Omdia released its Game Subscription and Cloud Gaming Market Forecast, which estimates that by 2028, the global game subscription market will exceed $27 billion in revenue, and its value and importance will continue to expand. Game subscription spending this year will reach $19 billion, following the second consecutive year of post-pandemic revenue growth in 2022.

Microsoft (MSFT.US) and Sony continue to dominate the game store services space, with a total of 82 million subscribers this year. Cloud gaming is a particularly prominent part of the subscription market, with revenues expected to reach $3.7 billion this year and expand to $5.8 billion by 2028. However, this will be driven primarily by hybrid services such as Xbox Game Pass Ultimate and PlayStation Plus Premium, with pure cloud platforms such as Amazon's (AMZN.US) Luna+ accounting for just 3% of total subscription revenue by 2028.

Omdia expects total paid game subscriptions to reach 0.168 billion by the end of this year, rising to 0.203 billion by 2028 (excluding in-game subscriptions). At the same time, $27 billion in game subscription spending by 2028 will account for 14% of total global gaming spending.

Omdia senior chief analyst George Jijiashvili said subscriptions have become an important part of the leading gaming company's business strategy, delivering value to consumers through exclusive content and multi-platform accessibility. However, while subscriptions provide a convenient and cost-effective option for players, ongoing development in this mode faces huge financial hurdles. Omdia expects subscriptions to continue to grow as a supplemental source of revenue, rather than replacing other profit models in the industry.