Video Game Subscription Services Market Size (2023 – 2030)

The Global Video Game Subscription Services Market was valued at USD 9.98 billion and is projected to reach a market size of USD 21.24 billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 9.9%. 

Video games were popular among users before the advanced digital era and have been catering to a wide range of gaming audiences. The early video game subscription services were started by Xbox and PlayStation, and later the market developed with various emerging gaming platforms offering different types of subscription plans to the gamers. In addition, the number of gamers increased in the past decade, further increasing the demand for video game subscription services in the market. Moreover, these subscription plans offered players access to a vast library of games on a monthly, quarterly, or annual basis. However, recent trends in a pay-as-you-go subscription model have increased the demand for specific and personalized gaming demand by players. Moreover, technological advancements in console and PC games such as the advent of AR and VR gaming have further increased players’ online engagement and increased the demand for VR-enabled console games. The future holds positive for the video game subscription services market, as the gaming industry witnesses technological transformation such as AI gaming consoles, AI gaming ecosystems, and others.

Key Market Insights:

• Indian gaming market stood at US$2.6 billion in 2022, with a CAGR of 27%, as released by the India Gaming Report FY 2022 of Lumikai (a gaming & and interactive media fund)

• As per ESA (Entertainment Software Association), 66% of Americans, that is 215.5 million play video games.

• According to the All Correct Games Company report for the gaming market in China, the game market revenue was US $ 90.2 billion in the year 2022, in China.

• Additionally, 300 million women in China play video games.

• As per the Entertainment Software Association, 70% of players prefer playing games on smartphones in the USA.

Video Game Subscription Services Market Drivers:

The rising influence of gamers on social media has boosted the market for video game subscription services.

With the increase in the use of the internet and smart devices, there is an increase in the number of gamers online, which has also increased the presence of gamer influencers on social media. Many gamers have become live game streamers on social media platforms such as YouTube, Facebook, and others that attract other players. Moreover, many videogame companies collaborate with these influencers to promote their subscription services via live streaming and ad campaigns. This has influenced consumers’ buying decisions considerably and increased player engagement on social media platforms. In addition to this, many gamer influencers have created gaming communities that allow other players to join and collaborate on gaming platforms together, thus raising the number of video game subscribers.

The increasing youth population has boosted the demand for video game subscription services in the market.

Studies show that the gaming industry is deeply affected by demographic factors that is the young population has contributed to the growth of video game subscription services in the market. As per UNFP Org (United Nations Population Fund), there are more than 1.8 billion young people in the world, of which 90% belong to developing countries such as China and India. Moreover, the young generation being digitally and technologically savvy, are more comfortable with virtual gaming platforms as compared to other age group. In addition, the young consumer segment is the major user of console and PC games, thus increasing the demand for video game subscription services in the market.

Video Game Subscription Services Market Restraints and Challenges:

Device compatibility issues can reduce the demand for video game subscription services in the market. Many video games are incompatible with certain mobile or PCs; or are incompatible with software versions of these devices, which can deter gaming experience and decline the demand for video game subscription service in the market.

Data privacy issues can decline the demand for video game subscription services, as games collect personal data for various purposes such as for advertising and personalization services, which can lead to unauthorized access to players’ data, cyber threats, phishing attacks, and others.

Video Game Subscription Services Market Opportunities:

The Global Video Game Subscription Services Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, increasing gaming communities and continuous technological innovations in the gaming industry are predicted to develop the market for video game subscription services and enhance its future growth opportunities.

VIDEO GAME SUBSCRIPTION SERVICES MARKET REPORT COVERAGE:

Video Game Subscription Services Market Segmentation: By Platform

• PC Gamers

• Mobile Gamers

• Console Gamers

In 2022, based on market segmentation by platform, mobile gamers occupy the highest share of about 23.4% in the market. Mobile gamers typically include games that are played on smartphones or tablets. The segment growth is attributed to rising smartphone users and increased internet penetration in the market. Moreover, mobile gaming allows players greater flexibility and easy accessibility to play a wide variety of games by just utilizing touchscreen controls. In addition, players can easily update the gaming app and make in-app purchases without the need for a physical upgrade of hardware.

The PC gamers segment is the fastest-growing segment during the forecast period. PC gamers include playing games on the desktop or laptop. Moreover, players can gain better access to various games, as desktops/laptops offer them increased storage space and better controlling capabilities. In addition, players get a vibrant and colorful gaming experience on a relatively bigger screen. Furthermore, an increase in the number of PC gamers has induced manufacturers to make specialized gaming laptops with increased processor speeds and storage space that provide a seamless gaming experience.

Video Game Subscription Services Market Segmentation: By Subscription Model

• Basic

• Premium

• Pro

In 2022, based on market segmentation by the subscription model, the premium segment occupies the highest share of about 22% in the market. The premium segment is a paid version of a video game and offers access to larger and more specialized games to players. Moreover, players can get early access to newly launched games before others. The subscription for this segment is mostly annually, however, some users choose quarterly or monthly subscription models based on their gaming requirements.

The basic segment is the fastest-growing segment during the forecast period. The basic subscription is usually free or offers subscription services at a very affordable price. Moreover, players with this gaming subscription can get access to limited games and is mostly suitable for gamers with a limited budget. In addition, players with specific gaming requirements prefer the basic subscription model. The subscription is mostly monthly or quarterly, however, some gaming platforms offer basic pay-as-you-go subscription plans that allow players to pay only for those games that they want to play, without paying for a long-term subscription plan.

Video Game Subscription Services Market Segmentation: Regional Analysis:

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

In 2022, based on market segmentation by region, North America occupies the highest share of about 29.5% in the market. The wide presence of games and gaming communities; and the booming Xbox and PC gaming market have contributed to the demand for video game subscription services in the market.

Asia-Pacific is the fastest-growing region during the forecast period. The rapidly booming gaming industry with increased emphasis on mobile gaming and console gaming; and the rising social media influence of gamer influencers have contributed to the demand for video game subscription services in the market.

COVID-19 Impact Analysis on the Global Video Game Subscription Services Market:

The pandemic had a significant impact on the video game subscription services market. Due to the pandemic, people spent most of their time at home watching TV, browsing on internet, or playing games, which boosted the demand for video game subscription services in the market. Moreover, increase in the internet and mobile usage during the pandemic surged the demand for video game subscription services, especially the demand for basic subscription plans. Moreover, there was an increase in demand for online multiplayer games, as it allowed players to connect with their friends and families, thus improving social interactions with each other amidst the pandemic.

Latest Developments:

• The video game subscription services market has witnessed an upward trend in recent times due to continuous technological innovations and launches by gaming and tech companies. Major gaming companies have now expanded their subscription services with cloud gaming platforms that allow players to play both new and old games on their devices. Moreover, emerging game tech start-up companies are further shaping the market for video game subscription services with their vast library of new and attractive games, and flexible subscription models such as the D2C model or technology as a service model. Moreover, trends in AR/VR gaming, AI game ecosystems, and cloud gaming are likely to develop the market for video game subscription services.

• In June 2023, Meta launched Quest+ gaming subscription services for its VR headsets. The subscription is applicable for users with Quest 2 and Quest Pro and will be priced at $7.99 per month or $59.99 annually. Moreover, the user will get access to two hand-picked VR titles every month and new and back catalogs of VR games. Additionally, the subscription service will also be available for upcoming Quest 3 users.

• In June 2022, Sony's new subscription service in North & and South America for PlayStation Plus.  The new subscription model charges monthly fees to players and has a separate platform for cloud gaming and PlayStation Now. Moreover, the model allows players to switch over higher tier, that is from PlayStation Plus to PlayStation Plus Essential, without paying extra subscription fees.

Key Players:

1. Xbox (Microsoft Corporation)

2. PlayStation Now (Sony Corporation)

3. Nintendo Co. Ltd

4. Apple Arcade (Apple Inc)

5. Google LLC

6. Vortex

7. Shadow Tech

8. Tencent

9. Amazon

10. Ubisoft