Microsoft Defends Game Pass Price Increases, Promises More Value

• Microsoft raised Game Pass prices, including a 50% hike for Ultimate, which now includes more games and features.
• Ultimate now offers over 400 titles, 75+ day-one releases, and additional perks like Ubisoft+ Classics.
• The move boosts revenue but risks cancellations amid competition and subscription fatigue.

Microsoft is defending its decision to raise Xbox Game Pass subscription prices by as much as 50%, saying the increases reflect a substantially improved service that will deliver more games and features to subscribers.

The Redmond, Wash.-based company this week implemented sweeping price increases across its three-tier Game Pass service. Xbox Game Pass Ultimate, the top tier, now costs $29.99 a month, up from $19.99. The PC Game Pass tier rose nearly 40% to $16.49 from $11.99, while the mid-tier Premium plan saw similar adjustments.

The price changes, which took effect Oct. 1, come as Microsoft seeks to shore up revenue from its gaming division and recoup investments in content and infrastructure. The company has spent billions acquiring game studios, including its $69 billion purchase of Activision Blizzard Inc. last year.

What Game Pass Subscribers Get for Higher Prices

Microsoft said Ultimate subscribers now have access to more than 400 titles globally, including over 75 games available on their release date annually—a 50% increase from last year's 50 day-one titles. The tier also includes Ubisoft+ Classics, Fortnite Crew membership and enhanced 1440p cloud streaming. Even the entry-level Essential tier now includes online multiplayer and unlimited cloud gaming.

"We understand price increases are never fun for anybody," said Dustin Blackwell, Microsoft's director of gaming and platform communications, in an interview with tech publication The Verge. "It's something we don't take lightly, and we're listening to the feedback of players and the community."

The pricing strategy represents a test of how much value subscribers place on access to a large game library versus owning individual titles. Microsoft faces competition from Sony Group Corp.'s PlayStation Plus and Nintendo Co.'s online services, as well as broader "subscription fatigue" among consumers juggling multiple entertainment services.

The success of Microsoft's approach will depend on whether subscribers believe the expanded offerings justify the higher monthly bills. Early customer reaction has been mixed, with some users expressing frustration on social media while others have praised the additional content.

Microsoft has not disclosed current Game Pass subscriber numbers in recent years. The company last reported having 25 million subscribers in early 2022.