Xbox Game Pass may go up in price again

Earlier this week, the Microsoft generated controversy by revealing adjustments to Game Pass subscription prices for PC and Xbox consoles. It also revealed a new Standard plan for new Xbox users, excluding access to Day One games, that is, simultaneous releases with the stores.

It looks like Microsoft’s gaming platform is in for more challenging times ahead, with potential valuation hikes on the horizon, according to industry experts.

Microsoft’s statements about Game Pass costs have been ambiguous. Amid legal proceedings over its merger with Activision Blizzard, its lawyers have assured that such a merger would not raise prices. However, Phil Spencer, CEO of Microsoft Gaming, has previously admitted that increases are expected eventually.

After Microsoft promised to release Call of Duty: Black Ops 6 in the service, many anticipated this increase. But, will we see more increases in the future? Rhys Elliott, an analyst at MIDiA Research, says yes. See what he had to say in full:

“Xbox has largely maxed out its console subscriber base, so it’s looking to maximize average revenue per paying user (ARPPU) and onboard new subscribers with the precedent of higher prices. Call of Duty is poised to bring in more subscribers, so the timing makes sense. Expect more price increases in the future. The rising PC prices suggest growth is starting to saturate there as well. Pulling PC gamers away from Steam is nearly impossible…

Currently, the standard Game Pass plan on consoles doesn’t grant immediate access to paid online modes like CoD (Ultimate does), so the current base tier leaves a confusing legacy that doesn’t fit with the new direction. Xbox has been hiding Game Pass for consoles in its store lately, so it was expected that these initial changes would happen.

A replacement for Game Pass Console, Standard is basically Game Pass Core with a larger library of games (and no day one releases). It’s a subscription plan that offers a middle ground between Core and Ultimate. Removing day one titles also serves as a training ground for subscribers who didn’t stick with Ultimate, forcing them to buy new premium games again, once again increasing ARPPU. Cannibalized premium revenue has been a huge opportunity cost for Xbox (somewhat offset by paid early access).

Ultimately, these changes reflect Xbox’s recent strategy: to drive fan revenue for Ultimate and increase ARPPU ahead of the company’s massive mobile/cloud initiative. PC and console will remain important, but those markets are reaching saturation and Xbox needs growth (it’s a public company living in an era where big tech is looking for efficiency and cutting costs). Xbox’s big platform-independent game continues.”

Microsoft has previously acknowledged that Game Pass’ growth on consoles has stalled. Analysis suggests the platform is also nearing its peak on PCs, facing competition from Steam and the impact of rising PC prices.

The launch of Game Pass on Amazon Fire Stick was accompanied by a campaign emphasizing that you don’t need to own an Xbox to play. This indicates that Microsoft is eagerly seeking to expand its subscriber base, even if it means sacrificing your console.

However, it is crucial to note that Microsoft now has the ability to shape its user base and profit from its investments. Strategies include creating hurdles to encourage migration to the Ultimate plan or limiting alternatives by forcing purchases of games at launch.

Given the possibility of further increases in the price of Game Pass, are you considering maintaining your subscription?

Fonte: Wccftech