
Have you taken in the news about all of Microsoft's Xbox Game Pass changes yet? Don't worry, we're still a little confused by the service's new structure as well, but gaming analyst Daniel Ahmad has provided some insight as to part of the reason behind these changes to Xbox's subscription plans.
The well-known analyst has taken to Twitter to try and explain "one factor that influenced this move" from Team Xbox. In short, Ahmad says that slow growth outside of console means that Xbox seemingly wants to push its console user base to the higher tiers of Xbox Game Pass.
"One factor that influenced this move is that Game Pass is not seeing strong growth beyond the current Xbox console install base.
Therefore, the goal for current console gamers is to incentivise an upgrade to the higher priced Ultimate tier with day one games / cloud gaming etc.
PC & Mobile gamers haven’t purchased Game Pass at the rate Microsoft expected, and this cohort is where user growth needs to come from, which is why Game Pass PC tier will still have day one games."
Of course, the team is doing this by bumping the price of Game Pass Ultimate, while also including online access in the service's new middle tier; Xbox Game Pass Standard. Microsoft is seemingly hoping that Game Pass Standard and Game Pass Ultimate will become two attractive, higher-priced options for console subscribers.
Another curious note here is that Ahmad believes this slow growth outside of console is why PC Game Pass will still get day one releases at a much lower cost than any of the console options. For all of the new pricing details, check out our handy list down below.
What do you think to this? Is it a valid reason for the price bump? Talk all about the news down in the comments.
[source x.com]
Comments 40
Well glad I literally just the other day got 2 more years of ultimate for just over £50
I think there is a fundamental difference between PC and Console in that Console has required an online Subscription for decades now whilst PC does not.
MS can't charge PC gamers for accessing online content so 'Game Pass Core' has no utility on PC. On Console, if Standard was the same as PC, customers would still need to Sub to Game Pass Core as well as Standard to get the 'online access'.
Therefore, on Console, it seems they have opted to make Standard a 'singular' Subscription for Console gamers by including 'Online Access' instead of Day 1 so they can play every game without requiring another Subscription for online access too...
If Customers don't see 'value', they'll drop whatever tier sub they are on. Console 'Ultimate' subscribers may downgrade to Standard or even Core now, choose to buy whatever games in sales instead of 'upgrading' to a higher tier or increasing their monthly Sub costs.
It could have the opposite effect of pushing Console gamers to downgrade or quit Game Pass on Console altogether...
Judging by the comments and polls on the other articles, a(nother) price increase looks like a mistake.
I don't really see the logic in increasing the price if the service isn't seeing the growth. I doubt anyone is thinking "I wasn't subscribed, but now they've increased the price by a couple of £/$ a month, sign me up!". I can't see many people signing up for the new tier unless it's significantly cheaper than the current Ultimate price which I think is unlikely.
More likely MS are thinking that if they aren't increasing subscribers, the only way to increase revenue is to bump the price up and hope the extra revenue is more than the losses from users unsubscribing (or downgrading) because they can't or wont pay more.
Gaming news sites must love it when news like this happens. Eating good today! 😂
Somehow I dont think increasing prices will help either.
Like I have said before just over 50% of game pass subs are on Xbox consoles.
That means the rest is across all other billions of devices.
So the console up take is good and all other devices is poor.
3 years ago I put on here. Sell a console where you biggest up take is you stand a very good chance of selling a game pass.
As of today Microsoft have done absolutely nothing to sell consoles, advertising wise etc and are totally outsold everywhere.
Microsoft when it comes to Xbox consoles and Xbox really seem to want it to die. All the evidence is there. They are taking Xbox brand down.
I already see the responsible execs being super surprised when this doesn't help to increase revenue either.
Honestly, with this leadership it's really difficult to see a (good) future for XBox.
That's what happens with subscription services. They're guaranteed to fail because you can only reach so many customers and that's it. Prices are gonna get higher every year.
@LX_FENIX this!! 100%. I luckily stacked a while back and have until mid 2026… but I’m hoping by then I’ll have a very good gaming PC so when it comes to GP I’ll be able to use PC Version and scrap my Xbox all together and just keep my PS5 as my main console
@Savage_Joe 100%!!
Can Microsoft start already with releasing their first party games to the service…? So many games that have been promised for years, which kept a lot of people subscribed, but now that they finally seem to release some of them (lets wait and see) they’re increasing their prices? Again?
What a way to alienate yourself from your audience.
Ah yes, the logical response to stagnation - charging more for the same product! I'm sure that won't have the opposite desired effect.
90% of gp is child cartoon games.
European Commission documents showed that 70-80% were already on Ultimate.
I don't see the $19.99 value per month. And I could have sworn they recently increased from $14.99 to $16.99. So, no. I'm good. Perhaps in the Fall I'll buy a three month card.
A good way to promote growth in your subscription service is to keep adding more tiers, rename tiers and need a spreadsheet to show which tiers include which perks and services. Any smart businessperson will tell you that.
@LX_FENIX yup and people fail to realize there are running costs for data centers. Inflation applies to every person and entity within the realm. The deals that MS does behind scenes to get all of these games go up in cost too just like server maintenance does. Even so the cost increase is still so low and GP is a great deal. It ought to be 60$ a month. Even then that is still a steal. Considering the old days in which one had to buy new games at full price or wait months for the price to go down. GP is still cheaper. Doesn’t matter for me as I’ll still buy physical games directly for as long as someone offers them.
@OldGamer999 Xbox as a Brand is relatively strong - however Xbox hardware has suffered as a result of changes they implemented nearly a decade ago...
Around 2016 ish, MS announced that ALL their games would release Day/Date on PC starting with Forza Horizon 3 so that alone made the Console 'optional'. PC Gamers aren't buying an Xbox to play the same games they can on their PC but they are also 'Microsoft' customers too...
Now as Cloud 'improves' and can become an 'alternative' to buying a console, that too eliminates the need to buy a Series S/X - or upgrade from your XB1 so again, that undermines console sales as some won't see the need - either because 'Cloud' is sufficient or they prefer to play on PC. If anything, it just means that PC gamers won't waste money on an Xbox that doesn't have any games they can't play on PC but there is still incentive to buy Switch or Playstation instead.
Its still 'Xbox' as Xbox is Microsoft's gaming division and, like Sega, don't necessarily need 'Hardware' sales to grow Xbox as a Brand. 'Growth' is much more likely to be measured in Revenue than how many Xbox consoles there are.
Whilst I do agree that the Console has a 'place' and I'd be disappointed if MS pulled out of the Console market, I also don't know how sustainable that market can be 'long' term. Building at a 'loss' to get people and then make them pay for 'online' gaming to offset those and the monopoly the Platform holder has in terms of Digital storefronts...
Xbox though isn't just the Series S/X these days and doesn't offer some gamers any reason to buy 'hardware' - either because hardware they own lets them play games at much lower cost (Cloud) or they have hardware already that can play games natively at (or better than) console performance. I'd not buy a Series S/X to play at 30fps when my PC can play the same games at 60fps (or better) so why would others?
"PC & Mobile gamers haven’t purchased Game Pass at the rate Microsoft expected"
The mobile part of this is what gets me. I'm sick of hearing people talking about these billions of mobile gamers in the context of console style gaming. The overwhelming majority of those gamers are just playing free to play games that don't even resemble console games and were NEVER going to subscribe to a service en mass to play the likes of Halo
People have probably said this but let me do Tom Hanks Big hand raise "I don't get it" here...
Surely increasing the price means you're just as likely to lose plenty of people already subscribing...so unless you're picking up A LOT of new subscribers to outweigh that (and how does "Hey guess what, we just put the prices up!" help that any?!) then surely you're either worse off than you were before or probably in not much of a different position after.
@StylesT
How did you get it THAT cheap?
I picked up 3 more months at just under £22 from CDKeys but am now only subbed up to December this year overall.
Based on comments here we will see another price hike once the people who are currently subbed let it lapse due to the price hike if this is the reason.
Ahmad isn't explaining anything if he's just speculating. How do I know his comments are speculative? You summarize them with the overused timid word "seemingly." All I gotta do these days to get the crux of a sentiment's tone these days is to search for such overused words and voila.... Here we are.
@Jark and all you need to do is research online and what this guy says is pretty much true.
All the info is out there that subs are stagnating (PS too not just Xbox). Xbox has consistently missed its growth targets, to the point where Phil and Satya (I think) missed bonuses around this.
So much like Disney/Netflix etc once saturation point is hit, you milk the existing customers (ms nerfing rewards/price increase) Netflix (password sharing/price rise).
Sony will follow suit with a price rise within 3 months - now one has done it the other can.
@ANJB78 Waited for my subscription to run out ...bought three 1 year game pass core codes (India) for £14.99 each from eneba ...renewed them using a VPN...then bought a a month of game pass ultimate for £7.99 and it converted the 3 years of core into 2 years of ultimate
At this point I would happily have gold back at a fair price just to play online with the lads because I don't want to be carry on paying for that one game I purchased out right like call of duty for example.
If I'm staying subscribed to lets say game pass ultimate monthly for twelve months straight in GBP, whilst playing & buying Call of Duty only, it would cost people just short of £250 or more in whatever currency for that one year.
So no thanks I'll stick to steam & avoid the rinsing via online embedded pay subscriptions because at that the end of the day life is life, business is business and they win at the end of the day either way no matter the option someone may choose.
The negative news don’t stop coming. I’m not surprised nor having any outlandish expectations like there won’t be another Xbox by this point, but Microsoft/Xbox is so impossible to predict right now.
You know how to stifle growth?
Price hikes. 😂
What did MS actually expect when they don’t even attempt to sell the consoles in more countries complete with full suite of services (gamepass, microsoft rewards, etc)?
@StylesT
That sounds ridiculously complicated!
@Spider-Kev Ha...not really
I did my best everyone. I bought an Xbox and subbed to Ultimate last month but I guess it was too little too late. Sorry to let everyone down.
You know what will help growth? Higher prices!
I think someone really needs to reassess the value of a Harvard MBA. Product seems faulty.
@MikeOrator Man I feel kind of guilty encouraging you into this mess. You should have seen it back in the glory days when Xbox was a golden city, before the Darkness fell.
@NEStalgia
no worries. I actually though it was 22 bucks when I was kicking it around. I love Forza Horizons and I am looking forward to playing the new games I would never buy outside of getting them included in a service. Flintlock and Kunitsu-Gami look good and I can't wait to see what else gets added in the fall.
@carlos82 Exactly. There is HUGE difference between a mobile game and a mobile 3 min time waster like say Bejeweled 7.
@carlos82 @GuyinPA75 That stupidity is what has infected the C suites of most of the gaming industry. The belief that "mobile gamers" are "gamers" and it's all one big happy market rather than recognizing that they are two distinct markets. If these guys were the executives in charge of a theater company they'd look at McDonald's commercials and decide the market reach potential is the same as Macbeth because both feature watching actors perform and the names are similar.
@MikeOrator Haha, glad you're not regretting it over this. It helps when you thought it was more to begin with!
Why not just raise it to $100 a month, think about how much growth they could generate?
@Jenkinss "we're happy with the value proposition we have to offer at our current pricing"
10/15/24 "Introducing Game Pass Mega: Includes all AAAAA games including Indiana Jones and Call of Duty for just 99.99/mo!"
@StylesT
That sounds complex but I admire it haha
@PsBoxSwitchOwner The heck are you even talking about? I have to do research? I don't act like I never do that. And that's not even relevant. And I don't care about anyone's track record - though I dog Ahmad's twitter musings to keep tabs - bc it's not relevant to the language we use to make argumentation. And I didn't make argumentation, Pure Xbox authors did, even if it was just mere regurgitation.
Peace out.
Leave A Comment
Hold on there, you need to login to post a comment...