Xbox Game Pass is an important pillar of Microsoft’s gaming business, differentiating it from the competition.
The subscription allows players to enjoy major first-party titles at release for $11/month while also introducing several third-party titles at release. However, the service has recently seen a price increase.
In July, Microsoft raised the price of Xbox Game Pass from $10 to $11, and the ultimate tier jumped from $15 to $17. While this was a small increase, the gaming giant predicts another price increase is inevitable.
Why it matters: A major benefit of Xbox Game Pass comes with the low cost of entry, which leads to an exceptional value proposition. However, subsequent price uplifts will harm this value.
During a recent interview with Game.watch, Phil Spencer discussed the recent Tokyo Game Show and the Japanese side of the industry. When asked about a potential price increase for Xbox Game Pass, he replied:
“I think it is inevitable that it will rise in the future.”
He then reflected on the recent price increase, claiming that the decision was made after careful consideration since Microsoft understands the importance of pricing the subscription well.
Phil Spencer elaborated that even if the price goes up again, Microsoft wants to maintain the value proposition that Xbox Game Pass is well known for. Unlike previous console generations, price uplifts have become a common trend recently.
Both PlayStation and Xbox have raised prices across subscriptions, with the former announcing an uplift for annual PS Plus subscriptions last month. On the other hand, the PS5 and Xbox Series X also cost more than they were launched for in certain regions.
The recent leaks from Microsoft suggested that Xbox pays millions of dollars to bring major titles to the service. Therefore, it is only a matter of time before Microsoft has to make a tough decision.
However, Phil Spencer remains committed to maintaining the value of Microsoft’s subscription service. Therefore, a future price hike, while inevitable, may lead to a better service in the coming years.
Xbox Game Pass has added massive titles like Starfield and Lies of P in 2023. The highly promising Xbox lineup for 2024 is also confirmed to be arriving on the subscription, providing plenty of value for the current asking price.
While Phil Spencer did not elaborate further or provide an exact window, price hikes are unlikely to happen for the rest of 2023 to ensure smooth sailing for Xbox during the holidays.
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Abiyan is on track to complete his Computer Science bachelor’s degree. His enthusiasm for writing and gaming motivates him to keep readers and gamers updated with the latest information from the industry. In his free time, Abiyan enjoys playing Dota 2 and Rocket League. Abiyan has also been cited in reputed websites such as Kitguru, Comicbook, GamingBible, Eurogamer and Gamingbolt.