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, introducing a new tier while simultaneously raising prices across the board. This move prompts a closer examination of Microsoft's evolving Game Pass strategy.

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

The price adjustments, effective July 10th for new subscribers and September 12th for existing ones, are as follows:

• Xbox Game Pass Ultimate: Increases from $16.99 to $19.99 per month. This tier retains its comprehensive features, including PC Game Pass, Day One games, a vast game library, online multiplayer, and cloud gaming.
• PC Game Pass: Increases from $9.99 to $11.99 per month. Day One releases, member discounts, and EA Play remain included.
• Game Pass Core: Annual price increases from $59.99 to $74.99, though the monthly price stays at $9.99.

Importantly, Xbox Game Pass for Console will be discontinued for new members starting July 10, 2024. Existing console subscribers can maintain access as long as their subscriptions remain active. After September 18th, 2024, the maximum stackable time for Game Pass for Console codes will be limited to 13 months.

Introducing Xbox Game Pass Standard:

A new tier, Xbox Game Pass Standard, priced at $14.99 per month, is being introduced. This tier offers a back catalog of games and online multiplayer but excludes Day One releases and cloud gaming. Further details regarding its release date and game availability are forthcoming.

Microsoft's Broader Strategy:

Microsoft emphasizes that these changes offer players more choice in how they access and play games. Statements from Xbox CEO Phil Spencer and CFO Tim Stuart highlight the importance of Game Pass, alongside first-party games and advertising, as a high-margin business driving Microsoft's growth. The company's strategy extends beyond consoles, with recent ads emphasizing that an Xbox console isn't required to play Game Pass games, thanks to platforms like Amazon Fire Sticks.

The Future of Xbox and Game Pass:

Despite speculation, Microsoft has confirmed its continued commitment to hardware, physical game releases, and console production. While acknowledging the challenges of manufacturing drives for consoles, Xbox's strategy doesn't rely on a complete shift to digital. The focus remains on delivering a wide array of games across multiple platforms, offering players choice and flexibility.