Xbox Boss Phil Spencer Hints At Plans To 'Raise Prices' In The Future

So it's not just playstation then, I assume once the Activision deal goes through that's when they will start raising prices.

I don't think they will introduce £70 games, but I think gamepass and console prices are definitely getting raised.

But, I think raising the console price will be fine, playstation have done so and they are still selling the most consoles weekly even overtaking the switch in Europe and America.

And raising the gamepass price by £1-£2 per month won't hurt it, still would be the best subscription for value especially when first party games start hitting the service regularly.

Hope it's just the hardware and not the games. Both are bad of course, but I'm choosing the lesser or two evils.

I stick to my original prediction:
Game Pass Ultimate will eventually become the only plan available for a flat $15 fee. Well that and the family plan that is $25.

GamePass PC and GamePass console will go away, potentially grandfathering old subscribers but not allowing new subscriptions.

If you want proof that the way, notice how there is not any hint at a “GamePass console family plan”

Xbox live gold will go away as an independent thing, becoming simply a feature of GamePass Ultimate.

I don’t see them increasing the price of consoles, in fact, expect them to cut the price of the XSS by Christmas 2023. We might see a temp $50 cut this Christmas or Black Friday.

New first party Games will likely just follow the Sony $70 bump by the end of the year, when Activision/Blizzard deal closes, don’t expect to see those games go down in price.

Xbox is gonna increase the annual Xbox Gold/Ultimate Game Pass

Not surprised. Big sub services are very expensive to maintain. I hope that if Game pass price goes up, the cost to play online will disappear.

I’d welcome a price increase if we could get some damn games.

Not playing nice Mr. Phil, not at all. It's hard for me to believe MS didn't plan a price hike already, just a couple of months back when Sony did..
Anyway, this is exactly what is wrong with all subs out there. They go from decent value proposition to expensive habit.. and then you stick with it until they get an ads tier.

Hopefully this isn't a repeat of January 2021 where they tried to price hike Gold in an attempt to force people to Game Pass.

https://news.xbox.com/en-us/2021/01/22/update-on-xbox-live-gold-pricing/

Me and the family get enough value from gamepass to be happy to pay a small price rise, as long as it isn't too much

I can see Gamepass increasing in price. Maybe, they'll start with stopping the £1/$1 trick and cancelling Xbox Live as a separate service to Gamepass. Then only offer Gamepass Ultimate going forward.

Then when the dust settles, a small increase in price itself.

Hardware-wise, maybe the Series X will have a small increase.

Well I have said that they'll have to raise the price of gamepass eventually for a long time lol

@UltimateOtaku91 they'll already have £70 games when they acquire Activision lol , they wont reduce the prices of games like cod back down to £60 doubt anyone will call Microsoft out on it though lol

At least he’s giving fair warning. Still no date but most things are getting hit by inflation. I work in produce and we are seeing all time highs on product when demand spikes and their are shortages. If game pass does go up then I’ll cut a different streaming platform from my budget. My entertainment roi beats any other platform I’m subscribed to.

Xbox has been super subsidizing its console and subrscription plan being a big loss leader in the process to gain marketshare. No doubt they are gonna raise it if Activision goes through as thats hundreds of millions in revenue lost in sales that would need to be replaced

I can imagine Bill Gates with his hand out while staring at Phil Spencer

I guess 3.6 Billion isn’t enough a return? Sounds about right.

@D3layedreaction that doesn't mean they made that much, just collected that much. Unless they share how much GamePass costs to operate we don't know how much it actually profits. I doubt they would talk about raising prices unless there was a good reason

I’m smiling due to a quiet time on the Xbox front AAA wise, I have purchased both the new Rabbids sparks of hope and Bayonetta 3 physical for £42.99 each. Not bad, but great games and for a good price considering there are £70 games about now a days.

We tried to tell y'all this is business

@uptownsoul That's fanboys for you

What!? Sony are supposed to be the bad guys in gaming! That’s not acceptable!

Microsoft discounts its games enough for me not to care very much. I don't have a PS5, but I'd feel the same way if I did.

@somnambulance I honestly doubt Xbox will increase the price of hardware, and that was what they threw shade at Sony for.

The most likely increases from Xbox are going to be GP related and starting to sell games at $70.

For me, I think it will be the software where the price gets an increase. Increasing hardware cost for what is now a 2 year old piece of kit makes 0 sense (that's right you Muppets at Sony).

I wonder if they'll increase their first party Games by 10 bucks and keep the Game Pass costs the same. You know, just to say, "hey look at the insane value of our subscription service".

@Stnkygrngo man, I absolutely love that Mr.T profile pic of yours! 😂

Microsoft sits on tens, if not hundreds, of billions of dollars in cash. Phil's grift about caring for people in "uncertain times" while he simultaneously threatens us with price hikes (and while his company hoards the mother-lode) is the kind of utterly tone-deaf nonsense that only a CEO could peddle.

@mac01208 they changed the dash yesterday for insiders , the new dash is a hell of alot better ,the pins and pinned games are back

I think Xbox knew they couldn’t raise prices this year when they have had a pretty slow 2022 games-wise. If they do the raise in 2023 then it can kind of be blended into the value of the banger games dropping like Starfield etc.

Thats the thing for the consumer; if the value is there with the increase then it’s all good. If they raised it this year and nothing changed on the game front then it would have caused issues.

Hardly surprising, this is going to happen and to a point we need to start accepting it. The key for me it's what it'll mean for the quality of services. If this is partly enabling a steady flow of good games both FP and TP, then I think it's all right-ish. Let's hope they don't get carried away, it'd be good if Sony started to make MS worry a bit more on for example the subscription front, never a good thing when corps start to have a too dominant position. We'll see what happens I guess.

I will not pay £70 for ANY new game from anybody. I love gaming but I can’t justify it. I’ll do what I do now with Sonys games, wait for deep sales.

I would pay a little more for Gamepass, I think it’s an absolute steal at its current price.

That’s also the fundamental difference with Sony and MS this gen. Want to play Sony exclusives day 1? Pay a premium you have no choice. Want to play Xbox exclusives day 1? Pay a premium or play on Gamepass. You have a choice.

@Fenbops true, except no real new exclusives on GP for a while. But in theory true

@Cikajovazmaj yep this years been a write off for triple A exclusives on Gamepass. I expect much better next year.

Well they can cut costs on XBLG and GPU by getting rid of Games With Gold so they don't have to raise the price.

Of course prices have to go up eventually - that's inflation. Just remember that people will go where the 'value' is and if they perceive something as 'expensive' or not worth the cost, then they will go elsewhere.

Don't forget, MS are competing with every other Publisher, every other platform, every other service etc. Its not 'just' Playstation vs Xbox with Nintendo kind of left to do its own thing. You don't 'need' to buy an Xbox, don't 'need' to actually 'buy' games - you can find plenty of F2P options on hardware you probably own - whether on iOS/Android devices, PC's or various other hardware - there are other services too and likely more will 'compete' directly with Game Pass as more and more utilise the Cloud.

If they can keep growing Game Pass at a rate that covers their 'costs' of Running Xbox and its Studio's and maintaining the supply of 'new' games as well as generate enough of a profit margin, then prices will likely keep reasonable - its if people leave services and they are still expected to maintain the same standard and supply. No company is going to 'work' for essentially nothing (no Profit) or lose money...

If Xbox raises its 'Game' Prices to £70/$70 in line with Sony and other Publishers, It makes Game Pass more appealing in my opinion and will either encourage more to subscribe or make a bit more 'money' from non-subscribers to offset 'rising' costs.

Lets be honest here, you don't actually need to buy Hardware these days to play Xbox games - but currently can't really sell to 'cloud' only gamers as they can't access those games if they are no longer available through the Cloud. If they can open up the Cloud so that any Purchased game remains accessible to the owner, that too may help keep prices down as that would help 'cover' increasing costs and help maintain profit/growth...

@somnambulance
Yes Nintendo seem to be trucking along ok this year and doing well. Especially with all gossip and rubbish back and fourth etc with Sony and Microsoft having their moments.
It’s sort of like tranquility with Nintendo just doing their thing and knocking out some dam good exclusives and a good price of £42.99. And of course the BOTW2 release date for May 2023.

You all need to SWITCH if haven’t already done so.
It’s so tranquil over here in Nintendo World and with some dam good new AAA exclusives at £42.99 physical purchases. It’s such a simple straightforward life over here. 🎄🎄🎄

@Would_you_kindly you’ve a more chance of the guys on the likes of pushsquare calling MS out on cod being still £70 than you have of them praising MS for losing the price back to £60… I’d put money on that.

So they can spend billions on Activision but have to raise prices? Sure, alright then.

Gamepass subs were always destined to increase in price - they’ve been threatening to for years. And it make sense to do so when they finally start delivering on the promise of these first party AAA games hitting the service day 1. (This is why nobody should want them to get rid of gold now).
You also have to take into account the value proposition - Sony, by encouraging the adoption of £70 has actually added greatly to the value of gamepass. So day 1 3rd party deals and day 1 first party releases next year should easily ensure theirs still lots of value there should a price increase happen (which it will).

Price on their first party games raising to £70…I’m not sure. But again, if starfield is £70 and also day 1 on gamepass…we’ll, adds to the value of gamepass doesn’t it. And they want subs…so maybe they will raise the price of games to herd more people onto gamepass.

I honestly can’t see them raising the price of hardware though. We’re destined to see discounts on those consoles blackfriday.

I'm totally against a price increase on hardware and frankly I don't think Microsoft can rely on their fanbase to virtually be ambivalent like it happened when Sony increased the PS5's retail price.

Closing down the £1/$1 conversion loophole and a small increase in the monthly subscription price are much more tolerable, compared to a hardware or software price hike in my opinion.
The economic outlook looks even grimmer for next year, this should be a consideration on any decision made.

I understand that prices do go up and GamePass is still good value. But I hope this isn't because of Microsoft's constant obsession with buying gaming companies. Why should we pay for their spending habits. Don't bite the hand that feeds you M$.

His exact words sound like a disclaimer. It will depend on many factors. Making games more expensive won't help anybody but lowering the price of games will lead to more sales and more income because games are not houses and digital copies cost zero to make. Physical copies aren't that expensive to make either. This applies to any video games publisher, not just Microsoft. This generation, I have only paid full price for a few games that I wanted to support specifically. I don't buy new games normally because of Game Pass and because I'm not a teenager anymore and I prefer to spend that money on other things. I will be willing to pay for any subscription a price that I'm taking advantage of.

I prepaid until 2024. The problem is I rarely play any Game Pass games I didn't already pay full price for. I'll be letting it lapse mainly due to the fact that I don't use the service. If they are increasing the prices, I want to see better content worth downloading.

It worked out for PS and Occulus. So of course they gonna do this too. Gamepass gonna cost more soon.

Lol, how some peoples attitude changes! Sony were up front and simply did what they felt they had to, but of course they were evil for considering raising prices when times were tough.
Phil specifically said they would not be raising prices, but now they are back tracking, which is even worse than being honest in the first place, but will still get given a pass from the usual suspects. Double standards, theres a lot in gaming!

@Dr_Luigi
Some very thoughtful and valid points raised there.
Nintendo do have areas they could improve in for sure, but no way near the storm in a tea cup that Sony and Microsoft seem to be creating at the moment.

@Dezzy70 have a switch, hardly been switched on since i bought it. Seriously, never finished a single game on it.
Its a decent handheld, but pig awful through a tv. As I dont need a handheld and have far superior options for putting through the telly, its simply never gonna be used. I certainly dont envy you playing on that platform, tech wise its like going back 15 years.

@Dezzy70 fully agree the switch is the perfect console to complement a ps5/series, for quiet periods from playstation/xbox with no new games for ages the switch is sure to have a new game every month or two. I'm currently swamped on the switch. I have xenoblade chronicles 3, Mario and rabbids sparks of hope, fire emblem warriors three hopes and Bayonetta 3. Harvestella coming next week, then Pokémon violet two weeks later, then dragon quest treasures 3 weeks after that, then 2023 there's fire emblem engage straight away, then one month after that it's Theatrhythm final fantasy and Kirby return to dreamland. Plus splatoon 3 launched last month. From someone who owns all three consoles I can tell you nintnedo are providing the most.

If they're small increases, fine, whatever. If they're significant and they don't increase the value alongside it, then there's a problem. I haven't seen more than 3 or so games so far that cost $70 instead of $60 that justify it, so if they plan on doing that for their games there'd better be noticeable differences.

Regarding Switch, it's true that the TV output shows its deficiency. I'd add that the Switch Lite screen displays a blurry video. I guess that Switch OLED is better but the price for a mobile chipset that was already dated in 2017 is excessive, not to mention the low quality of the joy-cons. Nintendo should make better hardware, just like they used to.

@Titntin It's not backtracking, he is literally saying nothing. "Prices may go up int he future" is economics 101.

Now where software and computer based hardware is concern, prices are SUPPOAED to decrease (screw your greed Nintendo) because the depreciation of old tech is greater than inflation. If Series X goes up in price without a revision, then yes, that would be hypocritical.

But Game Pass IS going to increase in price some day. Literally every service on the face of the planet does unless it is killed off first. Amazon Prime, NetfLGBTPQIx, Disney+, are all recent examples that fallow the same business model as GPU. If you keep the price the same on an ongoing service over several years that service loses value based solely on the concept of inflation.

LMAO LMAO LMAO LMAO!!!!!!

For at least a year I've said game pass is not that great a deal since majority games are indie 8 bit Nintendo lava pit jumpers. And not only was I made fun of or critized but people kept hammering how $10 is such a greeeeeeeat deal.

Every single time I said you are being fooled hardcore. Microsoft is only doing the street dealer business model. Give it to you free or very low cost so you get a taste only then jack up price. Just wait.

Again I am correct. 100% right! Phil all but confirmed it.

Please keep making fun and chastising me. Really. Please do.

@Titntin
Each to their own and of course cannot disagree about the tech of course and the big tv thing.
I play dock on and LG C2 65” and I think a top end OLED helps a little with the right settings for sharpness and clarity.
I just can’t miss out on those pure playable games that I really enjoy, what I call the Nintendo magic with their big titles.

@UltimateOtaku91
Actually at the minute as not a FIFA or COD fan, the Switch is my prime console getting all my time with Sparks of Hope, MK8 online the only old game I play and some Splatoon 3, campaign, online battles and salmon run.
Probably grab Bayonetta 3, so glad it came out top end, not a Pokémon fan, but of course BOTW 2 next May.

@Dezzy70 tbh I'm the same, the switch is taking up 60% of my gaming time, how far you in Mario and rabbids? I just got to the third planet and its 100% better than the first game already, I love the sparks but can make the game mega easy.

@UltimateOtaku91
With Sparks I’m playing the 100% game on each planet so about half way on planet number 2.
I’m not great turn based combat but really enjoying it though. Yes the sparks are great and the game deserves its 89% meta score.

@UltimateOtaku91
The thing I like about it, it makes me think and try different ways of doing things in combat when I fail. A massive relief from those open world knock the task of list games with no thought, which I much needed right now.

@Dezzy70 I hear you, though I shudder to think of those games on a 65 inch. I tried it once, but never again.
Much as im always a gamer at heart, I spent 20 years making sure games looked at their best, I simply cant turn off that vision even though im not a dev anymore. I look at bayonetta and whilst I applaud their design and what they have achieved, its really obvious how much the tech has held that title back, and unfortunately that stops me from buying into it. They say ignorance is bliss and this is one case where I wish I could turn off dev analysis, but I cant.
Tbh, most of the 'classic' nintendo titles simply dont appeal to me anyway, so I dont feel im missing much. It IS the home of jrpg though, but fortunately I have enough on PS, xbox and PC to not feel the need to dip in on switch. It sits right next to me though, maybe ill blow the dust of it and play one day! BOTW2 will be hard to resist....

@GreenRangerGohan Hes not saying nothing, which is why this article exists.
Just a few weeks ago he smuggly stated they have no plans to increase prices in response to Sony increasing theres. Now hes saying they will, even though hes not committed to a time line. Thats absolutely back tracking.
"we wont increase prices"
"we will increase prices"

Already prepared my self with an Ultimate subscription till 2025! Let them come!!!!!

It's OK. The service is great, so I can pay a bit more.

@Titntin
For many many years I have been a graphics junky without any doubt. The best console with the best graphics. I even had a NeoGEO back in the day.
I was dam graphics crazy.
Until early this year 2022 it all started, yes of course the new consoles I have or had and the graphics of course the best on console. But the games, they are getting so the same so repetitive and the graphics have hardly moved on since the end of the PS4 days. Not in a massive wow way for sure.

This has been putting me off over the course of this year, so I’ve leaned back to the Switch, of course there is repetitive their, but having been off the switch for a good while whilst dating the flash graphics consoles, it has just become a gameplay change and difference, like Splatoon 3, MK8 racing on line and now Sparks of Hope.
And Nintendo games some off them have that so precise control and touch of N magic.

Who knows where I will end up next 😂👾👾

@RetroMan71 Exactly. $70 price tag = I am going to wait for a sale. Every. Single. Time.

No point in rushing out to buy these games anyways when they essentially release as betas.

@Dezzy70 It wont suprise you to know I had a neo geo too. I used to work for IBM then, so I could afford the games 😛
The things that really makes me tick are fully polished amazing pieces of work that could stand toe to toe with any other creative media, like we dont see often enough. Why its normally Sony that makes them is anyones guess as the others should have the capacity and desire too.
Obviously, gow is the kind of game I live for, big production values and properly polished. But fun is wherever you find it and I certainly dont begrudge you yours!

As for xbox, its such good value I doubt a reasonable rise will hurt too much, especially with all the promised goodies arriving 2023 😁

@Titntin

I can never say that we ever won't do something, but... I can definitely say today we have no plans to raise the price of our consoles. We think in a time where our customers are more economically challenged than ever, we don't think that would be the right move

I find it rather strange that you think what Phil Spencer said (above) prior to today's article is somehow 'even worse' (to quote you) than Sony’s position on price increases.
My socialist tendencies are also tell me that rising prices for your customers in tough times is nothing to cheer about, then again we all have our own take on things I guess.

But hey, like you said- there is a lot of double standards in gaming and the mighty slippery slope doesn't help either 😉.

@Sol4ris I think being upfront and simply raising your prices when costs increase IS better than saying you wont raise prices and then doing so BUT, its all speculation and inference at the moment as theres no increase, so its fair to say its a moot point.
.. and if there is an implication that I welcome tough times or price rises, then its very much unintended.
Since I left games dev, Ive worked full time with the homeless and desperate.. nearly 15 years now. I very much care for people.

But yeah, I certainly agree perspectives and standards are always shifting.

@Titntin
Those production values used to get me everytime but this year my brain has changed. But still appreciate the pure effort put in and amazing quality.
As for Game Pass, it’s worth nothing to me without new big AAA games. As for next year let’s see the games first and their quality. We supposed to get Redfall, Forza and Starfield all by end of June 2023. That is not happening in my mind, they will be spaced out over the whole of 2023 with only Redfall making the promised by end of June 2023.
They have given no release dates and the first half of the year is looking jam packed with big third party AAA as well.
Microsoft made a daft promise that they knew they would not keep at their showcase.

@Bleachedsmiles well they aren't going to change prices of Activision games like cod back down to 60 I'd put money on it lol

I have an alternate take. I think game prices will be what goes up. It's now the industry standard thanks to Sony and....... Activision. It's going to be difficult to drop Activision's pricing, and raising prices boosts game pass value for now. I don't see hardware prices rising. You don't raise the price on the razer you raise the blades. And raising GPU price is self defeating to raise subs.

It has seemed fairly obvious to me that Microsoft will jack up prices on GP once they're done aggressively gaining market share in the home console space (as well as gaining ground in the PC marketplace).

I don't see hardware prices increasing any time in the near future. I don't think the Series S would even exist if they cared that much about profiting off the hardware.

@electrolite77
Switch the second half of this year 2022 really has been my go to console and will be for the rest of this year. Next year of course May BOTW 2.
Hopefully and finally something big AAA from xbox as well in 2023. If they don’t produce I can see xbox world slowing down a lot with the general public console sales wise, even more so if they have a price increase.
With BOTW 2 in May and Spider man 2 PS5 the general public will be edging towards those games and consoles.

@electrolite77 Yeah your completely correct. Thexarticke reporting that statement here on pure stated:
"Update: It looks like we've got our answer! Microsoft has issued a statement today to various outlets suggesting that the price of the Xbox Series X and Xbox Series S will remain the same - at least for the forseeable future."
The implication was a promise that no rises in the foreseeable future, but thats not really what MS said, it was just inferred by those interpretting the statement! I was remembering the inference and not the actual words of the statement, so thank you for making me look and reevaluate!

Very likely that GamePass will go up in price after the news confirmed that there is now a slowing of the uptake in the service on Console. I would imagine the Series X will also go up in price, but I would not expect games to change.