NEW YORK, July 18, 2024 /PRNewswire/ — The global subscription based gaming market  size is estimated to grow by USD 7.79 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  12.17%  during the forecast period. Enhanced features of next-generation gaming consoles is driving market growth, with a trend towards emergence of mobile cloud video gaming. However, impacts of piracy on subscription based gaming  poses a challenge. Key market players include Alphabet Inc., Amazon.com Inc., Apple Inc., BLACKNUT, Blade SAS, Capcom Co. Ltd., Electronic Arts Inc., Epic Games Inc., Gimzawy, Microsoft Corp., NEOM Co., Netflix Inc., Nintendo Co. Ltd., NVIDIA Corp., Roblox Corp., Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Ubisoft Entertainment SA, and Ziff Davis Inc..

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Key Market Trends Fueling Growth

Cloud gaming is a service that allows users to access and play games hosted on remote servers through Internet-connected devices. These games can be accessed for free or through paid subscriptions. Microsoft’s Xbox Game Pass is an example of a subscription-based cloud gaming service, offering over 100 games for approximately USD15 a month. Cloud gaming eliminates the need for high-end hardware, making it an attractive option for non-core gamers and those with limited storage and processing capacity on mobile devices. The global subscription-based gaming market is expected to grow due to the increasing popularity of cloud gaming. 

The Subscription-based gaming market is experiencing a surge due to the COVID-19 pandemic and lockdown regulations. Cloud-based subscription games, such as Google for Games and Xbox Cloud Gaming, are becoming increasingly popular. Competitive genres like Action and Adventure, represented by titles like Call of Duty, Warcraft, Overwatch, Crash Bandicoot, and Guitar Hero, dominate the scene. Newzoo reports a competitive space with service providers like Activision Blizzard, Sumo Group, and Turtle Rock Studios. Console gaming and PC gaming continue to coexist, with VR (Virtual Reality) and Hyper-casual game genre gaining traction. Minecraft Earth, PUBG Mobile, and others benefit from a Covid-related surge in consumer bases. CTR (click-through rate) is high for offline games during lockdowns. The market remains competitive, with console gaming and PC gaming continuing to dominate but cloud-based games gaining ground. 

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Market Challenges

• In the digital gaming industry, piracy poses a significant challenge to publishers and vendors in the subscription-based gaming market. Unauthorized copying, downloading, and sharing of non-licensed content deter publishers from investing heavily in game development. This issue primarily impacts the digital and packaged gaming segments, which are the primary sources of gameplay in the subscription-based gaming market. As a result, revenue generation is projected to be adversely affected during the forecast period. Publishers, though not direct participants, are indirectly affected due to their partnerships with console manufacturers. Approximately 20% of gamers engage in illegal downloading, primarily through peer-to-peer systems, websites, blogs, and stream-ripping applications. The increasing instances of cyber threats and piracy are anticipated to impede the expansion of the global subscription-based gaming market.
• The subscription-based gaming market faces several challenges in terms of profitability for Small and Medium Enterprises (SMEs). Device type and game type segmentations pose action for SMEs, as they must cater to various device types like smartphones and gaming consoles, and diverse game genres such as action, shooting, sports, adventure, fighting, and role-playing. Availability of Augmented Reality (AR) and Virtual Reality (VR) games adds to the complexity. The action segment, including games like shooting and fighting, dominates the market. Gamer perception and decision-making skills influence the choice of subscription games. The COVID-19 pandemic and the resulting remote work environment have led to increased leisure time and a surge in mobile gaming. Subscription services like Streamlabs, Stream Hatchet, and Twitch have emerged, offering AR, VR, and artificial intelligence (AI) capabilities. Smartphone penetration and internet access are essential factors, with high-end smartphones and IoT driving growth. Estimations suggest cloud-based gaming solutions will dominate the subscription economy. Hardware sales decline as gaming platforms shift to subscription business models, according to the Zoo report.

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Segment Overview 

This subscription based gaming market report extensively covers market segmentation by

1. Genre 
• 1.1 Action
• 1.2 Adventure
• 1.3 Shooting
• 1.4 Sports
• 1.5 Others
2. Device 
• 2.1 Smartphones
• 2.2 Console
• 2.3 PC
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Action- 

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The global Blockchain Gaming Market is experiencing rapid growth, driven by the rising popularity of decentralized gaming platforms that offer enhanced security, transparency, and ownership of digital assets. Key players are innovating to integrate blockchain technology, creating new opportunities for gamers and developers alike. The global Gaming Software Market continues to expand, fueled by increasing demand for immersive gaming experiences and advancements in technology such as AR and VR. Major companies are investing in cutting-edge software solutions to enhance gameplay, attract diverse audiences, and drive revenue growth.

Research Analysis

Subscription-based gaming services have revolutionized the way we play games, offering a steady stream of content for a monthly fee. These services provide additional benefits beyond the games themselves, such as exclusive in-game items and discounts on digital purchases. With the pandemic keeping many at home, these services have become a popular choice for engaged audiences seeking new forms of leisure time entertainment. Gaming consoles and PCs are not the only platforms for subscription-based gaming. Augmented reality (AR) and virtual reality (VR) offer immersive experiences, while cloud-based gaming solutions allow access to high-end games on low-end devices. Smartphone penetration and internet access have expanded the reach of subscription games to mobile gamers. Subscription-based gaming services have also embraced emerging technologies like artificial intelligence (AI), IoT, and microtransactions. The action genre, in particular, has seen significant growth, with subscription services offering access to the latest action and adventure games. Twitch and other streaming platforms have further enhanced the subscription-based gaming experience, allowing players to connect with each other and share their gameplay in real-time. The subscription economy continues to grow, with gaming platforms offering a wide range of genres, from action to adventure, to cater to diverse audiences.

Market Research Overview

The Subscription-based Gaming Market is a rapidly growing segment in the gaming industry, offering players unlimited access to a library of games for a monthly fee. Subscription-based gaming services provide additional benefits, such as discounts on microtransactions and paid downloads, creating an engaged audience for operators. The market encompasses various gaming sectors, including Action, Shooting, Sports, Adventure, Fighting, Role-playing, and Racing, available on Smartphones, Gaming Consoles, and PCs. The use of Artificial Intelligence (AI) and Augmented Reality (AR) in games enhances the user experience. The subscription economy is thriving, with key vendors like Google for Games, Activision Blizzard, and Microsoft’s Xbox offering cloud-based gaming solutions. The COVID-19 pandemic and lockdown regulations have accelerated the adoption of subscription-based gaming, with an increase in remote work environments and leisure time. The Action and Adventure genres dominate the market, with gamer’s perception and decision-making skills influencing their choices. The prices for subscription-based gaming services vary, with some offering free trials and flexible plans. The availability of high-end smartphones and widespread internet access have contributed to the growth of mobile gamers. IoT and hardware sales are also impacted by the subscription economy. The risks associated with subscription-based gaming include the potential for service disruptions and dependency on a stable internet connection. SMEs in the gaming sector are also adopting subscription business models to reach a wider audience and generate profit. The market is expected to continue growing, with estimations of over USD159 billion in revenue by 2025. Streamlabs, Stream Hatchet, Twitch, and other service providers are also capitalizing on the trend towards subscription-based gaming. The future of the market looks bright, with the integration of AI and VR technologies set to revolutionize the gaming experience.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Genre
• Action
• Adventure
• Shooting
• Sports
• Others
• Device
• Smartphones
• Console
• PC
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

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