XBOX Game Pass and PS Plus Face Cancellation Surge as Fans Reject Price Hikes

Premium gaming subscriptions like PlayStation Plus and XBOX Game Pass are facing a grim reality as players around the world reconsider the value of such services in a time of economic uncertainty, with new data showing that cancellations could spike if companies don't reduce prices.

A consumer survey conducted by Circana (via GamesIndustry.biz) reveals that over 40% of US gamers who canceled a gaming subscription cite budget constraints and rising prices as the main reason for their decision. As the cost of living hits players where it hurts (their wallets), many are thinking again when it comes to expensive gaming subscriptions and weighing their value against countless other offerings across the entertainment landscape.

As Players Tighten Their Belts, Game Subs Fall Victim

Despite its more budget-friendly price, Nintendo Switch Online had the highest percentage of cancellations rooted in cost, with respondents indicating that they cut off their subscriptions as they "couldn't justify the cost in my budget but liked the service” This is a 10% increase from earlier this year when the survey was conducted for the first time. Around 40% of players who canceled XBOX Game Pass and PS Plus provided the same reason.

While the data doesn’t show that cancellations are skyrocketing, it should provide cause for concern for the three titans of gaming (PlayStation, XBOX and Nintendo) who will no doubt be constantly reassessing the value of their offerings. Pricing for each of the subscription services varies, as does the type of content they offer. Players are growing more cognizant of the poor value of being permanently subscribed to a service they only use occassionally.

Like with other subscription services, consumers may turn to cost-cutting measures which allow them intermittent access to content, such as churning. Gamers may subscribe to a service for one or two months to play a title which interests them, then immediately cancel, thus saving themselves from an expensive ongoing subscription. Only Sony tries to directly combat this by making its monthly titles only playable while subscription to PlayStation Plus.

Which Gaming Service Offers The Best Value?

Comparing the services across the board, PlayStation Plus is the most expensive, with its Essential tier offering access to 36 free claimable games per year, as well as a library of first- and third-party titles for $79.99 annually. Prices have risen steadily, but it maintains an around 50-million-strong base of paying subscribers. Fans find value in being able to play major titles like The Last of Us and Ghost of Tsushima, but some are feeling the pinch and complain online about the reduced value for money.

XBOX Game Pass’ Core tier sets players back $74.99 and provides players with most first-party titles on day one, including major franchises like Halo and DOOM. The service has hemorrhaged subscribers since a huge price increase last year, but has since seen prices cut by CEO Asha Sharma who said Game Pass had become prohibitively expensive. The company seems to be experimenting with dynamic pricing too, in order to entice players to open their wallets once again.

Nintendo Switch Online is the cheapest offering, but arguably provides the least content (unless you’re totally hooked on playing retro games from bygone eras in Nintendo’s storied history.) It costs $19.99 per year and has over 140 retro titles, though players often clamor for the ones they never seem to make available. It does not offer new titles on day one or monthly games like its competitors.

With this in mind, it’s not hard to see why consumers consider cutting off these pricey subscriptions, especially when the quality of games offered can fluctuate—namely with PS Plus, which can sometimes offer monthly games of little value to players. The previous survey revealed that players canceled despite “liking the service”, showing that the content quality is no longer enough to overcome the barrier of high monthly fees.