Xbox Game Pass is an essential service for Microsoft, representing both a major showcase for Xbox and a significant source of revenue. In order to maintain the profitability of the service, important decisions will have to be made.
Xbox Game Pass is vital for Microsoft, and aware of its importance, the Tech giant continues to surprise every week with new additions and attractive offers. However, due to profitability concerns, the company appears to be on the verge of making a drastic decision.
A radical decision for Xbox Game Pass
At the Tokyo Game Show, Phil Spencer, the head of Xbox, discussed the future of Xbox and Xbox Game Pass, emphasizing the critical importance of this service to Xbox’s business. Several changes were made to Xbox Game Pass over the summer, including a price increase on June 21 and changes to the Xbox Live Gold conversion, making the process less beneficial. Additionally, the trial period was cut in half to 14 days, and Xbox Live Gold was replaced by Game Pass Core on September 14. All of these adjustments were intended to make the service more profitable for Microsoft and support Xbox’s growth in all markets.
Phil Spencer also affirmed that Game Pass is central to Xbox’s strategy and that the survival of the brand depends on the success and evolution of this service. Yes totally. In response to concerns about future price increases, Phil Spencer therefore confirmed that such an increase was inevitable, while emphasizing the need to offer more value to users. He made a comparison to Netflix, which has raised its prices several times in recent years, suggesting that Xbox Game Pass users should expect a similar pricing trajectory.
With millions of users currently subscribed to the Game Pass, many of whom are happy to use it, I think it is inevitable that the price will increase in the future, although it is essential that we offer more value than that.
Phil Spencer during an interview with Game Watch.
An increase coming soon?
With Microsoft having promised not to increase the price of Game Pass following the acquisition of Activision, an increase in the current year seems unlikely. However, a price increase could be considered with the addition of major games such as Call of Duty, which is not expected to arrive on Xbox Game Pass until 2025, according to the British regulatory body CMA. In conclusion, Game Pass remains an essential part of Microsoft’s strategy, which envisages adjustments and improvements to ensure the long-term profitability and growth of the service. It is therefore wise to prepare for a possible increase in the price of the service. Without details on a potential date.
To take the example of Netflix, the price increased from 10.99 to 11.99 euros. We can therefore envisage, without getting too far ahead, an initial increase of around one euro (let’s hope not more). What is more frightening, however, is that for Disney+, the August price increase was 3 euros… We hope that this will not be the case for Microsoft’s service.