Just when gamers thought they were safe from the ever-looming specter of price hikes, Phil Spencer, the CEO of Microsoft Gaming, dropped another unwelcome bombshell. Speaking at this year’s Tokyo Game Show, Spencer mentioned that a price increase for the Xbox Game Pass is, in his words, “inevitable.”
Before you start sharpening your pitchforks, let’s try to make sense of what this might mean for Xbox subscribers. According to Spencer, the subscription service has been performing exceptionally well, especially after the launch of the much-anticipated Starfield. With Forza Motorsport also on the horizon, it seems Microsoft is on a roll – yet Spencer believes that a price hike is incoming.
He emphasized that while the primary goal is to offer more value, the current economic pressures mean that prices will rise. This isn’t the first time we’ve heard this tune. Just a few months ago, Game Pass underwent a minor price adjustment, with the base tier subscription fee climbing from $9.99 to $10.99 and the Game Pass Ultimate tier rising from $14.99 to $16.99.
Now, let’s juxtapose this with Sony’s recent move. PlayStation Plus, Game Pass’ direct competitor, recently underwent a significant price surge. Some regions, like Turkey, witnessed a staggering 600% increase.
To add salt to the wound, the free titles for PlayStation Plus Essential this month were, to put it mildly, underwhelming. This has left many subscribers fuming and questioning the value they’re getting for their money.
Going back to Microsoft, Spencer’s comments come amidst a backdrop of exciting developments. The American executive has also teased collaborations with Japanese studios, hinting at the development of new games for Xbox, some of which remain shrouded in mystery.
Japanese game creators are also part of Microsoft Game Studios, and although there are some titles that cannot be announced yet, we are working with Japanese manufacturers to develop new games. The development environment is growing, including first-party and third-party, so I think we can expect more Japanese titles to appear in the future.
Fortunately for today’s gaming landscape, brand loyalty is becoming a thing of the past. Many gamers proudly own multiple gaming systems, subscribing to both Game Pass and PlayStation Plus – while this fosters a healthier industry, it also has its drawbacks.
Add to the mix other services like Nintendo Switch Online, EA Play, and Ubisoft, and you’ve got a subscription cocktail that’s becoming increasingly expensive to maintain. With potential price hikes on the horizon, gamers might soon face a dilemma: drop a subscription or downgrade to a lower tier to keep all other services active.
Everything’s getting pricier, from bread to broadband. The challenge for companies like Microsoft and Sony is to ensure that the value they offer matches, if not exceeds, the price tag.
