Game Pass Expansion Boosts Accessibility, Impacts Pricing

Xbox Game Pass Price Hikes and New Tier Announced: Expanding Reach, Increasing Costs

Microsoft has announced price increases for its Xbox Game Pass subscription service, alongside a new subscription tier. This move reflects Xbox's ongoing strategy to expand Game Pass' reach across various platforms, while also adjusting pricing.

Price Increases Effective July 10, 2024 (New Subscribers) and September 12, 2024 (Existing Subscribers):

• Xbox Game Pass Ultimate: Increasing from $16.99 to $19.99 per month. This tier retains its inclusion of PC Game Pass, Day One games, the back catalog, online play, and cloud gaming.
• PC Game Pass: Rising from $9.99 to $11.99 per month. Day One releases, member discounts, the PC game catalog, and EA Play membership remain.
• Game Pass Core: Annual price increases from $59.99 to $74.99, though the monthly price stays at $9.99.
• Game Pass for Console: Discontinued for new subscribers 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 13 months.

Current console subscribers can keep their access to Day One games provided their subscription doesn't lapse. If it does, they'll need to switch to another Game Pass plan.

Introducing Xbox Game Pass Standard:

A new $14.99 per month tier, Xbox Game Pass Standard, is launching soon. This tier offers access to a back catalog of games and online play but excludes Day One games and cloud gaming. More details on release dates and availability are forthcoming.

Xbox's Broader Strategy:

Microsoft emphasizes providing players with more choice through varied pricing and plans. This aligns with previous statements from Xbox CEO Phil Spencer and CFO Tim Stuart, highlighting Game Pass, first-party games, and advertising as high-margin drivers of growth. The recent ad campaign showcasing Game Pass on Amazon Fire Sticks underscores Xbox's commitment to reaching a wider audience beyond its consoles.

While expanding Game Pass' digital presence, Microsoft confirms its continued commitment to hardware and physical game releases.

The price adjustments and new tier reflect a strategic shift to broaden Game Pass' appeal and generate increased revenue, while maintaining options for players with diverse preferences and budgets.