According to a recent report from gaming consumer data company Circana, subscription spending in the U.S. has hit an all-time high for a single month. This trend marks the third consecutive month where gamers are shifting their preferences towards subscription services such as Xbox Game Pass, choosing them over purchasing individual games. The report, published online by Mat Piscatella, Circana’s video game industry analyst and Executive Director, covers gaming activity during May of this year.
According to Piscatella, American gamers spend approximately $0.6 billion each month on gaming subscriptions. He also suggested that the trend could be due to consumers seeking out products offering the greatest perceived value, as a result of rising prices in the overall economy.
In May 2025, the United States saw a record-breaking monthly high of $0.6 billion in video game subscription spending, marking its third straight month of growth. This surge might be attributed to rising costs in everyday expenses such as food and general economic instability, causing people to seek value for their money.
— Mat Piscatella (@matpiscatella.bsky.social) 2025-07-09T13:23:54.142Z
It seems this report highlights a fresh development that goes against previous assumptions. Previously, in April, Piscatatella expressed doubts about subscriptions, sharing his skepticism on the social media platform Bluesky, stating that they might not be the future of gaming.
According to Piscatella, the spending on video game subscriptions in the U.S. had remained relatively stable after a surge in 2020-21, with an increase of just 12% in Q4 mainly attributed to Call of Duty joining Game Pass. However, it’s important to note that subscriptions are not the sole future of gaming; they may still play a role but not dominate the industry.
The future of this increase in subscription costs is uncertain, but the trend indicates a likely continuation. Critics often question the financial success of subscription services such as Xbox Game Pass, and doubts about its true profitability remain prevalent today.
If the ongoing move towards subscribed gaming models persists, it could unwittingly bring about effects that impact not only game developers and publishers but also players as well.
In May, Microsoft encountered protests calling for a boycott against Xbox Game Pass due to announced price hikes for its consoles and games, as well as the shutdown of Tango Gameworks, creators of the popular rhythm-action game “Hi-Fi Rush.” As an increasing portion of the gaming industry relies on subscription services, gamers hold more power than ever before. They can influence where their money goes by simply switching their subscriptions in response to boycott threats from big gaming companies.
Yet, it’s important to acknowledge that gamers may also have valid concerns regarding the current trend in the gaming industry. As an influx of live-service and digitally-licensed games take center stage, players are finding themselves subject to the decisions of major publishers who retain the power to discontinue these games at their discretion, leaving players potentially high and dry.
In January of this year, Electronic Arts temporarily halted operations for 13 separate games, and they’ve recently announced on their shutdown notice that Anthem, their multiplayer shooter game, will cease operation in 2026. It seems that the closure of game studios is becoming more frequent, and the recent layoffs within the industry have left many questioning what the future holds for gaming.
Game development is a complex process that requires substantial investment of time and resources. Even large and small studios struggle to adapt quickly to changing consumer spending trends. This means that games, whether they are AAA or indie, can take years to produce but may not always provide the best value for players when they’re released. With the rise of live-service subscriptions, it seems we might be entering an era where these subscription models dominate the gaming landscape. However, there remains a space for dedicated developers to create engaging and innovative gameplay experiences as we saw in the 2010s.
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2025-07-10 01:39