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For years, Microsoft’s Xbox Game Pass has distinguished itself by offering subscribers access to new first-party titles on launch day in addition to a large legacy library of older games. That important benefit from day one is now set to disappear for all but the highest tier of Game Pass console subscribers, even as Microsoft wants more money for Game Pass across the board.
Let’s start with the price increases for existing Game Pass tiers, which are relatively straightforward:
- Game Pass Ultimate goes from $16.99 to $19.99 per month.
- Game Pass for PC goes from $9.99 to $11.99 per month.
- Game Pass Core (formerly known as Xbox Live Gold) is going from $59.99 to $74.99 for annual subscriptions (and remains at $9.99 for monthly subscriptions).
Things get a little more complicated for the $10.99/month “Xbox Game Pass for Console” tier. Microsoft has announced that it will no longer accept new subscriptions for this tier after today, although current subscribers will be able to keep it (for now) if they auto-renew their subscriptions.
In its place, Microsoft will release “in the coming months” a new “Xbox Game Pass Standard” tier for $14.99. This new option will combine the usual access to “hundreds of high-quality games on the console” with the “multiplayer online console” features that previously required a separate subscription to Xbox Game Pass Core (“Core” will still be offered separately and include access to more -small library “25+ game”).
A quick and dirty diagram from me to show the new Xbox Game Pass structure (subject to correction).
I hope this helps. pic.twitter.com/Qj6CX7i4kG
— Klobrille (@klobrille) July 10, 2024
But while the current Xbox Game Pass Console option promises access to Xbox Game Studios games “the same day they launch,” those “Day One Releases” are conspicuously absent as a perk for the replacement Xbox Game Pass Standard subscription.
“Some games available with Xbox Game Pass Ultimate on day one will not be immediately available with Xbox Game Pass Standard and may be added to the library at a future date,” Microsoft wrote in an FAQ explaining the changes.
Players who want guaranteed access to all of these releases from “Day One” will now need to subscribe to the $19.99/month Game Pass Ultimate. That’s an 81% increase from the $10.99/month console players currently pay for similar “Day One” access to the disappearing Game Pass Console tier.
To be fair, that extra subscription money comes with some added benefits. Upgrading from Game Pass Console/Standard to Game Pass Ultimate lets you use Microsoft’s cloud gaming service, access downloadable PC games and the EA Play library, and get additional “free benefits every month.” But launch-day access to Microsoft’s first-party system sales titles is what really sets the Ultimate tier apart now, and one that will likely make for an expensive upgrade for many Xbox Game Pass subscribers.
More trouble, more money
Although Xbox Game Pass launched in 2017, launch-day access to all new first-party Microsoft games wasn’t promised to subscribers until early 2018. Since then, loyal Game Pass subscribers have been able to play dozens of brand new titles from first party at launch, from major franchises like halo, Forzaand Speeds of War for indie lovers Hi-Fi Rush, A sea of thievesand Ori and the Will of the Wisps and much more.
Of course, having access to hundreds of older games was nice. But the promise of brand new big first-party titles was crucial to growing Xbox Game Pass to 34 million subscribers as of February. And Sony has been reluctant to match that “day one” advantage for its similar PlayStation Plus service, which includes only a few older PlayStation Studios titles.
In an interview with GamesIndustry.biz in 2022, PlayStation CEO Jim Ryan said that releasing new first-party games to their subscription service would break a “virtuous cycle” in which buying new full games (priced at $70) helps fund the game’s next round of development. “The level of investment we need to make in our studios would not be possible and we feel the effect on the quality of the games we make would not be something gamers want.”
And Microsoft may come to a similar conclusion. Including first-party titles with cheaper, console-focused Game Pass subscriptions probably seemed like a good idea when Microsoft was still trying to attract subscribers to the service. But Game Pass subscriber growth is starting to slow as the market for potential customers becomes saturated. Microsoft now needs to extract more value from those subscribers to justify Game Pass cannibalizing direct sales of its own first-party games.
Activision
And let’s not forget Activision, which Microsoft recently spent a whopping $69 billion to acquire after lengthy legal and regulatory battles. Recouping these costs while offering Game Pass subscribers launch day access to mainstream sellers like Call of Dutylikely forced Microsoft to maximize Game Pass’ revenue-generating capabilities.
“Let’s put it this way: If 7 million Xbox Game Pass subscribers planned to buy Call of Duty for $70, but now have no reason to (because it’s part of their subscription), that leaves almost half a billion dollars revenues on the table,” MIDia analyst Rhys Elliott told The Daily Upside, illustrating the significant numbers involved.
For players who enjoy a wide variety of games and would likely buy all or most of Microsoft’s first-party titles at launch anyway, Xbox Game Pass Ultimate is still likely a good deal at its increased price. But players who subscribed to the relatively inexpensive Game Pass console option years ago may want to reevaluate whether maintaining that launch-day access is now worth $240 a year.
