• Ofer Zeevy

Subscriptions are on the rise for gaming companies

Netflix and Spotify changed the way consumers are paying for television and music. In recent times, it seems that more and more gaming services are following suit. Instead of consumers paying for single games, such as was the case when paying for a movie or a song, it is now all about paying a monthly subscription fee for a library full of gaming options. And while Game subscriptions currently account for only 4% of total player spending in the USA and Europe, it is estimated that gaming subscriptions will almost double, between 2020-2025, and reach $11 billion.


3D illustration for a subscription.

The two gaming leaders, Sony Playstation and Microsoft bring their heavyweight games into their subscription mix and offer very attractive packages. Playstation's new subscription service, for example, features hundreds of games as well as classic retro titles, while Microsoft’s Xbox Game Pass package offers a no-less attractive option for gamers. A slew of other gaming companies presents their own video games subscription services, trying to grab a share of this booming market.


The basic idea for all of these services is the same: package a library of popular video games, both old and new, for a monthly affordable subscription fee, and play as much as you like, If it worked for Netflix and Spotify, why not work for the much more successful, revenue-wise, gaming industry. The packages offered to subscribers work on a variety of platforms, making them more and more accessible and easy to use.


There are several consequences of the increasing subscription offerings from gaming companies. First, the market’s competition is getting tougher than ever, as companies are trying to improve their “gaming stickiness” measurements. Then, indie production companies that are not featured on such platforms may find it more difficult to survive in the market. In addition, the manufacturing future of console/hardware hosting platforms looks more questionable, but could still survive next to the streaming services thanks to some technical advantages.


For all of these reasons and more, it becomes more important for companies to follow gamers for not only what they play but also for what they say. As the focus in the gaming industry slowly shifts more towards subscription offerings on multiple devices, companies find it crucial to understand just how players are embracing such a change. Issues such as packages’ comparison, pricing, technical challenges, overall product as well as customer satisfaction, are always on the table for players to praise or complain about. And as they converse about their experiences constantly on many different forums and platforms, companies must track and analyze them for actionable insights.


Affogata monitors and analyzes player feedback and reports on just how they are embracing such a market change. If companies want to learn how players are perceiving their value packages and price offer, they can employ Affogata for an in-depth analysis of such strategic moves.


Niche game review sites and player forums include valuable pieces of information from players, but since such data contains millions of feedback comment points, the tracking and analyzing of such data becomes a challenge for companies. Using AI-powered player feedback platforms makes the collection and analysis process much clearer and faster so that the gaming companies can learn how their as well as their competitors’ games are performing. Such a data analysis can then make it easier for them to decide what their next market moves would be.


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