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- Microsoft has changed the Xbox Game Pass subscription service, introducing a significant price increase to Xbox Game Pass Ultimate.
- This comes alongside an attempt to add extra value to the Game Pass, including a focus on cloud gaming for all tiers.
- Fans are not taking these changes lightly; there has been a significant call for mass cancellation in protest.
- These price rises come amid a backdrop of stagnant wages and rising income inequality, especially in the US.
- Xbox Game Pass is still a strong offering, but it’s become a much harder sell.
Xbox has announced some robust changes to Xbox Game Pass. While this included changing the names of the various tiers and their offerings, the most controversial adjustment came in the form of a pricing change. Microsoft has increased prices on its Ultimate tier by 50%. This spells the second such price increase since Xbox Game Pass launched in June 2019.
Xbox Game Pass has long been considered the best deal in gaming, offering access to an immense range of games, including a large number of first and third-party day-one releases. It was one of the best ways to experience the breadth of the gaming world. However, with these price hikes, Xbox Game Pass’ role as gaming’s great equalizer is being called into question.
What has changed for Xbox Game Pass?
The three tiers of Game Pass have been altered, starting with the renaming of Core and Standard tiers to Essential and Premium. Most prominently, the Ultimate tier has received a price increase from $20 (£14.99) to $30 (£22.99). The Essential and Premium tiers have received no price changes, but the PC Game Pass has quietly gone up from $11.99 (£9.99) to $16.49 (£13.49).
Microsoft has committed the Ultimate tier to providing at least 75 day-one Game Pass games a year, the addition of Ubisoft+ Classics to the gaming roster, and the addition of Fortnite Crew (a collection of Fortnite Battle Passes). It has also changed its Rewards system, allowing you to better earn points by playing and buying games, which can then be exchanged for gift cards.
All tiers are gaining access to more games, and the Premium tier is receiving a guarantee for the inclusion of all new Xbox-published games within a year of launch. All three tiers are also receiving great cloud gaming support. Even the Essential tier will get access to cloud gaming. By contrast, the Ultimate Game Pass is getting priority cloud gaming, with quality up to 1440p.
A tight squeeze
In light of this news, consumers moved to cancel their membership so fast and in such numbers that the Xbox Game Pass subscription cancellation webpage allegedly suffered significant crashes.
This is no surprise, as with Game Pass Ultimate, they are paying $120 (£96) extra a year, and it’s a painful $360 (£276) a year total, which almost amounts to buying a fresh Xbox Series S every year. With the cost of the Xbox consoles set to rise in the US, Microsoft runs a serious risk of pricing consumers out of the market.
These price increases are also coming alongside cuts to the Game Pass offerings. As well as the PC Game Pass price increase not getting any mention in their official press release, Microsoft has also confirmed that it has removed the Xbox Game Pass discount on games and DLC purchases.
Instead, it has revamped the Rewards system to provide more points, but there are still many countries that don’t have access to the Rewards system at all. It’s not a good look.
This is all against the backdrop of studio closures and mass layoffs across the industry and underneath Microsoft’s own corporate umbrella. The closure of Tango Gameworks after the release of its critically acclaimed rhythm-based beat-em-up Hi-Fi Rush seems indicative of a trend toward cutthroat practices for the tech giant. These price rises for Xbox Game Pass are certainly doing little to rehabilitate Microsoft’s image.
The Xbox Game Pass dream might never have been real
At the 2025 Tokyo Game Show, Xbox president Sarah Bond stated that Xbox Game Pass took in $5 billion in revenue in the last fiscal year and that it’s a “profitable business”.
However, this corporate posturing is likely hiding that gaming’s best deal could have always been a fabrication. Microsoft has reportedly lost up to a potential $300 million in sales last year on Call of Duty alone due to its presence on Game Pass (via Bloomberg).
The hope is that the day one Game Pass release of Call of Duty Black Ops 7 will cause players to subscribe and stay subscribed, making more money overall than if they had simply bought the game. However, this destabilises the market, as there’s no need to buy a game specifically if it’s going to end up on Game Pass. Much like Netflix, it turns the bevy of games you have access to into a more homogenised content soup, rather than a library composed of distinct games with their own unique appeal.
Is Xbox Game Pass Ultimate worth it?
Despite these price hikes, Xbox Game Pass Ultimate is still the best deal in gaming if you play more than one game a month. In October alone, Game Pass is giving access to day one releases like Call of Duty Black Ops 7 and The Outer Worlds 2. With the additional access to cloud gaming, you can save money on a more powerful machine, and if you already pay for Fortnite Crew, you can consider the price as not having changed.
Due to stagnant incomes and rising income inequality, especially in the US, the consumer is in an awkward position. The wealth of the average US family has remained stagnant for two decades, and public purchasing power reflects this (via The Pew Research Center). For many consumers, their budget dictates that they must choose between Xbox Game Pass and a new game each month.
In this context, the Game Pass still wins out with little question, even at its increased price point. However, these rising prices and the accompanying squeeze on consumers will only become more pronounced as prevailing economic trends continue. Subscribers can only be squeezed so hard – a fact which Microsoft will have to confront sooner or later.
FAQs
You can buy a physical Xbox Game Pass card in-store for 12 months, which comes with a slight discount for higher values.
Far from it, Xbox is doubling down on Xbox Game Pass. Despite the recent price increases, they are trying to justify their value to consumers.
Xbox Game Pass has three tiers. Game Pass Ultimate is the highest tier, offering access to the most games and features.
No, Xbox Game Pass is a subscription model. If your subscription lapses, you will no longer have access to the games, even the ones you have downloaded.
References
- Xbox’s Game-Pass Hike Shows Cost of Lost ‘Call of Duty’ Sales (Bloomberg)
- Trends in U.S. income and wealth inequality (Pew Research Center)
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