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 and cater to diverse player needs. Let's delve into the details of these changes and what they mean 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 increased the prices for its Xbox Game Pass subscription service, as announced on the company's support page. This price adjustment affects Xbox Game Pass Ultimate, PC Game Pass, and Game Pass Core. Here are the detailed changes and the new pricing:
Xbox Game Pass Ultimate: This comprehensive subscription, which includes PC Game Pass, Day One games, a back catalog of titles, online play, and cloud gaming, will see its price rise from $16.99 to $19.99 per month.
PC Game Pass: The PC-specific tier will increase from $9.99 to $11.99 monthly, maintaining all current benefits such as Day One releases, membership discounts, a vast PC game catalog, and an EA Play membership.
Game Pass Core: The annual subscription price will increase to $74.99 from $59.99, while the monthly cost remains at $9.99.
Xbox Game Pass for Console: This option will no longer be available for new members starting July 10, 2024.
These price changes will take effect immediately for new subscribers on July 10, 2024, and for existing members starting September 12, 2024. Upon the next recurring billing after September 12, the new prices will apply. If an existing membership lapses, subscribers will need to select from the updated plans.
Current Game Pass for Console subscribers can continue enjoying their membership, including access to Day One games, as long as they maintain their subscription. If the subscription lapses, access to Game Pass for Console will be lost, requiring a switch to one of the updated plans.
Xbox has confirmed that Game Pass for Console codes will remain redeemable until further notice. As of September 18, 2024, the maximum extension limit for Game Pass for Console will be set to 13 months. This change will not affect any existing time stacked on accounts that exceeds 13 months but will limit future stacking beyond this duration after the specified date.
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 does not include Day One games or cloud gaming. Day One games are new releases available on the same day they launch.
The Xbox Game Pass Standard tier includes a wide range of games and benefits such as online console multiplayer and select member deals and discounts. However, some titles exclusive to Game Pass for Console may not be available in this tier.
Xbox plans to release more information on the availability and specific launch dates for Game Pass Standard 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
In a presentation last December, Xbox CEO Phil Spencer emphasized the company's commitment to innovation. "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, speaking at the Wells Fargo TMT Summit 2023, highlighted that Xbox Game Pass, along with first-party games and advertising, is a high-margin business for Microsoft, driving the company's expansion in these areas.
You Don't Need an Xbox to Play Xbox
In related news, Xbox has launched a new ad campaign showcasing Xbox Game Pass on Amazon Fire Sticks, a device that turns regular TVs into smart TVs and allows users to play games. The latest ad emphasizes that you don't need an Xbox console to enjoy their games.
By subscribing to Game Pass Ultimate and using an Amazon Fire TV Stick, users can access hundreds of games, including Forza Motorsport, Starfield, and Palworld.
Xbox's strategy is to expand its gaming subscription service, with Phil Spencer expressing the intent to introduce more significant titles to Game Pass. In an interview last year, Spencer underscored Xbox's goal to offer a wide range of games and enable customers to play anywhere they want. "What we want to offer is choice," Spencer said, noting that Xbox's success is measured by more people playing Xbox games across various platforms, including consoles, PCs, and the cloud.
Xbox's strategy does not hinge on going all-digital
Earlier this year, Microsoft CEO Satya Nadella confirmed that the company has no plans to abandon its hardware business and sees room for further expansion. In February, Xbox reaffirmed its commitment to offering physical game copies as long as there is demand.
Xbox boss Phil Spencer, in an internal town hall, also assured employees that Xbox has no plans to stop producing consoles. In an earlier interview, Spencer highlighted the importance of gaming consoles as the last consumer electronic devices with drives, pointing out the challenges and costs associated with manufacturing these drives.
However, Spencer made it clear that Xbox's strategy does not rely on going all-digital. "Getting rid of physical, that's not a strategic thing for us," he stated.
