Sign in to your Game Rant account
U.S. video game subscription spending reportedly reached an all-time high of $600 million in May 2025, driven by Xbox Game Pass and several other services. While the record figure helped offset marginal declines in other segments, the overall spending on the likes of PlayStation Plus and EA Play still amounts to only a fraction of the stateside gaming market.
Mainstream video game subscription services have existed in some shape or form since 2002, when Microsoft launched its recently retired and replaced Xbox Live Gold platform. As of mid-2025, the market segment has largely matured, with recent industry reports indicating a slowdown in growth.
Related
Arkane Studios Founder Throws Shade at Xbox Game Pass
As the gaming industry reels from the effects of the Xbox layoffs, the founder of Arkane Studios chimes in with a certain take on the Xbox Game Pass.
Despite signs of deceleration, the sector continues to expand, with the latest report from Circana Executive Director Mat Piscatella indicating that the niche has recently reached new heights. In May 2025, U.S. video game subscription spending hit $600 million for the first time ever. That’s a roughly 29% increase over the same period a year earlier, when spending on non-mobile subscription services totaled around $465 million. The figure also marked the third consecutive month of growth for stateside subscription service spending.
Subscription Services Growth Offset Gaming Hardware Decline in May 2025
The overall spending on gaming content—games, DLC, and subscriptions—was in the ballpark of $3.73 billion during the observed period, a 2% year-over-year increase. At the same time, Circana’s data suggests that gaming hardware and accessories sales declined by 13% and 6% annually, respectively. Despite these drops, total gaming spending in May still rose by 1%, surpassing $4.05 billion. The data thus suggests that growth in subscription spending helped offset declines in other segments, even though it only amounted to just over 16% of overall gaming spending. June’s figures are expected to show stronger hardware performance, following the record-breaking release of the Switch 2, believed to be the biggest console launch to date.
U.S. Video Game Spending in May 2025, According to Circana
|
Segment |
Spending |
YoY Change |
|---|---|---|
|
Games, DLC, and subscriptions |
$3.726b |
+2% |
|
Hardware |
$0.172b |
-13% |
|
Accessories |
$0.154 |
-6% |
|
Total |
$4.052b |
+1% |
Looking at the broader context, the long-term role of subscription services in the future of gaming remains uncertain. Piscatella himself recently expressed skepticism about their potential to become the market’s primary growth driver, while acknowledging that they can still have a significant part to play. Still, as the average price of games continues to rise, many consumers may increasingly turn to services like Xbox Game Pass and PlayStation Plus in search of greater value.
However, there are limits to how much growth these platforms can ostensibly sustain in their current form. Platform exclusivity, content quality, and consumer fatigue all present challenges that could continue slowing down adoption, especially now that the market is at an all-time high and showing clear signs of maturing, at least as far as the U.S. is concerned.
