Xbox Game Pass Expands Reach, Raises Prices

Microsoft has recently announced significant changes to its Xbox Game Pass subscription service, including price increases and the introduction of a new tier. These updates are part of Xbox's broader strategy to enhance its gaming ecosystem while adapting to market demands. Here's a detailed look at what's changing and what it means for subscribers.

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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 announced price increases for its Game Pass subscription service, effective immediately for new subscribers starting July 10, 2024, and for existing members from September 12, 2024. These changes affect Xbox Game Pass Ultimate, PC Game Pass, and Game Pass Core. Here's a breakdown of the new pricing:

• Xbox Game Pass Ultimate: The premium tier, which includes PC Game Pass, Day One games, a back catalog of titles, online multiplayer, and cloud gaming, will increase from $16.99 to $19.99 per month.
• PC Game Pass: This tier will see a monthly price increase from $9.99 to $11.99, maintaining all current benefits such as Day One releases, membership discounts, a PC game catalog, and an EA Play membership.
• Game Pass Core: The annual price will rise to $74.99 from $59.99, while the monthly price remains at $9.99.

Additionally, starting July 10, 2024, Xbox Game Pass for Console will no longer be available for new members. Current subscribers can retain their membership, including access to Day One games, as long as they do not let their subscription lapse. If a subscription does lapse, members will need to choose from the updated plans. Xbox Game Pass for Console codes will remain redeemable until further notice, with a maximum extension limit of 13 months set to apply from September 18, 2024.

Rolling Out Xbox Game Pass Standard Soon

Microsoft is also introducing a new tier called Xbox Game Pass Standard, priced at $14.99 per month. This tier offers access to a back catalog of games and online multiplayer but excludes Day One games and cloud gaming. Day One games are new titles available on Game Pass the same day they are released. Xbox Game Pass Standard will include numerous games and benefits such as online console multiplayer and member deals and discounts, though some titles exclusive to Game Pass for Console may not be available. More details about its release and availability will be shared soon.

"We created Game Pass to offer players more choice in how they discover and play games," Microsoft stated. "That includes offering different prices and plans, so players can find what works best for them."

Xbox Execs Previous Comments on Game Pass

Xbox CEO Phil Spencer emphasized the company's commitment to innovation in gaming services. "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."

Xbox CFO Tim Stuart also highlighted Game Pass as a high-margin business for Microsoft during the Wells Fargo TMT Summit 2023, alongside first-party games and advertising.

You Don't Need an Xbox to Play Xbox

In a move to expand its reach, Xbox has debuted a new ad campaign showcasing Game Pass' availability on Amazon Fire Sticks. This allows users to transform their regular TVs into smart TVs and play games without needing an Xbox console. By subscribing to Game Pass Ultimate, players can access hundreds of games, including Forza Motorsport, Starfield, and Palworld, directly through their Fire TV Stick.

Phil Spencer reiterated Xbox's goal to provide a wide range of gaming options across multiple platforms. "What we want to offer is choice," he said. "More people play 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

Microsoft CEO Satya Nadella confirmed earlier this year that the company has no plans to abandon its hardware business, emphasizing potential for hardware expansion. Xbox also reiterated its commitment to physical game copies as long as there is demand. Phil Spencer noted during an internal town hall that Xbox will continue to produce consoles, highlighting that gaming consoles are "the last consumer electronic device that has a drive."

Spencer emphasized that moving entirely to digital is not a strategic priority for Xbox. "Getting rid of physical, that's not a strategic thing for us," he stated, acknowledging the ongoing relevance of physical media in gaming.