Xbox Game Pass Expands Reach, Raises Prices

Microsoft has recently announced price adjustments for its Xbox Game Pass subscription service and introduced a new tier that does not include "Day One" games. These changes reflect Xbox's ongoing strategy to expand and refine its Game Pass offerings. Here's a detailed look at what's changing and Xbox's approach to its subscription service.

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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 announced a price hike for its Xbox Game Pass subscription service, as detailed on the company's support page. This adjustment affects Xbox Game Pass Ultimate, PC Game Pass, and Game Pass Core subscriptions.

Here are the new pricing details and changes:

• Xbox Game Pass Ultimate: The premium tier, which includes PC Game Pass, Day One games, a vast back catalog, online multiplayer, and cloud gaming, will see its monthly price rise from $16.99 to $19.99.

• PC Game Pass: This tier's monthly fee will increase from $9.99 to $11.99, while retaining benefits such as Day One releases, membership discounts, an extensive PC game catalog, and EA Play membership.

• Game Pass Core: The annual subscription cost will go up to $74.99 from $59.99, with the monthly price remaining at $9.99.

• Starting July 10, 2024, Xbox Game Pass for Console will no longer be available for new members.

These price changes will take effect immediately for new subscribers starting July 10, 2024, and for existing members from September 12, 2024. Upon renewal, existing members will be charged the new rates on their next billing cycle after September 12.

Current subscribers of Game Pass for Console can continue their membership, including access to Day One games, as long as they keep their subscription active. If it lapses, they'll need to 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 13 months," Xbox stated. This change won't affect any time already stacked beyond 13 months but will limit future stacking post-September 18, 2024.

Rolling Out Xbox Game Pass Standard Soon

Microsoft is also launching a new tier called Xbox Game Pass Standard, priced at $14.99 per month. This tier offers access to a back catalog of games and online multiplayer but excludes Day One games and cloud gaming. Day One games are new titles available on Game Pass on their release day.

The Xbox Game Pass Standard tier includes a wide range of games, 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 provide more information about the release dates and availability of Xbox Game Pass Standard soon.

"We created Game Pass to offer players more choice in how they discover and play games," Microsoft stated regarding these changes. "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 importance of investments in services like Game Pass and Xbox Cloud Gaming. "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 Game Pass, along with first-party games and advertising, as high-margin businesses driving Microsoft's expansion in these areas.

You Don't Need an Xbox to Play Xbox

In a related move, Xbox premiered an ad video showcasing Xbox Game Pass's availability on Amazon Fire Sticks, which turn regular TVs into smart TVs and allow game play. The ad emphasizes that you don't need an Xbox console to enjoy Xbox games.

Subscribers to Game Pass Ultimate can access hundreds of games, including Forza Motorsport, Starfield, and Palworld, using just an Amazon Fire TV Stick.

As part of their broader strategy, Xbox aims to introduce more major titles to Game Pass. In an interview last year, Phil Spencer reiterated Xbox's goal to offer a wide range of games and enable customers to play them wherever they want. "What we want to offer is choice," Spencer said, acknowledging that Xbox's success extends beyond Game Pass to encompass play across consoles, PCs, the cloud, and other platforms.

Xbox's strategy does not hinge on going all-digital

Earlier this year, Microsoft CEO Satya Nadella confirmed that Microsoft has no plans to abandon its hardware business, seeing potential for further hardware expansion.

In February, Xbox confirmed it would continue to offer physical game copies as long as there is demand. During an internal town hall that month, Phil Spencer reassured employees that Xbox has no intention of stopping console production.

In an interview earlier this year, Spencer noted that gaming consoles are "the last consumer electronic device that has a drive," highlighting the challenges and costs associated with manufacturing drives. However, he emphasized that Xbox's strategy does not hinge on going all-digital. "Getting rid of physical, that's not a strategic thing for us," Spencer stated.