Matt Piscatella: Subscriptions account for 10% of console and PC game revenue in the United States

The growth rate of revenue from subscriptions has slowed down. This was stated by Mat Piscatella, executive Director and analyst at Circana (formerly NPD).

Now, according to him, in the United States, subscription services directly account for "only 10% of total spending on video games in the United States."

Piscatella's words were a response to yesterday's statement by the head of Larian Studios, Sven Vincke, that the industry would suffer if subscriptions became the dominant model.

"Whatever the future of video games, content will always be at the forefront. However, it will be much more difficult to get good content if subscriptions win, and a limited group of people will decide what the market needs. Directly from the developer to the players — this is the way," Vinke wrote.

"It is almost impossible to convince the board of directors to launch a project based on idealism. Idealism needs space to exist, even if it can lead to disaster. In turn, the subscription model always boils down to an assessment of costs and an analysis of potential benefits. Both the first and the second are designed to maximize profits," the game designer revealed his position, at the same time stating that Larian Studios games will never appear in subscription services.

Piscatella does not share Vinke's position: "I understand that some want to protect the preferred model, but the idea that subscriptions can become the dominant model is not supported by the numbers."

"Subscriptions are more about addiction rather than cannibalization. They offer players, developers and publishers more options in how to play and how to enter the market. It is not necessary to escalate this issue," the analyst stressed.

This discussion would not have flared up if, a few days ago, Ubisoft subscription director Philippe Tremblay had not stated that it was time for players to abandon the idea of owning games. They say that subscriptions are the future.

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