Microsoft recently unveiled significant changes to Xbox Game Pass, notably increasing the price of Game Pass Ultimate by 50% to $30 per month. However, a prominent industry analyst believes this might not be the final evolution for the service.
According to Daniel Ahmad, an analyst at Niko Partners, Microsoft’s strategy is to maintain the loyalty of its existing console player base, even with the higher price point. Simultaneously, the company aims to aggressively expand Game Pass’s presence on competitor platforms like PlayStation 5 and the upcoming Switch 2, alongside its continued investment in the PC gaming market. Ahmad also hinted at the possibility of Microsoft exploring an ad-supported Game Pass tier as a way to ensure the long-term sustainability of the subscription service.
Ahmad highlighted Xbox’s immediate challenge: transitioning from a traditional, closed-console ecosystem to a more open, multi-device model. He observed that console sales have seen a considerable decline, PC Game Pass adoption has been slower than anticipated, and cloud gaming is still predominantly viewed as a supplementary way to play, rather than a primary entry point for gamers. Microsoft’s core belief, he explained, is that their dedicated console audience will stick with Game Pass despite the increased costs (or opt for the existing Premium tier), while they push for growth on other platforms through full-priced, day-one or delayed game releases.
Could an Ad-Supported Game Pass Be on the Horizon?
The crucial question, Ahmad posits, is whether Game Pass can truly thrive beyond its console origins and how Microsoft can effectively reach broader audiences. He suggests that achieving this will likely necessitate offerings with a lower barrier to entry, such as an Essential tier, and innovative experiments with cloud-only, ad-supported, or mobile-focused subscription models.
While Game Pass is expected to continuously evolve, it remains to be seen if proposals like an ad-supported tier will materialize. The exact implementation of such a model is currently unknown. It’s worth remembering that Square Enix attempted an ad-based game streaming service called Coreonline in 2012, which was discontinued after just 15 months due to low player engagement.
As for the immediate future, Game Pass Ultimate has increased from $20 to $30 monthly. The previous Core and Standard tiers have been rebranded as Essential and Premium, respectively, without any price adjustments. This price hike for Ultimate subscribers brings new benefits, including access to Fortnite Crew and Ubisoft+ Classics, along with a significantly expanded library of games.
These price adjustments for Game Pass Ultimate and PC Game Pass are happening just before the November launch of Call of Duty: Black Ops 7. Consequently, playing this year’s Call of Duty title via Game Pass will now be a more expensive endeavor.
The article also featured an image gallery titled “94 New Game Pass Games Released Today, Here’s The Full List,” showcasing several game screenshots.