Analyst predicts that Game Pass subscribers should anticipate additional increases in prices down the line

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Price Surge Predicted for Game Pass Subscribers by Analyst

A significant increase in pricing for Game Pass has dominated the gaming news cycle this week. Microsoft has announced several changes, such as discontinuing the Game Pass for console for new users, raising Core’s annual price from $59.99 to $74.99, increasing PC Game Pass’s monthly fee from $9.99 to $11.99, and elevating the Ultimate tier to $19.99 from $16.99. A new ‘Standard’ tier has also been introduced at $14.99, offering online multiplayer access and around 25 select games from the library.

While Microsoft had previously hinted at no price hikes post the Activision Blizzard merger, there has been a change of plans. Microsoft Gaming CEO Phil Spencer acknowledged the inevitable rise in prices sometime in the future. The addition of Call of Duty is speculated to be a driving force behind the price increments. But is this a strategic move by Microsoft, and can subscribers anticipate further alterations down the road?

MIDiA Research games analyst Rhys Elliott shared insights with Wccftech on Microsoft’s pricing strategy:

  • Xbox aims to increase average revenue per paying user (ARPPU) and attract new subscribers with higher pricing, especially with the anticipation of Call of Duty boosting the subscriber count.
  • Predictions indicate further price increases in the future, with growth potential starting to level off even in the PC market.
  • The introduction of the ‘Standard’ tier signifies a shift from core to Ultimate for Xbox, aiming to maximize revenue by retraining subscribers to purchase premium games separately.

Moreover, with Microsoft gearing up for a significant off-platform mobile and cloud gaming campaign, connecting with a broader audience through the Xbox mobile store, the company is strategically positioning itself for future growth opportunities.

Exciting news awaits subscribers as reports suggest the addition of more games from Activision Blizzard to Game Pass, including titles like Crash Bandicoot N. Sane Trilogy, Spyro Reignited Trilogy, and Tony Hawk’s Pro Skater 1+2. With these upcoming additions, subscribers must weigh the increased price against the value of the new content. Share your thoughts in the comments section and participate in the poll to voice your opinion on the perceived value of the price increase.

Are the new games from Activision Blizzard worth the Game Pass price adjustment?

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