Xbox Game Pass Price Hike and New Tier Announced: Expanding Reach, Increasing Costs

Microsoft has announced price increases for its Xbox Game Pass subscription service, alongside a new tier omitting "Day One" game releases. This article details the changes and analyzes Xbox's broader Game Pass strategy.

Price Changes Effective July 10th (New Subscribers) and September 12th (Existing):

The updated pricing structure includes:

• Xbox Game Pass Ultimate: Increases from $16.99 to $19.99 per month. This top tier retains PC Game Pass, Day One games, the back catalog, online play, and cloud gaming.
• PC Game Pass: Increases from $9.99 to $11.99 per month, maintaining Day One releases, member discounts, the PC game catalog, and EA Play.
• Game Pass Core: Annual price rises from $59.99 to $74.99 ($9.99 monthly).
• Game Pass for Console: Discontinued for new subscribers starting July 10, 2024. Existing subscribers can maintain access unless their subscription lapses. After September 18, 2024, the maximum stackable time for Game Pass for Console codes will be 13 months.

Current console subscribers retain Day One access until their subscription expires. Once lapsed, they must switch to another plan.

Introducing Xbox Game Pass Standard:

A new $14.99 per month tier, Xbox Game Pass Standard, offers a game catalog and online play, but excludes Day One games and cloud gaming. Further details on release dates and availability are forthcoming.

Xbox's Expanding Strategy:

Microsoft emphasizes providing diverse options, citing different price points and plans to cater to varied player preferences. This aligns with previous statements by Xbox CEO Phil Spencer and CFO Tim Stuart, highlighting Game Pass as a high-margin business driving expansion.

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Beyond the Console:

Xbox's recent marketing campaign highlights Game Pass' availability on Amazon Fire Sticks, emphasizing that an Xbox console isn't required to play. This underscores the company's push for broader accessibility.

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Despite this expansion into digital platforms, Microsoft maintains its commitment to hardware, confirming plans to continue producing consoles and offering physical game copies.

In conclusion, Microsoft's adjustments to Xbox Game Pass reflect a strategy focused on expanding its reach across multiple platforms while simultaneously increasing revenue through price adjustments.