Video game subscriptions are one of the fastest-growing segments within the gaming industry and are projected to have double-digit percentage growth from 2020-2021.
According to data presented by Safe Betting Sites USA, video game subscription revenue is projected to grow by 13,5% in 2021, reaching $7,47-billion. Revenue from video subscriptions is also projected to grow to over $11-billion by 2025.
Video game subscriptions such as Playstation Plus and EA Play have been around for some time but have recently become more and more popular. Over the last few years, video game subscription growth has outpaced single-game purchases and in-game purchases in terms of annual growth rate.
Revenue from subscriptions in 2021 is expected to reach $7,47-billion – a 13,5% YoY growth from 2020’s $6,58-billion revenue. The segment is projected to grow at a compound annual growth rate (CAGR) of 11,03% in the five-year period from 2020-2025 reaching over $11-billion in 2025.
The popularity of video game subscriptions can be partly attributed to the growing usage of cloud gaming. Cloud gaming gives users the ability to play games streamed from the cloud, allowing players to access their favourite games on their mobile devices.
Cloud gaming also offers players a plethora of games to choose from without using up their device’s memory.
Revenue from cloud gaming is projected to more than double in 2021, reaching $1,45-billion compared to just $633-million in 2020. Cloud gaming revenue is also expected to surpass the $5-billion mark in 2023 after experiencing a staggering compound annual growth rate of 88,51% from 2021-2023.
Rex Pascual, eSports editor at Safe Betting Sites USA, comments: “As technology advances and 5G implementation becomes more mainstream globally, the future of cloud gaming and video game subscriptions have never been brighter. The single-game business model is slowly being replaced by the more preferred subscription model which gives publishers a recurring stream of revenue and what they deem as a tighter hold on their user-base.”