Game Pass, PS Plus, and Nintendo Switch Online: Understanding the Subscriber Base

A recent study by Ubisoft found that approximately one in ten Ubisoft+ subscribers are new to the company's games, suggesting that some users are utilizing the service to try out or rent games before canceling their subscription. This trend was evident in October when Ubisoft saw a significant increase in subscribers, likely due to the release of Assassin's Creed Mirage. Although the exact figures were not disclosed, the data implies that subscription services have attracted new customers to Ubisoft, if not the gaming industry as a whole. To delve deeper into the demographics and motivations of subscribers, we consulted Newzoo's Global Gamer Study. The study revealed that subscribers from Western markets, including North America, Europe, and Australasia, are predominantly male (62%) and between 21 and 35 years old (42%). These individuals are core gamers, with 52% considering gaming their favorite hobby and spending more than six hours per week on console games (34%) and PC games (32%). On average, subscription users already spend between $5 and $25 per month on games. Interestingly, subscribers tend to have higher income levels (43%) compared to non-subscribers (34%), with 'higher income' defined as above $100,000 per year in the US. While cost savings and value are significant motivations for subscribers, they are not the primary reason for subscribing to services like Xbox Game Pass, PlayStation Plus, and Nintendo Switch Online. In fact, Newzoo's data suggests that the potential cost savings may not be enough to justify the subscription for low-income gamers. The study found that 'discounts or cost savings' is equally motivating for low-income (31%) and high-income (31%) gamers. For low-income gamers, cost savings and enjoying multiplayer features and online gaming are the joint top reasons for subscribing. In contrast, mid- and high-income players cite 'convenience of trying out new games' as their primary motivation, with 35% of mid-income players and 38% of high-income players selecting this option, compared to 30% of low-income players.