Ps Plus And XBLG Generated $3 Billion In Combined Subscription Revenue In 2016


2016 was the year which saw both the PS4 and Xbox One go back and forth in a tug of war to determine which was the best console in the world, and it would be safe to say that PS4 came out on top yet again, and it will retain that position for the coming years thanks to its brilliant exclusives.
It will also be interesting to see how the two console fare this time around with the introduction of Nintendo Switch one of the hottest topic in the world of gaming today. If the Switch is to succeed though it may come down to one very important factor and that is digital distribution.

According to Superdata in the past year Xbox Live and PlayStation Network subscription services amounted to $3billion in revenue.
While total earnings for digital downloads on consoles including add ons and micro transactions was around $7 billion worldwide. Those are some fantastic numbers, and further reiterate what many of us already know, that the future of gaming is in digital services.
With Nintendo also recently announcing that they will be taking a similar route as well, with a number of classical titles at its disposal it remains to be seen how their subscription services factor into the equation. However, one important factor may be the pricing of the service, if Nintendo is to compete with the likes of XBL and PSN then one thing is for sure it must have a subscription fee which is lower than both of its counterparts.

In marketing this is called penetration pricing, and I feel that it may be Nintendo’s best option to make its subscription service a success.
With revenues on the rise it’s no surprise that XBL and PSN will both be getting a new competitor. Let us know what you think by commenting in the comments section below.