Xbox Game Pass Price Hike and New Tier Announced: Expanding Reach While Increasing Costs
Microsoft has announced price increases for its Xbox Game Pass subscription service, alongside a new subscription tier. This move comes as Xbox continues its push to make Game Pass accessible across multiple platforms.
Price Changes Effective July 10th (New Members) and September 12th (Existing Members):
New Xbox Game Pass Standard Tier:
A new $14.99 per month tier, Xbox Game Pass Standard, is launching soon. This tier offers a back catalog of games and online play but excludes "Day One" releases and cloud gaming. Further details on release dates and game availability will be shared later.
Microsoft's Strategy:
Microsoft emphasizes providing choice with varied pricing and plans. Xbox CEO Phil Spencer previously highlighted continued investment in Game Pass, cloud gaming, and cross-platform play. CFO Tim Stuart noted Game Pass's high-margin contribution to Microsoft's business.
Beyond the Console:
A recent ad campaign emphasizes Game Pass's availability beyond Xbox consoles, highlighting its presence on Amazon Fire Sticks. This underscores Xbox's strategy to expand Game Pass's reach.
No Abandonment of Physical Media:
Despite expansion into digital services, Microsoft has confirmed it will continue to support physical game releases and console manufacturing. While acknowledging challenges with manufacturing costs of consoles with built-in drives, Xbox’s strategy doesn't rely on a complete shift to digital.
In short, Xbox is broadening Game Pass's accessibility while adjusting pricing to reflect the enhanced features and expanded platform support.
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