Subscription Gaming: Wave of the Future or the Next Big Failure?

Last year, it seemed like subscription gaming was going to completely change how we play. Just look at the headlines: Wired boldly proclaimed that “Subscriptions Are About to Swallow Gaming.” Variety, meanwhile, simply declared that “The Future of Gaming Is Subscription.”

Of course, those predictions were riding high on the coming wave of subscription services. The biggest name in the subscription game was Google, and it looked like their Stadia really was set to revolutionize gaming.

However, Stadia was more fizzle than sizzle as soon as it hit the scene. In the wake of Google’s failure to make subscription happen, it’s time to ask the question: is this really the wave of the future, or is this whole idea doomed to failure?

RIP, rentals

For skeptical gamers, the appeal of subscription gaming is hard to understand. One way to understand the appeal, though, is to look at the death of the video game rental industry.

Back in the day, the model was simple: players would rent games from places like Blockbuster and Movie Gallery. If they liked the game, they’d go buy their own copy. And if they didn’t like it, they would only lose a few bucks.

Now, all those video rental stores are closed, and they took the game rental industry with them. For a time, players could rent games through their local Redbox, but that is no longer an option. Unless you’re willing to pay for services like Gamefly (complete with long delivery times), there aren’t many rental options left.

In the face of this, subscription gaming starts to look like a good idea. For a fixed monthly fee, players have access to dozens (or even hundreds) of games on demand. And unlike old-school rentals, the gamer has enough time to complete entire games.

Bad for game companies

Subscription gaming isn’t great news for everyone, though. For example, it puts many game companies into a bind.

In our current system, you pay a company directly for their content in the form of a video game. Systems like your PlayStation or Xbox are just a way for you to enjoy the work of these creators. And along the way, game companies build both a brand and a loyal fanbase.

If subscription gaming ever becomes the norm, though, the shoe is on the other foot. There is less incentive to buy a game outright when you can just wait for it to become available through a service like the Microsoft Game Pass.

Pretty soon, we have fewer game companies and fewer games because those who don’t play ball with the new paradigm will fall by the wayside.. This is bad for those companies and just as bad for users.