A new report from video game consumer data firm Circana shows that subscription spending in the United States has reached a new monthly high. This spending behavior follows a consecutive three-month trend, where players are increasingly turning to subscription services like Xbox Game Pass to scratch their gaming itch rather than spending on stand-alone games. Mat Piscatella, video game industry analyst and Executive Director at Circana, reacted to the report online, which covered the month of May of this year.

Piscatella confirmed that US gaming subscription spending reached $0.6 billion monthly and speculated that generally higher prices in the economy are driving gaming consumers towards products with the best value perception.

This report appears to capture a relatively new trend that contradicts earlier findings. Back in April, Piscatatella was pessimistic about subscriptions, posting on the social media platform Bluesky that he was skeptical of them being the future of gaming.

“US spending on video game subscriptions had been basically flat for years following 2020-21 growth, only boosted by 12% in Q4 thanks to [Call of Duty] going to Game Pass,” wrote Piscatella. “Subscriptions are certainly not THE future of gaming (although they can continue to be part of it).”

It’s unclear whether this rise in subscription spending will continue, but the current trajectory suggests that it will. Subscription services like Xbox Game Pass have long been criticized for their role in the market, with questions about the service’s actual profitability persisting to this day.

If this trend continues, the shift towards more subscription-based gaming experiences may have some unintended consequences for both companies and gamers. 

In May, Microsoft faced boycott protests for Xbox Game Pass after it announced price increases for its consoles and games, and again when it decided to shut down Tango Gameworks, the creators of the beloved rhythm-action game Hi-Fi Rush. With a greater weight of the gaming industry now resting on subscription services, gamers have more power than ever to redirect their spending away from big gaming players by following through on boycott threats with the flip of a subscription switch. 

However, gamers also have reasons to be concerned with this industry shift. With more live-service and digital license access games flooding the market, gamers are increasingly left at the whims of large publishers who can pull the plug on these games at their discretion.

EA shut down the servers for 13 different games in just January of this year, and updated their shutdowns page recently to confirm online multiplayer shooter Anthem will be closing shop in 2026. Game studio shutdowns have also seemingly become more commonplace, and industry layoffs are still fresh in everyone’s minds as the future of gaming as we know it appears to be uncertain.

While gaming studios are likely to respond to recent consumer spending trends, the unfortunate reality about game development is that it’s not so easy to right the ship when it needs to turn. Both large AAA and small indie games alike can take years to develop and may not offer the best value for consumers when they eventually release. Are we at the dawn of the live-service subscription era, finally taking over the gaming landscape? Is there still room for passionate developers to invest significant resources and time in creating the deep and innovative gameplay experiences that defined the 2010s?

Let us know your thoughts in the comments below!