Xbox Game Pass: The Deal That Just Keeps Getting Worse
Some things happen slowly, and then all at once. So it appears to be with Xbox Game Pass. Once hailed as the “best deal in gaming,” it’s now best known as the deal that just keeps getting worse. The recent 50-percent price hike this week feels like a death knell, if not for Microsoft’s $5 billion annual subscription business, then at least for the perception that the company is trying to meaningfully compete by rewarding its long-time fans with something they can’t get anywhere else. It feels like the shift began way back in 2022 when Xbox boss Phil Spencer mentioned the possibility of raising prices on certain things, despite maintaining the prices at the time.
The Slow Decline of Game Pass
After years of Game Pass boosterism, Phil Spencer also expressed doubts about the subscription service’s long-term growth prospects, estimating that Game Pass would only make up around 15 percent of Microsoft’s content and services revenue. Fast forward three years, and with over $70 billion in acquisitions impacting Microsoft’s gaming division, we are now seeing the consequences of that decision on the ground. Microsoft has doubled the price of Game Pass in the last two years, along with other price increases on its consoles and games. The company has even laid off hundreds of developers, closed studios, and canceled promised games, leading to a sense of disappointment among loyal fans.
The Latest Game Pass Overhaul
The most recent Game Pass Ultimate price increase to $30 a month was not just about the price tag, but also about what Microsoft was offering in return. The addition of games like Hogwarts Legacy, old Assassin’s Creed titles, and Fortnite skins did not seem to justify the higher cost, especially when compared to other mainstream content subscription services. The focus seemed to be on extracting a premium from existing customers for day-one access to popular titles like Call of Duty. This move, along with other changes, reflects a shift towards monetizing the most dedicated users rather than expanding the overall user base.
The Future of Game Pass
As Microsoft continues to raise prices and make changes to Game Pass, some speculate about the possibility of introducing a cheaper, ad-supported tier in the future. The company may need to explore different offerings to reach a broader audience and ensure the sustainability of the service. However, for now, it seems that Microsoft is prioritizing maximizing revenue from its existing user base, even if it means alienating some long-time fans. The current trend of pricing out a large portion of the audience raises questions about the company’s long-term strategy and its commitment to serving all gamers, not just the most affluent ones.
In conclusion, the evolving landscape of Xbox Game Pass raises concerns about the direction Microsoft is taking with its subscription service. While the company may be focusing on maximizing profits and catering to high-spending users, it risks alienating a significant portion of its fan base in the process. The decision to prioritize day-one access to blockbuster titles like Call of Duty at a higher price point may not sit well with all subscribers. As Microsoft navigates these changes, it will be interesting to see how the gaming community responds and whether the company can strike a balance between profitability and customer satisfaction.
