- Xbox has increased Game Pass prices following the Activision merger.
- Analysts say this change will net a 200% revenue increase for the gaming giant’s subscription by 2025.
- The average revenue from each user is estimated to rise by up to 35% by then.
Xbox is doing its best to make Game Pass a sustainable source of revenue for the future. While the service has no shortage of AAA titles, it hasn’t been able to avoid the plateau that such subscriptions eventually run into.
Following these problems and the Activision merger, Xbox raised Game Pass prices last week. According to analysts, this won’t be the last price hike, but these measures will lead to the service generating $5.5 billion next year.
Why it matters: Microsoft no longer relies on console sales alone to generate revenue. As such, Game Pass has become even more important for the gaming giant.
Following the recent price hike, Ampere Analysis’ head of research, Piers Harding-Rolls, gave an interesting prediction regarding Microsoft’s revenue forecasts. According to his analysis, Game Pass revenue is expected to rise to a whopping 5.1 billion by 2025.
To put things into perspective, the service made up to 1.7 billion in 2022. This figure comes from Phil Spencer, who stated that Game Pass accounts for about 10-15% of Xbox’s annual revenue.
According to the analyst, Game Pass Ultimate’s price hike will be the catalyst for this growth. In total, Microsoft would see its revenue going by more than 200% compared to 2022.
Following the changes, Game Pass Ultimate is the undisputed best deal on consoles. Whether it be for day-one games or online access, this tier offers the best bang for your buck.
Meanwhile, Game Pass on PC remains the best deal overall. However, this tier has seen a price hike of its own.
As per the analyst, consumer spending on the service will grow by up to 15.3% in 2025. A smaller increase of 5.4% is expected this year.
Nonetheless, Game Pass seems to be heading toward a major turning point. The library in 2025 seems like Xbox’s best first-party output in years, so the service should be able to reap the benefits of several years of planning soon.
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[News Reporter]
Bawal is an MBBS student by day and a gaming journalist by night. He has been gaming since childhood, growing fond of the creativity and innovation of the industry. His career as a gaming journalist started one year ago, and his journey has allowed him to write reviews, previews, and features for various sites. Bawal has also been cited in reputed websites such as Screenrant, PCGamesN, WCCFTech, GamesRadar, and more.
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