Threads
- Microsoft recently confirmed Game Pass price hikes for nearly every tier of the service.
- Analysts believe this won’t be the end of the price hikes.
- They believe that Microsoft is now trying to maximize the amount of money from each subscriber, opening doors to more price uplifts.
People were concerned about price hikes for Game Pass when Microsoft was chasing the Activision Blizzard deal. However, Microsoft assured audiences that there would be no price hikes due to the merger.
Much to everyone’s surprise, the gaming giant announced a big price bump for nearly every Game Pass tier yesterday, leading to disappointment among fans. Despite the reaction, it seems Microsoft has further plans for price hikes.
Why it matters: Microsoft bought Activision Blizzard for nearly $70 billion. The gaming giant is now looking to profit from this transaction.
Analysts predict that Game Pass will see another price bump in the future.
Microsoft’s latest changes mean that Game Pass Core went up from $59.99 annually to $74.99. Meanwhile, PC Game Pass and Ultimate have seen a $2 and $3 per month price uplift, respectively.
According to a report by Wccftech, MIDIA Research analyst Rhys Elliott believes Microsoft has reached its limits as far as new subscribers on consoles go. The company now aims to maximize revenue per subscriber.
Therefore, its latest introduction attempts to upsell console gamers to Game Pass Ultimate. This makes sense since the tiers below Ultimate are much worse than they used to be.
Moreover, he went on to explain that eliminating day-one games from the console tier will allow Microsoft to limit cannibalization of first-party games to an extent. This will further help it maximize revenue from each user.
Xbox seems to be slowly approaching a similar point on PC since Game Pass has also seen a small price hike on this platform. All in all Microsoft’s goal is to make as much profit as possible, so fans should prepare themselves for even more price hikes.
According to the analyst, the timing for this price hike is quite appropriate. With Black Ops 6 coming to the service, Microsoft will be able to pair the new price with the inevitable growth boost to the service.
Game Pass is slowly losing its value for budget gamers. While it remains an enticing deal after the new price, this may no longer be the case if Microsoft continues to introduce incremental price uplifts to the subscription.
Thank you! Please share your positive feedback. 🔋
How could we improve this post? Please Help us. 😔
[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.
Join Our Community
