Following a leaked memo from Xbox CEO Asha Sharma, Microsoft is officially lowering the price of Game Pass, its signature subscription service. Starting today, the top-tier Game Pass Ultimate subscription costs $22.99, down from $29.99. The PC-specific version of Game Pass now costs $13.99, a few dollars less than its previous price tag of $16.49. The catch is what is included in these tiers and when.
According to Microsoft, everything that is currently included in either subscription will remain available after the price change. However, future Call of Duty games — including this year’s unannounced Call of Duty entry — will no longer be day one releases on Game Pass. Instead, newer Call of Duty games will be available on Game Pass the following holiday season, or about a year after they first release. Existing Call of Duty titles already on the service will continue to be available for Game Pass subscribers.
The change comes after just two Call of Duty games were day-one releases through Game Pass: 2024’s Call of Duty: Black Ops 6 and last year’s Black Ops 7.
Earlier this month, a memo from Microsoft Gaming CEO Asha Sharma called Xbox Game Pass “too expensive.” Sharma said that the company needed to find a better balance when it came to value, and that the solution needed to be flexible. This price decrease appears to be the company’s answer to that dilemma.
“Our players cover a wide breadth of geographies, preferences, and tastes, so while there isn’t a single model that’s best for everyone, this change responds to a lot of feedback we’ve gotten so far,” Sharma said in a post on Xbox Wire. “We’ll continue to listen and learn.”
The price decrease is happening around six months after a controversial price increase to the service that prompted some longtime Xbox fans to cancel their subscriptions. Microsoft tried to justify these price changes by adding new perks, such as Fortnite Crew and Ubisoft Classics. Since Game Pass also underwent a price increase in 2024, however, some gamers felt that Microsoft was still pushing things too far.
The price drop also comes during a time when major publishers are all reconsidering how to address a volatile market where consumers are increasingly spending less. For Nintendo, a strategy pivot has come in the form of lower prices for digital versions of its first-party games. After Yoshi and the Mysterious Book, Splatoon Raiders will be next to receive a $10 discount on its digital version. Sony, on the other hand, has kept experimenting with dynamic pricing that offers customized discounts designed to entice players who might otherwise not spend. All three publishers have increased prices on their hardware in recent years, and with the ongoing AI-driven memory chip crisis, it’s likely that console prices will keep ballooning.
Undoubtedly, Xbox’s price decrease will win over some miffed fans — but if rumors are true, sticker shock might return once Microsoft reveals the price of Project Helix, its next gaming console. The price decrease may also be the start of a larger shift for Game Pass, with recent reporting suggesting that Microsoft has considered both ad-supported tiers and service bundles with Netflix.
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