The gaming world is undergoing major transformations, and the challenges it faces seem to stem less from subscription services like Xbox Game Pass than from the overwhelming dominance of Fortnite and other live-service games.
According to Mat Piscatella, Executive Director at Circana (NPD), subscription services are not the industry’s biggest threat; rather, it’s the rise of live games that continue to absorb most of the gaming time.
In a recent analysis of video game sales data, Piscatella pointed out that subscription spending in the United States hit an all-time high in May 2025, with $0.6 billion spent. Despite this impressive figure, the analyst argues that services like Xbox Game Pass are not as problematic as many critics make them out to be. Instead, it’s the top live-service games that continue to monopolize playtime, particularly on consoles.
For example, nearly half of all gaming hours across PlayStation and Xbox are spent on the top 10 live-service games, including Fortnite, Minecraft, and Roblox. These games essentially dominate the market to the point where new titles struggle to find a foothold. Piscatella has repeatedly emphasized that Fortnite is the biggest competitor to any new game or service trying to enter the market. According to him, nothing else truly competes when it comes to the sheer attention these games command.
This trend highlights a shift in the industry where social gaming experiences take center stage. A few days ago, former Square Enix Business Director also weighed in on this topic, noting that the industry’s transition towards games-as-a-social-network would shape the future of gaming. As more players flock to the likes of Fortnite for the social experience it offers, other genres are being pushed aside, making it increasingly difficult for newcomers to break through.