Microsoft increases game pass subscription prices
Microsoft has announced significant price increases and structural changes to its Game Pass subscription service.
Microsoft has revealed hefty price rises for Game Pass, its Netflix-style game subscription service.
Microsoft has announced significant price increases and structural changes to its Game Pass subscription service, which provides a Netflix-style gaming experience.
Following Microsoft’s $69 billion (£56 billion) acquisition of Activision Blizzard in 2023, the company is making strategic adjustments to its subscription model. Here are the key details:
Price Increases
- PC Game Pass: The monthly fee will rise by £2 to £9.99.
- Game Pass Ultimate: The monthly fee will increase by £2 to £14.99.
- Game Pass Core: The annual fee will go up from £49.99 to £55.99.
Subscription Changes
Microsoft will replace the standard subscription tier for Xbox consoles in September. Xbox gamers will need to subscribe to Game Pass Ultimate to access new game releases on the day they launch.
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Current subscribers to the basic tier can keep it until it expires, but it will exclude newly released games and some additional titles available only to Ultimate subscribers.
Impact on Subscribers
These changes will affect approximately 34 million Game Pass subscribers worldwide. While the price hikes take effect immediately for new subscribers, existing members paying recurring fees will see their bills change in September.
Strategic Move
Microsoft is positioning Game Pass to include immediate access to high-profile titles such as the upcoming “Call of Duty: Black Ops 6,” which will be available on Game Pass from its release day.
Analysts see this as a strategy to challenge the traditional dominance of physical game sales and compete directly with Sony’s PlayStation Plus service.
Christopher Dring from GamesIndustry.biz speculated that Microsoft would need to introduce higher tiers or new monetization techniques to sustain the costs associated with offering blockbuster games on release.
Comparison with Sony
The new price for the most expensive Game Pass tier is now higher than Sony’s PlayStation Plus Premium, which costs £13.49 per month in the UK.
Microsoft’s Statement
Microsoft mentioned that “some games” available on Game Pass Ultimate at launch might be added to the standard subscription later, providing some flexibility but clearly pushing for higher-tier subscriptions.
Conclusion
In summary, Microsoft’s Game Pass price increase and subscription tier restructuring reflect a strategic push to integrate high-demand game titles like Call of Duty into the service.
This move aims to attract more subscribers while adjusting pricing to cover the costs associated with such premium content, positioning Game Pass as a more competitive and comprehensive gaming service.
