Microsoft Defies Industry Trend, Lowers Xbox Subscription Prices
Microsoft (MSFT) announced on Tuesday that it will lower the prices of two Xbox Game Pass subscription plans, a move that goes against the overall trend in the industry. Microsoft stated that its Game Pass Ultimate (console + PC all-in-one version) subscription fee will be reduced from $29.99 per month to $22.99, and the PC version of Game Pass will be lowered from $16.49 to $13.99. The prices of the standard and premium versions of Game Pass remain unchanged.
However, the announcement comes with an additional condition: Microsoft's popular "Call of Duty" series will no longer be available on the subscription service on day one of release, but will be added to Game Pass approximately one year after launch.
Previously released "Call of Duty" titles are not affected by this adjustment.
This reduction in the price of Game Pass Ultimate and PC Game Pass reverses the price increase policy from last October. At that time, Microsoft raised the prices of these two services, drawing criticism from players.
At the time, Microsoft increased the Ultimate subscription fee by 50% from $19.99 per month to $29.99, and the PC version of Game Pass rose from $11.99 to $16.49.
This price adjustment is one of the first major decisions made by Asha Sharma, the new CEO of Microsoft's gaming business. Sharma succeeded Phil Spencer, who was beloved by the gaming community and stepped down in February of this year. This move is likely to win her favor with players.
Sharma had already gained support from players with her first statement upon taking office as CEO, stating that she would not "pursue short-term gains, nor allow a flood of soulless, crudely produced AI content to permeate our ecosystem."
Microsoft's move comes as game console and game prices continue to rise due to tariffs imposed by the Trump administration, a global shortage of storage chips, and soaring game development costs.
Earlier this month, Sony (SONY) raised the price of its PlayStation 5 console, which has been on the market for over 5 years, by $100. Microsoft also increased the price of the Xbox Series X console, and Nintendo (NTDOY) raised the price of the original Switch console, although the price of the new Switch 2 remains unchanged.
Game prices themselves are also becoming more expensive. Nintendo employs a floating pricing strategy, with some games priced at $70 and titles like "Mario Kart World" costing as much as $80. The company also differentiates game pricing based on digital and physical versions.
For example, the pre-sale price of the upcoming "Yoshi and the Mysterious Book" is $60 for the digital version and $70 for the physical version.
Microsoft's price reduction also contrasts sharply with the practice of other subscription services raising prices in recent months.