Xbox Game Pass Continues Push to Be Everywhere While Also Pushing Prices Up

Xbox Game Pass Price Hikes and New Tier Announced: A Deeper Dive into Microsoft's Strategy

Microsoft recently announced price increases for its Xbox Game Pass subscription service, alongside the introduction of a new tier omitting "Day One" game releases. This article delves into these changes and examines Microsoft's broader Game Pass strategy.

Price Adjustments Effective July 10th (New Members) and September 12th (Existing Members)

The price increases, detailed on Xbox's support page, affect Xbox Game Pass Ultimate, PC Game Pass, and Game Pass Core:

• Xbox Game Pass Ultimate: Increases from $16.99 to $19.99 per month. This tier retains its comprehensive features: PC Game Pass, Day One games, back catalog titles, online multiplayer, and cloud gaming.
• PC Game Pass: Rises from $9.99 to $11.99 per month, maintaining access to Day One releases, member discounts, the PC game catalog, and EA Play.
• Game Pass Core: Annual price increases from $59.99 to $74.99, though the monthly price remains at $9.99.
• Game Pass for Console: Discontinued for new members starting July 10, 2024. Existing subscribers can maintain access as long as their subscription remains active. After September 18, 2024, the maximum stackable time for Game Pass for Console codes will be limited to 13 months.

Existing subscribers will see price changes reflected in their next billing cycle after September 12, 2024. If their subscription lapses, they'll need to choose from the updated plans.

Introducing Xbox Game Pass Standard

A new tier, Xbox Game Pass Standard, priced at $14.99 per month, is being introduced. This offers access to a back catalog of games and online multiplayer but excludes Day One releases and cloud gaming. Microsoft plans to release further details regarding availability soon.

Microsoft's Broader Strategy: Beyond the Console

Microsoft's stated goal is to provide gamers with more choice in how they experience games. This includes offering various pricing tiers to cater to different preferences. While acknowledging the importance of Game Pass, Microsoft emphasizes its commitment to hardware, confirming continued production of Xbox consoles and physical game releases. The recent advertisement highlighting Game Pass on Amazon Fire Sticks underscores their strategy of expanding Game Pass accessibility beyond Xbox consoles.

Statements from Xbox CEO Phil Spencer and CFO Tim Stuart highlight the high-margin nature of Game Pass and its role in Microsoft's overall gaming strategy, emphasizing innovation and expanding access to games across multiple platforms. The company's strategy, however, does not rely solely on a digital-only approach.