Nintendo Switch 2 surpasses records, U.S. game subscription spending reaches an all-time peak - potentially favorable for Xbox Game Pass?
In the world of video games, the second quarter of 2025 has been a period of significant growth, with video game subscription spending reaching an all-time high for the second consecutive month. This trend is expected to continue in July and August, driven by evolving monetization models and major game releases.
Xbox Game Pass Ultimate, a popular subscription service, is available for purchase on Amazon, Best Buy, and CDKeys. This service, which offers access to a vast library of games, has been a strong revenue driver for Microsoft. In 2024, Game Pass hit nearly $5 billion in revenue and continues to grow as players prefer the "buffet" access model over buying full-priced games individually.
One of the most anticipated games set to launch in July is Helldivers 2 on Xbox Series X|S. The release of this high-profile exclusive is likely to contribute to an increase in Xbox Game Pass subscriptions, as new subscribers are drawn in by the promise of early or exclusive access to the game.
Meanwhile, the Nintendo Switch 2 has been making waves in the market. In its launch month, the console sold 1.6 million units, setting a record for the highest launch-month sales for video game hardware in the U.S. The Nintendo Switch 2 was the best-selling console for June 2025 in both units and dollar sales, contributing to a 249% year-over-year increase in hardware spending.
The top 20 best-selling games in June 2025 were tracked by Circana through dollar amounts, not copies sold. Elden Ring Nightreign remained the number one best-selling game, while Death Stranding 2: On the Beach took second place. Mario Kart World took third place in the rankings.
Total video game spending for June 2025 reached $5.7 billion, up 22% year-over-year. This growth is consistent with the steady growth and diversified monetization evident in the gaming market throughout 2025, as trends shift towards battle passes, seasonal content, cosmetics, and microtransactions, complementing subscription models and sustaining steady revenue flows.
As we look ahead to July and August, the predicted spending is expected to see continued growth. The release of Helldivers 2 on Xbox Series X|S in August is causing curiosity about its potential impact on video game spending in that month. With the continued success of the Nintendo Switch 2 and the appeal of subscription services like Xbox Game Pass, July and August 2025 should see increased subscription spending, bolstered by the launch of Helldivers 2 and broader industry shifts favouring subscription and microtransaction models.
For gamers looking to stay up-to-date with the latest news, reviews, and guides for Windows and Xbox, a newsletter on various websites is an excellent resource. Subscribing to Xbox Game Pass Ultimate ensures access to all content coming to the service, allowing subscribers to play day one Xbox games on various platforms. Whether you're a fan of Xbox or Nintendo, it's an exciting time to be a video game enthusiast.
- The release of Helldivers 2 on Xbox Series X|S, scheduled for August, is generating curiosity about its potential effect on video game spending that month.
- Xbox Game Pass Ultimate, accessible on platforms like Amazon, Best Buy, and CDKeys, offers subscribers access to play day one Xbox games on various platforms.
- The Nintendo Switch 2, which saw record-breaking sales of 1.6 million units in its launch month, was the best-selling console for June 2025 in both units and dollar sales.
- The video game industry has seen a shift in trends towards battle passes, seasonal content, cosmetics, and microtransactions, complementing subscription models and sustaining steady revenue flows, as demonstrated by the success of Xbox Game Pass.
