Xbox Game Pass Price Hike Is Inevitable in the Future, According to Phil Spencer

Published 09/24/2023, 7:45 AM EDT

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The Xbox Game Pass is one of the most popular gaming subscriptions in the world right now. The service offers access to a long list of games and titles from various developers for a nominal monthly fee. Microsft CEO Phil Spencer recently revealed that the Game Pass is a crucial part of the company’s revenue.

While the Game Pass currently boasts a strong number in terms of users, Phil Spencer also mentioned that the numbers have to get higher by 2027 in order for Micorosft to remain in the gaming industry. With so much importance being imposed on the Game Pass, it’s also understandable if Microsoft attempts to generate more profits from its cloud gaming service. Recently, Spencer has hinted at something that’s exactly that.

Recent shifts in pricing and Spencer’s insight

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About three months ago, Xbox Game Pass experienced a modification in its pricing structure, prompting a mix of responses from the gaming community. While some gamers acknowledged the increase as a necessary response to economic conditions, others voiced concerns about the potential impacts on their gaming budgets.

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During an interview held at the Tokyo Game Show, Phil Spencer, the leader of Xbox, delved into the subject of Xbox Game Pass pricing in the future. When asked about the prospect of another price hike, Spencer openly stated that it is “inevitable.” This revelation has spurred discussions and sparked a closer examination of the factors contributing to the decision.

It is important to recognize that the recent price alteration marked one of the initial significant adjustments to Xbox Game Pass pricing in several years. This implies that any future price hikes, though deemed “inevitable” by Spencer, may still be on the horizon.

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Striking the balance between value and costs

Spencer acknowledging an impending price adjustment highlights the delicate balance between delivering value and covering escalating operational expenses. Xbox Game Pass revolutionized the gaming sphere by granting subscribers access to an extensive game catalog. This has benefited both Xbox console and PC users. While this model has attracted millions of subscribers worldwide, it has also brought with it heightened financial concerns.

Developing, licensing, and maintaining a diverse array of games, along with providing top-notch services, makes financial commitments a necessity. As the gaming industry evolves, the financial demands placed on platforms like the Xbox Game Pass evolve accordingly. Spencer’s statement reflects the platform’s unwavering commitment to upholding the quality of its content, even as operational costs rise.

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What’s your take on the “inevitable” price hike? Share your thoughts with us below.

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Written by:

Diptarko Paul

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Diptarko loves to watch and follow football. He keeps a close watch on EPL with some not-so-frequent keeping track of the other major European football leagues. He supports Brazil as a national team.
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Edited by:

Ananya Giri