboard with taking over the “living room” and willing to spend more. He just spend 80 billion like it was nothing And there not gonna stop. We’ll see how the board feels though.

I doubt Starfield will take Xbox or Gamepass to where they want and expect, I doubt it gives them the momemtum the fans have been saying since 2019 or whenever it was, which was meant to be kickstarted by Halo Inifinte.

Halo is dead for now, Call of Duty won’t be exclusive, Starfield isn’t the 2nd coming of Christ and Fable/Hellblade2/Avowed etc are gonna be cared about less than Starfield. There biggest IP, Elders Scroll 6 is probably 5 years away
 
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flaccidsnake

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I had Gamepass for a year and then cancelled it. I have a Steam backlog with more games than I'll ever have time to play. It makes no sense to pay for a subscription to MS' backlog.