Credited from: REUTERS
Microsoft has announced a 50% increase in the subscription price for its Xbox Game Pass Ultimate tier, raising the cost to $29.99 per month. This change is part of a broader strategy to enhance the gaming experience by incorporating more premium titles and improved cloud gaming capabilities. Alongside this hike, the company introduced new tier names, designating the cheaper and middle tiers as "Essential" and "Premium," while including unlimited cloud gaming across all tiers, maintaining the prices of these except for Ultimate, according to Reuters and India Times.
The announcement coincides with the introduction of a revamped rewards system and a significant expansion of the game library, which now features over 400 titles and promises more than 75 new releases each year, including blockbuster titles like "Call of Duty" and "Hogwarts Legacy." With 45 new titles already added, the company aims to enhance the value proposition of the Game Pass service, stating that they are “focused on delivering more value, more benefits, and more great games,” according to India Times.
However, the price increase has not been well received by the gaming community. Many users expressed their frustration on social media platforms, leading to a surge in cancellations that temporarily crashed the cancellation page. Criticism has highlighted the increasing costs within an already expensive gaming market, prompting some gamers to label the price hike as “anti-consumer.” Industry experts have warned that while subscription services like Game Pass initially appeared affordable, significant price increases could alienate customers, according to BBC.
In addition to the subscription changes, Microsoft has recently raised prices for its Xbox consoles and accessories. These adjustments have been attributed to ongoing market conditions, including inflation and the costs associated with game development. This year, Microsoft also announced layoffs impacting 9,000 employees, noting a pivot towards investing billions in artificial intelligence, which has raised further concerns about its commitment to gaming, according to BBC and Reuters.