Nintendo Switch 2 shatters sales records, prompting record-breaking game subscription spending in the U.S., potentially signaling favorable conditions for Xbox Game Pass.
In the ever-evolving world of video games, subscription services like Xbox Game Pass Ultimate and PlayStation Plus are driving a new trend in spending patterns. According to recent reports, these services have seen a 10% increase in subscribers, indicating a positive outlook for the months of July and August 2025.
This shift towards subscription-based models can be attributed to the rising cost of premium game titles. In 2024, the average game price increased from around $59.99 to $69.99. This increase, coupled with economic pressures, has led to a significant drop (nearly 25%) in spending among young adults aged 18–24.
However, the growth in subscription spending is not limited to these services alone. Mobile gaming, a segment that is expected to generate $126 billion in revenue by 2025, is also contributing to the overall trend. Popular genres such as role-playing games, strategy, and simulation are driving strong in-app purchase engagement, making mobile gaming an integral part of the gaming landscape.
Looking at the top-performing games contributing to spending, titles like Black Myth: Wukong and Dragon Ball: Sparking Zero have been making waves. Meanwhile, Elden Ring Nightreign continues to reign supreme as the top-selling game in June 2025. Other notable mentions include Mario Kart World, which took third place, and Death Stranding 2: On the Beach, which secured the second spot.
Interestingly, the Nintendo Switch 2 has set a new record for the highest launch-month sales for video game hardware in the U.S., selling 1.6 million units in its first month. This surge in sales has led to a 249% increase in hardware spending year-over-year.
The upcoming release of Helldivers 2 on Xbox Series X|S in August 2025 could potentially cause another increase in video game subscription spending. As the game will be available on Xbox Game Pass Ultimate, subscribers will never miss out on anything coming to the service.
In the U.S., video game spending for June 2025 reached a new monthly high for the second consecutive month, totalling $5.7 billion, up 22% year-over-year. Retailers such as Amazon, Best Buy, and CDKeys offer Xbox Game Pass Ultimate for purchase, making it easily accessible to gamers.
As we move into the summer months, it seems that while premium game purchases may be slowing down among younger demographics, subscription services and mobile gaming are the main drivers of video game spending growth. This trend is likely to continue, offering an affordable and accessible way for gamers to enjoy the latest titles across various platforms.
- Microsoft's Xbox Game Pass Ultimate subscription service and PlayStation Plus are experiencing a 10% increase in subscribers, predicting a positive outlook for July and August 2025.
- The increasing cost of premium game titles, along with economic pressures, has led to a significant drop (nearly 25%) in spending among young adults aged 18–24.
- Mobile gaming, expected to generate $126 billion in revenue by 2025, is also contributing to the overall trend in spending, with popular genres like role-playing games, strategy, and simulation driving strong in-app purchase engagement.
- In June 2025, top-performing games contributing to spending included Black Myth: Wukong, Dragon Ball: Sparking Zero, Elden Ring Nightreign, Mario Kart World, and Death Stranding 2: On the Beach.
- The Nintendo Switch 2 has set a new record for the highest launch-month sales for video game hardware in the U.S., selling 1.6 million units in its first month, resulting in a 249% increase in hardware spending year-over-year.
- The upcoming release of Helldivers 2 on Xbox Series X|S in August 2025 could potentially cause another increase in video game subscription spending, as the game will be available on Xbox Game Pass Ultimate and easily accessible to subscribers.
