Microsoft has announced significant changes to its Xbox Game Pass subscription service, including price increases across various tiers and the introduction of a new tier without "Day One" games. Let's dive into these updates and explore Xbox's strategy behind these adjustments.
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Microsoft is RAISING Xbox Game Pass' Pricing
Game Pass Prices Increased and New Subscription Tier Announced --------------------------------------------------------------Starts July 10 for New Game Pass Members, September 12 for Existing Ones
Xbox has officially raised the prices for its Xbox Game Pass subscription service, as detailed on the company's support page. These changes affect Xbox Game Pass Ultimate, PC Game Pass, and Game Pass Core subscribers.
Here are the updated prices and changes:
Xbox Game Pass Ultimate: The premium subscription, offering PC Game Pass, Day One games, a vast back catalog, online multiplayer, and cloud gaming, will now cost $19.99 per month, up from $16.99.
PC Game Pass: The price for this tier will rise from $9.99 to $11.99 monthly, maintaining its current benefits, including Day One releases, membership discounts, a comprehensive PC game catalog, and EA Play.
Game Pass Core: The annual subscription price will increase to $74.99 from $59.99, while the monthly rate remains at $9.99.
Xbox Game Pass for Console: As of July 10, 2024, this tier will no longer be available for new subscribers.
These global price adjustments will take effect on July 10, 2024, for new subscribers and on September 12, 2024, for existing members. Once your current subscription ends, you'll need to choose from the updated plans. The new prices will apply to your next billing cycle after September 12.
Existing Game Pass for Console subscribers can continue enjoying their membership, including Day One games, as long as their subscription remains active. Should your subscription lapse, you won't be able to rejoin this tier and will need to select one of the other updated plans.
Xbox has confirmed that Game Pass for Console codes will still be redeemable until further notice. "As of September 18, 2024, the maximum extension limit for Game Pass for Console will be 13 months," the company stated. "This will not affect any time you currently have stacked on your account beyond 13 months, but will only impact your ability to stack more than 13 months after September 18, 2024."
Rolling Out Xbox Game Pass Standard Soon
Microsoft has introduced a new tier, Xbox Game Pass Standard, priced at $14.99 per month. This tier offers access to a back catalog of games and online play but excludes Day One games and cloud gaming. Day One games are new titles available on Game Pass the day they launch.
Xbox Game Pass Standard includes numerous games and benefits such as online console multiplayer and select member deals and discounts, though some titles exclusive to Game Pass for Console might not be included.
Xbox plans to release more details about the launch dates and availability of Xbox Game Pass Standard soon.
"We created Game Pass to offer players more choice in how they discover and play games," Microsoft stated regarding these changes. "That includes offering different prices and plans, so players can find what works best for them."
Xbox Execs Previous Comments on Game Pass
In a December presentation, Xbox CEO Phil Spencer highlighted, "When I think about investments in things like Game Pass, and Xbox Cloud Gaming, cross play, and cross save, and ID@Xbox, all of these things — I want us to continue to innovate, so people on our console feel like we're making investments in console that matches their commitment they're making to us."
During the Wells Fargo TMT Summit 2023, Xbox CFO Tim Stuart emphasized that Xbox Game Pass, alongside first-party games and advertising, is a high-margin business for Microsoft, fueling the company's growth in these areas.
You Don't Need an Xbox to Play Xbox
As part of its marketing campaign, Xbox has launched a new ad showcasing the debut of Xbox Game Pass on Amazon Fire Sticks. This innovative approach allows users to transform their regular TVs into smart TVs and play games without an Xbox console.By using an Amazon Fire TV Stick and subscribing to Game Pass Ultimate, players can enjoy hundreds of games, including Forza Motorsport, Starfield, and Palworld.
While Xbox is actively expanding its gaming subscription service, Phil Spencer has emphasized the importance of bringing more major titles to Xbox Game Pass. In an interview last year, Spencer reiterated Xbox's commitment to offering a broad range of games and enabling customers to play wherever they choose. "What we want to offer is choice," Spencer said, acknowledging that Xbox's success is measured by "more people playing Xbox, whether it's on Xbox consoles, on PC, in the cloud, or on other consoles."
Xbox's strategy does not hinge on going all-digital
Earlier this year, Microsoft CEO Satya Nadella confirmed that Microsoft has no plans to abandon its hardware business, emphasizing the potential for further hardware expansion.
In February, Xbox affirmed its commitment to physical game copies as long as there is demand. During an internal town hall, Phil Spencer reassured employees that Xbox has no plans to stop producing consoles.
In an interview earlier this year, Spencer noted that gaming consoles are "the last consumer electronic device that has a drive," highlighting the challenges of drive manufacturing and costs. However, he firmly stated that Xbox's strategy is not focused on becoming all-digital. "Getting rid of physical, that's not a strategic thing for us," Spencer affirmed.
