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Analysts at leading market intelligence firm DFC Intelligence are among those who believe that subscription services like the revamped PS Plus, Game Pass, and Switch Online will be major growth drivers for the games industry – so much so that even in the absence of major hit games, the industry is capable of setting records. So if you think that the lack of God of War Ragnarok news is going to hit Sony where it hurts, not quite…
What analysts have to say about PS Plus, Game Pass, and others
DFC Intelligence claims that despite a weak holiday 2022 lineup, software revenue from console and PC games this year is expected to be $72 billion, which is up by five percent year-on-year. 2021 was a record year that 2022 is set to break, with the company seeing this as a sign that the industry has successfully transitioned to games-as-a-service model. DFC Intelligence expects one-third of the entire industry’s software revenue to go to Sony, Microsoft, and Nintendo for their respective subscription services, which is no small feat.
Besides the above, Electronic Arts made 71 percent of its digital revenue in fiscal 2022 from live services and only 29 percent from full games. According to DFC, while the pandemic delayed major games, consumers “continued to spend money.” Analysts remain bullish, claiming that even a global recession shouldn’t put a dent in the games industry’s revenue.
“Even as prices rise and the possibility of recession lurks, the core game industry should continue to grow,” writes DFC Intelligence. “Of course, hardware shortages are still an issue and comparisons with an extremely strong 2020 to 2021 are tough.”
Speaking of hardware, DFC Intelligence believes that if Sony is able to meet PS5 production estimates, the console should outsell the Nintendo Switch this year.
In other news, a PlayStation user has compiled a very handy list of PS Plus Extra and Premium games with their sizes, and Sony has introduced new gaming monitors.