Microsoft is embarking on a significant transformation of its Xbox Game Pass subscription tiers, introducing price increases for both Xbox Game Pass Ultimate and PC Game Pass in select regions. The monthly fee for Ultimate has surged to .99, marking a substantial 50% increase, while the PC Game Pass will now cost .49, reflecting an approximate 40% rise from its previous price of .99.
Enhancing Value Amid Price Adjustments
Dustin Blackwell, the director of gaming and platform communications at Microsoft, addressed the changes in a recent briefing with The Verge. He acknowledged the discomfort that often accompanies price hikes but emphasized the company’s commitment to enhancing the value of their offerings. “We understand price increases are never fun for anybody, but we’re trying to reinforce by adding more value to these plans as well,” he stated. Blackwell assured that the company is actively listening to player feedback to tailor their services to community desires.
To cushion the impact of these price adjustments, Microsoft is expanding the game catalog for each tier and enhancing access to cloud gaming services. Ultimate subscribers will now enjoy additional perks, including access to various Ubisoft games through Ubisoft Plus Classics and the Fortnite Crew service, which provides seasonal content for Fortnite enthusiasts. Furthermore, Ultimate will feature the highest tier of Microsoft’s cloud gaming service, boasting 1440p resolution support and improved bitrate on select devices. Microsoft has also committed to increasing the number of Xbox games available on release day for Ultimate subscribers.
Rebranding and New Tiers
In addition to the price changes, Microsoft is rebranding its Xbox Game Pass Core to Xbox Game Pass Essential, priced at .99 per month and offering around 50 games. The Standard plan has been renamed Xbox Game Pass Premium, now available for .99 per month, featuring approximately 200 games. Both tiers will include access to new cloud gaming features alongside PC games. While these services will not exceed the costs of Core and Premium in the United States, adjustments in pricing will occur in certain regions.
For PC Game Pass subscribers, the updates appear less favorable. Blackwell noted, “The only change happening for PC Game Pass subscribers is that they won’t be getting Ubisoft Plus Classics, but they’ll be getting about 50 additional Ubisoft titles across PC Game Pass.” He reassured users that day-one titles would continue to be part of the offering.
Context of Price Increases
As highlighted by Eurogamer, these price hikes come on the heels of record earnings for Microsoft, with Game Pass generating billion last year and an overall revenue increase of 18%, reaching .4 billion. Additionally, the company has recently raised the price of its console hardware in the United States. However, discussions persist regarding the implications of video game subscription services for participating developers.
Amid these developments, Microsoft is facing a consumer boycott linked to its business partnerships with the Israeli military during ongoing conflicts in the West Bank and Gaza, which a UN commission has classified as genocide. The Boycott, Divest, Sanctions movement has urged individuals to cancel their Game Pass subscriptions until Microsoft fully divests from its ties with the state. In response, the company announced plans to block Israeli military access to Azure and AI services related to a specific surveillance project that breaches their terms of service, although their broader business dealings with Israel’s armed forces remain intact.
This article has been updated with additional information regarding changes to PC Pass and a link to an article discussing the viability of subscription platforms in general.
