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Forums - Sales Discussion - May NPD 2022 Thread - NS #1, Xbox Series X|S #2, PS5 #3

The growth of subscription services and harsh decline of software sales has me worried about the future of gaming. I know people like gamepass, but I know I'm going to be frustrated with gaming when that becomes the primary driver of game revenue.



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Doctor_MG said:

The growth of subscription services and harsh decline of software sales has me worried about the future of gaming. I know people like gamepass, but I know I'm going to be frustrated with gaming when that becomes the primary driver of game revenue.

I wouldn't call a 10% decline YTD coming off a massive selling year a "harsh decline".  Plus, last month had practically zero games launch and launch games are always among the best sellers each month. 

I don't think subscription services like Game Pass are having as much negative impact as you think.  If anything, it allows developers to have two sources of income, one lump sum from GP along with traditional sales.  I'm not aware of any games that are ONLY on subscription services, and I don't want that to happen either.  As long as the option to buy individually remains, I have no problem with it.



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Yeah, I highly doubt that subs will be the only source of games within my lifetime. Why would any developer abandon that source of income. Instead everything being digital is something totally different.



Elden Ring securing the #1 spot both in May and YTD (and Switch Sports is doing well too). ER has flown past CoD:Vanguard, but I think its clear that Vanguard is not a popular entry. I see several CoD titles on the XBox charts which tells me the CoD fanbase is currently fractured.



kenjab said:

I wouldn't call a 10% decline YTD coming off a massive selling year a "harsh decline".  Plus, last month had practically zero games launch and launch games are always among the best sellers each month. 

I don't think subscription services like Game Pass are having as much negative impact as you think.  If anything, it allows developers to have two sources of income, one lump sum from GP along with traditional sales.  I'm not aware of any games that are ONLY on subscription services, and I don't want that to happen either.  As long as the option to buy individually remains, I have no problem with it.

It was 19% YoY, not 10%. The 10% number is for the entire year so far. 19% is substantial. Also, it being down 10% for the year shows you that it doesn't matter the month. Sub services are the ONLY place of growth, game launches or not.

Your last paragraph is essentially a big "not yet", but when sub services become the de facto model for videogame revenue, you can bet your bottom there will be sub exclusives. Calling it now.



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Ghost of Tsushima is still going strong, would of never of expected that game to have better legs than TLOU2 and FFVIIR. Both the latter games feel like underperformers in this context.



Mar1217 said:

I knew this reaction was coming but you gotta take into account that May is usually a slow month and the boost from last year coming from the pandemic years was gonna effect the decrease we see now. Not only that but scarcity of hardware doesn't help either.

It was unrealistic to think we would continuously see an increase from the market after outlying years of growth.

You would expect continued growth with the new generation of consoles. Video game spending should not be down 19% YoY now that more people have access to these new consoles. Since Sub sales are increasing we see that more people have access, but they are choosing to spend their money in other ways.