Microsoft has revealed significant price hikes for its popular Game Pass subscription service, which is often likened to Netflix for games. This announcement comes after the tech giant acquired Activision Blizzard for a record $69bn (then £56bn) in 2023. The monthly charges for PC Game Pass will rise by £2 to £9.99, while the premium service, Game Pass Ultimate, will see an increase of £2 to £14.99 per month.
Additionally, Microsoft is set to replace its standard subscription tier on Xbox consoles starting in September. Consequently, Xbox gamers will need to subscribe to Game Pass Ultimate to access new game releases on their launch day.
This move follows Microsoft’s announcement in May that Call of Duty: Black Ops 6, one of the most anticipated new titles, would be immediately available to Game Pass subscribers. Analysts have noted that this represents a significant shift in the gaming industry, which has traditionally been dominated by physical game sales.
Game Pass and the Industry Shift
Much like Sony’s PlayStation Plus service, Game Pass allows console and PC players to access hundreds of video games for a monthly subscription fee. Both services are often compared to Netflix, offering a vast library of downloadable games.
Currently, there are approximately 34 million Game Pass subscribers worldwide, all of whom will now face higher costs. The new pricing structure for the UK is as follows:
- Game Pass Ultimate: Monthly fee will increase from £12.99 to £14.99
- PC Game Pass: Monthly fee will increase from £7.99 to £9.99
- Game Pass Core: Annual fee will increase from £49.99 to £55.99
These changes take effect immediately for new subscribers, while existing members will see the price changes in September. Xbox gamers with a basic subscription can keep it until it expires but will not have access to new releases or certain games exclusive to Ultimate subscribers.
Microsoft stated in its announcement that “some games” available on Game Pass Ultimate at launch “may be” added to the standard subscription at a later date.
Comparing to Sony’s PlayStation Plus
The price changes mean that the most expensive Game Pass subscription is now costlier than Sony’s PlayStation Plus Premium, which is priced at £13.49 per month in the UK. This price increase and the push to encourage console users to opt for a more expensive tier seem connected to Microsoft’s decision to release the latest Call of Duty title immediately on Game Pass.
Industry Reactions
The decision has raised questions about how Microsoft plans to manage the financial impact. GamesIndustry.biz head Christopher Dring told the BBC that he speculated whether Microsoft would “introduce higher tiers to Game Pass or other monetisation techniques” to balance the costs.
Call of Duty has sold over 425 million copies across its series, generating tens of billions of dollars. This latest move by Microsoft indicates a strategic effort to reshape the gaming industry’s subscription model.
