Phil Spencer Hints at Xbox Console, Game Pass Price Increase

Xbox boss Phil Spencer has hinted that Xbox console and even Game Pass memberships will be seeing price hikes, stating that they will have to increase "at some point."

[Orchard]

They will obviously increase the price of games (and probably gamepass) at some point in the generation, yes. But the main thing is they aren't right now, and the prices are staying as is for the holiday season - not screwing consumers during an economic downturn is a good thing.

I think $20/mo would be my upper limit for GPU.

[sparky77]

Exactly MS confirmed Game Pass is already profitable so they don't need to nickel and dime their users.

My guess when they get rid of Gold there will be a pricing change.

[Orchard]

Yep, and they confirmed GP is profitable today - it accounts for about 15% of Xbox revenue.

https://www.vgchartz.com/ar...

[sinspirit]

For how big the subscriber population is. It has already been stated that the service itself can't be making much, if anything, by itself, and that day 1 releases easily make it a loss. GamePass itself is only barely profitable at such a massive size. As soon as you throw day 1 releases into the mix, it obviously causes losses overall, but that doesn't make GamePass itself not profitable. We already knew that GamePass would be raising the price soon enough when games finally come.

Also, GamePass has been slow for a while. It's not spending much currently on itself compared to before so that's where it becomes easier to call it profitable while it has taken a break. Conveniently, they are talking about raising the price just before the year that GamePass should finally get some day 1 releases. Surprise surprise.

Also, I was curious about the wording I've been able to find. I keep finding it split up or punctuated in a way that could also have meant that he said services including GamePass was profitable, but not GamePass specifically. If anyone finds a video or uncut quote let me know. Tried to search but no good results just yet

[talocaca]

When exactly did they say it was profitable? They announced 3 billion in REVENUE. That is before all their expenses (that are likely much higher than that between servers, marketing, deals with developers, etc.)

They have never been particularly transparent about the finances of their gaming division.

[EvertonFC]

Hate to break it to you but GP is bleeding money. What MS confirmed was revenue from GP sales that didn't include any losses from aquired GP games paid to Devs/pubs, neither did include making a 150m game like "starfield" or ES6 150m which wont see any return in profits or very little cause gamers will play it with a £1 sub.
Analysts have already said GP will need somewhere between 50/100m to be profitable once you've paid all the Devs/pubs deals off.

[Orchard]

@sinspirit They make about 3bn dollars a year from GP, and have confirmed that it is profitable. See below for source.

@talocaca They confirmed it today in an interview with Wall Street Journal (WSJ), Link is in my comment above and I've copied it below too: https://www.vgchartz.com/ar...

"Game Pass as an overall part of our content and services revenue is probably 15 percent I don’t think it gets bigger than that,"
Spencer added, "I think it will stay in that 10-15 percent of our overall revenue, and it's profitable for us."

@EvertonFC So we should trust you over Phil Spencer & Microsoft? They have access to the financials and run the business - what're your credentials?

Can't be bleeding money if it's profitable and generating 3bn dollars revenue.

[Christopher]

***Yep, and they confirmed GP is profitable today - it accounts for about 15% of Xbox revenue.***

Those are two different meanings of profitable being used there and you're falling for it. Everything there was about revenue that involved numbers, but it being "profitable to us" doesn't mean making a profit, but that it is beneficial to them. If it was making a profit, they would say that, but they didn't, they said profitable to us.

[tay8701]

@orchard. that is revenue, not profit. after you factor in all the money they have to shell out to get 3rd party agreements, pay all of internal studios staff for making the games, marketing and factor in all the money they lost by putting things on day 1 game pass, they will be very fortunate to turn a small profit. plus if they do manage to aquire activision, it will probably take them close to decade to recoup that 70 billion dollars.

[neutralgamer1992]

Profitable man find the difference between profit and revenue. I have 3 years of membership signed up

Netflix launched a while ago and only became profitable in 2020-2021

Right now Ms are paying for games day one on GP but once they start to release their AAA Blockbusters on GP they will be cutting down their profits because AAA games cost 60-75 million on average

$20 a month is $240 trust me won't go over well. That's why companies raise prices by few dollars at a time. Remember when Ms tried to raise price on Gold

I rather take the Sony approach and take the early backlash but in the long run things are more straightforward. Many Xbox fans were bad mouthing Sony but if x box follows and raised the prices it won't be a good look

That's why business and Twitter PR has to be separated

[1Victor]

I guessing every Xbox user forgot about the last attempt to raise prices without games and bows the perfect time to do so with everyone distracted by the ABK acquisition.
Right now Microsoft have two paths
The acquisition goes through Microsoft win the price will be higher and make more “profit” towards filling up that 70+ billions hole.

The acquisition fails the price is higher more “profit” to move on and try to acquire more studios.
In the end Microsoft win our lost🤷🏿

[darkrider]

Profitable.... Something that does 2.9 billions of revenue isn't profitable. Not even close. Some still don't understand that revenue isn't profit...

[SierraGuy]

Hypocrite extraordinaire you are.

[Orchard]

Nothing hypocritical in my comment at all.

[SullysCigar]

Tbf, Orchard, he didn't actually say your comment was hypocritical.

He said you are.

[VenomUK]

Duplicate.

[Goozex]

Orchard is such a ms butt kisser

[Bathyj]

So you're implying anyone who has raised pricing is simply screwing customers, but when Microsoft eventually do it they obviously had to, even though I'm constantly reminded they have all the money in the world?

Plus I hope you realise the two different situations at the two companies. If PlayStation doesn't make money Sony would probably fold. If Xbox doesn't make money and it doesn't it will just be a blip on Microsoft quarterly earnings.

Plus you were probably up in arms knowing your history when Sony raise the prices of games by 16% but apparently you're happy to pay a 42% increase for getting gamepass

[Orchard]

As a consumer, yes, increasing prices is screwing us. It was screwing us when Sony did it with games and the console, and it will be screwing us if/when Microsoft does it for their consoles and games too. Even worse is doing it during the current economic situation though.

Sony wouldn't go bankrupt if PS financials dropped, they didn't go bankrupt during the PS3 era either. Lets not pretend Sony are a small startup - they are a huge corporation that makes good money off of cameras, displays, sensors, movies, music, etc.

I do see GP as good value yes, for $10/mo or $15/mo (depending on your platform of choice) you can get access to all 1st party games, including Zenimax and soon Activision, as well as EA Play and XBL gold.

[Hofstaderman]

@Orchard what do you mean Sony didn’t go bankrupt in the PS3 era? As I recall the PS3 went on to outsell the XBOX 360 and took second place during that generation after the Wii. Even at their worst and Microsoft at their best Sony has kicked their direct competitor’s backside.

[Orchard]

@Hofstader I meant exactly what I said - they did not go bankrupt during the PS3, because they are a big corporation with their finger in many pots. To make out that Sony is some small startup that only has revenue from PS is laughable.

[shinoff2183]

Orchard. What your doing now is moving the goalposts. Now its alright to do it but dont do it during a bad economy lol. You guys lol

[rlow1]

Sony brought in over in almost 7 billion net as of June 30th 2022 but their game division was down from 2021. The point is they can afford not to raise prices if they had wanted to. But they know people will pay for it.

As for Sony going the way of the dodo is very narrow sighted. Yes, they would take a hit if they hadn’t raised prices, but they make money on everything from movies, music to sensors, television, cameras and the like. My other point is they are a very well to do company with assets in excess of 250 billion dollars.
So this Narrative that Sony is somehow in danger of failing because they didn’t raise prices is ridiculous. They did it because they can and instead of cutting into profits they banked on their strong position in gaming to raise prices.
Nothing wrong with that at all, because that’s business. But don’t think because MS is a two trillion dollar business that they can throw money around. You don’t get that big by wasting money. Plus just like Sony they have many projects and products outside of gaming.

Both these companies are big enough to handle anything that comes their way.

[EvertonFC]

You forgot the amount of money/electricity Xbox uses in standby mode

[CaptainHenry916]

"You forgot the amount of money/electricity Xbox uses in standby mode"

It doesn't have WiFi 6 either 🤔

[SurgicalMenace]

Raising prices is not screwing the customer as any financially literate person knows what's affordable for them or not. What we have with this mentality is the notion that you're supposed to be entitled to anything available no matter what. Games are a luxury that don't have to be afforded and with so many alternative options to play there's no need to go on a witch hunt for any company prioritizing their well-being. Prices need to be raised as they have been throughout history no matter who wants to accept it or not.

[tay8701]

lmao all the people who bagged on sony are going to look like fools. even a 2 trillion dollar company is going to have to raise their prices. you will see an increase in console prices, game prices and subsciption prices, the hat trick. im sure there will be crickets from many xbots when this happens, conveniently forgetting how they predicted the end of sony for increasing its price on the ps5.

[EvertonFC]

I think it has something to do with Xbox gamers love sucking Phil Spencer's di*k pmsl.
What's worse like you said "2 trillion dollar company" but with hardly no AAA games for 2 years of this generation yet price increases.
At least we've had ratchet, Spiderman MM, sackboy, GoW, GT7, oddworld soulstorm, destruction all stars(meh) returnal, stray,demon souls remake, godfall, astrobot, tlou remake,HFW and kena with our price hikes.

[Relientk77]

Funny how you criticized Sony for increasing PS5 prices 2 months ago, but now that Phil Spencer is talking about it, you are totally ok with Xbox doing it. Lol

[Orchard]

Where did I say that? Please show me.

[jznrpg]

They could come and burn his house down and he would say thanks ! I love it

[Mr_Writer85]

@orchad

Here

"But the main thing is they aren't right now, and the prices are staying as is for the holiday season - not screwing consumers during an economic downturn is a good thing."

You at no point say increasing the price is bad, and even try making up a false narrative.

That is defending a potential price hike.

[Chevalier]

Ouch Orchard backpeddling like mad with all these built in excuses and the goalpost moving as well. Should be a politician with the amount of flip flopping going on. Really sad to see someone fight so hard that these price increases are gouging and when the shoes on the other foot its just a natural consequence of what's going on in the world. Not believable at all! The word hypocrisy comes to mind. Shown all the proof in their own statements and can't even keep their own 'facts' straight. Simping for a trillion dollar company that could eat the cost easily, but, preparing everyone for price hikes all to gouge. If that price of Gold had gone through and doubled I bet you'd be here explaining how it was awesome for fans to just pay more to get ultimate instead of how it's bad for consumers. Where's your consumer rant now Orchard?!

[RauLeCreuset]

"They will obviously increase the price..."

Obviously? Obviously?! Oh, okay. Now that Xbox may do it, it's "obviously." A foregone conclusion. The logical outcome. No need to hyperventilate about how anti-consumer it is and using it to push the anti-consumer narrative as hard as you can. Nope. It's Xbox, so it's "obviously" instead.

"But the main thing is they aren't right now, and the prices are staying as is for the holiday season - not screwing consumers during an economic downturn is a good thing."

Is that the main thing or the narrative you need us to focus on instead? Because dropping hints of a coming price increase that signal to worried consumers to grab one at the current price during the holidays is so pro-consumer and not at all about using a potential price increase to scare up some extra holiday sales. You better hope the economy is in good shape at the time if they do a price increase.

[EvertonFC]

Well this global economy ain't sorting itself out anytime soon with Ukraine and Russia added to the mix, So this poor economy is here to stay for a good 2 years.
I think people are expecting everything to return to normal after winter but that ain't happening.

[CaptainHenry916]

Like I said it would. I say $25-$30 dollars for gamepass mark my words. $20 for PC probably

[SullysCigar]

Well, you heard it here first, folks!

The economic downturn will be over after the holiday season! Also, Xbox will do a good thing by kindly coinciding their price increases so as not to screw consumers - so says Orchard and his crystal ball.

Thanks Phil !

[EvertonFC]

Lol, "orchard" thinks everything is going to be all rosy after winter pmsl, were in this economy downturn, energy crisis, cost of living crisis add Russia and Ukraine to the mix for at least another 2 years.
It'll be even worse if Putin decides to drop a few tactical nukes.

[potedude]

They've gotta pay for their billion dollar acquisitions somehow.

[EvertonFC]

So you shit on playstation for doing it and forcing gamers to pay £70 yet when MS will do it;

"obviously increase the price of games (and probably gamepass) at some point in the generation, yes. But the main thing is they aren't right now, and the prices are staying as is for the holiday season - not screwing consumers during an economic downturn is a good thing"

You do realise this cost of living crisis and economy downturn, energy crisis is here to stay for about another 2 years don't you ? So I'm 110% sure the increase will happen during the economy downturn pmsl.

[Outside_ofthe_Box]

The hypocrisy is wild. Finally showing your true colors out in the open.

Didn't have that on my bingo card today.

[MrNinosan]

He does a couple of times everyday. Nothing new.

[Lightning77]

I already said that gamepass will increase in the future. There's no way they'll put there big AAA stuff on the service without some sort of price increase.

That's guaranteed to happen.

[darkrider]

Of course. With even more studios making ttriple A games that cost 200, 300, more marketing cost that sometimes cost 50 80 millions with worldwide campaign....

By buying Activision and getting even more triple A games.... Microsoft will need to have a big increases on price of gp and have 200 millions subcribers....

[badz149]

FOR THE PLAYERS!

[Mr_Writer85]

@orchard

"Even worse is doing it during the current economic situation though."

Why? Why is when they do it a problem? I mean correct me if I am wrong, but a PS5 and games etc are a luxury item which you would only purchase if you have the money no?

So unless you deem owning a playstation and games on the same level as food, clothes and energy I don't get how a price increase either now or further down the line is any different?

[Chevalier]

Nah apparently Orchard thinks luxury products are the same as necessities. Just a huge hypocrite. Just look at all the backpeddling everyone has been doing. Like oh with all these AAA games coming to the service it was bound to happen.... uh no the trillion company would be smart to actually eat the cost to increase subscriber numbers to balance it out. They're choosing not to. Remember when everyone said no way they increase the price..... really?! When everyone reminded them this is the same company that boldly tried to double the price of Gold?! But still people were adamant. Well here they are literally conditioning subscribers to be ready for price increases. Watch them do it right after announcing some 'must have' games at E3 next year just in time for their next fall releases to come. You know why they're going to do it? Because they couldn't when they didn't have any regular AAA content. As they get more regular AAA games expect regular price increases.

[Mr_Writer85]

@Chevalier

Tbf Microsoft are a Trillion company, but the Xbox division is not.

And trillion $ companies don't become so by eating costs.

Phil has to probably run Xbox as if it's mostly it's own thing. I can't imagine other executives would be pleased if Spencer kept getting handouts and bailouts from their divisions profits.

Xbox is making money, but obviously the bank of MS is telling them they have to make more.

[Docmortem]

deleted

[MrVux000]

Gamepass will eventually see a price hike.

[Nacho_Z]

Whoah Orchard your Microsoft is out and we can all see it.

This was a fun read. It always seemed inevitable to me that prices would go up seeing as they've already tried it with Gold and they're spending vast sums.

[darkrider]

Microsoft doesn't care about players... It always was a shady company. Of course here the damage control brigade its tryng to spin this.... Trillion dollar company needs more money....

[TheEroica]

So many down votes for such a rational comment... Nonetheless, your sentiment is absolutely correct. This is a conversation about value assessment... Each gamer should ask themselves, "am I getting value from my subscription?" if so then it's a fantastic deal! If the price outweighs the value then the gamer gets to make the choice to end the subscription. Everyone already knew GP prices would increase. Now you simply assess the value and move on.

Also, I'd bet the farm the majority of those down votes are from the same people who defend Sony charging 70 bucks for a game, so don't take it to heart. Gamers are weird.

[Outside_ofthe_Box]

No one is taking issue with the "rationality" of it. It's the hypocrisy. Just as you did it yourself here.

You bring up people "defending" $70 games as if you have an issue with it even though there are rational reasons and the same "value assessment" applies to it as well. But when it comes to MS eventually increasing the price on any of their products, it's no longer "anti-consumer" or bad/evil, just something that is inevitable or natural and if you don't like it just "assess the value and move on." Also keep in mind that Phil literally a month back said there were no plans to increase anything just to turnaround and day this. . . .

Yeah people like you and orchard are weird indeed. Bash Sony, but turnaround and be rational for MS for the same exact thing.

[Mr_Writer85]

@TheErocia

£70 games isn't really an issue as A) It's a launch price and B) Unlike a certain other Japanese gaming company Sony don't keep the price that high.

Example. Two first party games launched November 2020.

Demon's Soul remake PS5
Launch Price £69.99
You can get on Amazon now for £40
Cex second hand £22
Has been on sale on PSN 11 with £39.99 being the lowest price

Hyrule Warriors Age of Calamity
Launch Price £49.99
Amazon current price £48.99
Cex £35
Has been on sale twice on the eshop £32.99 being its lowest price.

How much do you want to bet that by November 2023 Demon's Souls will be £20 maybe even less, and Hyrule will still be £30+

All the £70 increase means is you just wait longer for a game you want.

I am very picky with my games, and the £70 launch price just makes me even picker, Infact other than GOW Ragnarok I can't name a single game that I will justify buying at launch.

[RauLeCreuset]

Compare and contrast Orchard making sure to post the first comment to tell us there was obviously going to be an increase and to spin a narrative about how it's not screwing consumers during an economic downturn to Orchard's response to Sony's price hike:

"Outrageous - no one else is increasing the price of their console and Sony could obviously afford to not do this.

"Also no price increase in the US, of course, it’s the only western region where they’re getting pressure from Xbox.

"This generation is For The Payers."

https://n4g.com/comments/re...

"Also they chose Gamescom week to announce this… PlayStation under Jim Ryan is so out of touch with gamers."

https://n4g.com/comments/re...

The first word in response to Sony was "outrageous." First word. The game is obvious and should be addressed for what it is. Why keep refusing to see the pattern in order to pretend these comments are being made in good faith?

[roadkillers]

Right now I’m paying $181 for 3 years of GPU. Going to get that $181 for 3 years again when I run out in March. Currently paying $5.02 monthly for Gamepass Ultimate. I will pay at most $10 a month for Gamepass.

The reasoning is that I have only spent $60 this year for Elden Ring… 80hrs and still haven’t beaten. Once I do, I’ll grab another $60 or on sale game that will last me the year. I understand the amount of games, but I honestly don’t have the time for more than $10 a month.

[italiangamer]

Now magically all the people that went against Sony will be okay with ms doing it. Bunch of sheeple.

[crazyCoconuts]

Or respond to your gross oversimplification of human behavior with one word responses like "Facts"

[VenomUK]

For the record here's the story on N4G about the PS5 price rise. It's interesting to compare and contrast people's responses between that and the possible Xbox price rise.

https://n4g.com/news/250103...

An N4G user called Orchard wrote: "Outrageous - no one else is increasing the price of their console and Sony could obviously afford to not do this. Also no price increase in the US, of course, it’s the only western region where they’re getting pressure from Xbox.

This generation is For The Payers."

[crazyCoconuts]

That's one person. I don't think we should generalize across a population of people without data, that's all

[Jin_Sakai]

Let’s result to name calling. And who said it was ok?

[Tacoboto]

Raising the base MSRP of two year old hardware is never ok for the consumer.

But I'm sure as an entity that likes money, Sony increasing the price and seeing unit sales continue to increase is irresistible to follow up on for even the least experienced accountant at Microsoft.

[RauLeCreuset]

Wasn't it Microsoft that claimed Sony raised the price because of their unshakeable place atop the market? Can't argue Microsoft is just following the leader while they're arguing the leader is in a unique position to do it because they don't fear competition.

[Tacoboto]

You guys have an incredible lack of depth in your thinking, it's astounding.

[CaptainHenry916]

Sony didn't increase the Price in the US though. Microsoft will be increasing the price worldwide including the US

[CS7]

@Tacoboto

I’m a Sony guy through and through and the delusion in the thinking here really baffles me.

[RauLeCreuset]

Tacoboto and CS7

Somehow I doubt I would receive the same leeway to respond to your insults in kind, so I'm just going to leave this here for you deep thinkers to digest and consider as it relates to the suggestion that Microsoft couldn't resist following Sony's lead.

Microsoft arguing to the CMA reviewing the Activision acquisition that Sony's price increase is reflective of its market power and ability to do so without fear of losing market share, while stating it confirmed no plans to increase the price of Xbox.

"Sony engages in conduct today which is reflective of its market power in console gaming, including increasing prices of its consoles without fear of losing market share."

"Sony announced an increase in the price of PlayStation consoles in the UK and other countries in August 2022 ('PS5 price to increase in select markets due to global economic environment, including high inflation rates', 25 August 2022, link available here). Microsoft confirmed that it does not have plans to increase prices of Xbox consoles (link available here)."

https://assets.publishing.s...

[RauLeCreuset]

Self-proclaimed "Sony guy through and through" CS7 when the PS5 price increase was announced for certain markets:

"LOL! The warnings were there all along! But no one would listen.

“'ThEy CaN cHaRgE wHat ThEy wAnT!1!!1'

"Look the results now."

https://n4g.com/comments/re...

Self-proclaimed "Sony guy through and through" CS7 had 10 comments attacking Sony out of the 11 comments that immediately preceded the one quoted above collapsed as inappropriate. What was that about delusion? Okay.

Be real, people. Just be real. Don't try to lend your agenda a false sense of legitimacy by proclaiming to be a Sony guy through and through. It's so easy to spot. It's been tried before.

Edit: What did self-proclaimed "Sony guy through and through" CS7 have to say about Xbox hinting at price increases?

Nothing. Crickets. Only that he's a "Sony guy through and through" and baffled by our delusional thinking.

Our delusional thinking. That's rich.

[Jericho1337]

Who is going to be ‘ok’ about this?? Doesn’t matter which side of the fence you sit on, as a consumer price hikes suck. Selfishly hoping it’s for consoles instead of games or gamepass, although a price hike of the latter is probably a long time coming.

[Outside_ofthe_Box]

"although a price hike of the latter is probably a long time coming."

Sounds familiar.

[gangsta_red]

Who said it was okay? And when did MS increase the prices?

[Chevalier]

They're conditioning everyone right now what the heck do you even read?! They don't want this shock and negative reaction like when they sprung doubling Gold so suddenly so they're already preparing everyone for the eventual price increase. Why else do you think he's even being quoted this in an interview? Forget leaving a trail of crumbs does he need to throw the crumbs directly at your face to see? Probably wouldn't work anyways if you got blinders on.

[gangsta_red]

@Chevalier

Answer the question, who said it was okay?

All of you are so quick to point out hypocrisy without acknowledging your own. Where are the excuses like a good number here did for Sony?

A GP price raise was inevitable, this has been discussed since it's inception. Consoles is another story and absolutely no one has said it was okay... besides the many on this site that made excuses for it happening for Playstation.

So I have to laugh at you and others jumping the gun at being upset at something that hasn't taken place at all.

[Outside_ofthe_Box]

Nobody is jumping the gun at anything. People are pointing out that the same people that cried anti-consumer and greedy at Sony when they increased their price are all of a sudden a lot more rational at Microsoft's statement. Literally people said that MS would follow suit so nobody is bashing MS for it, just pointing out that the diehards that attacked Sony are coming out with reasonable responses when they weren't doing that for Sony and called people that "defended" Sony as blind fanboys supporting an anti consumer company.

[gangsta_red]

@outside the box

"Nobody is jumping the gun at anything."

*reads comments * You're kidding right?

MS hasn't raised the prices on anything and the majority of these comments are already calling for the heads of others who commented on Sony when they actually did raise the price of their console. Do you not even see the difference? You asking for outrage on something that Phil may do somewhere after the holidays.

"People are pointing out that the same people that cried anti-consumer and greedy at Sony when they increased their price are all of a sudden a lot more rational at Microsoft's statement"

Who? I keep asking this question and I'm not getting any answers on who are these people that are leaving rational answers, because from this site alone there were a lot more rational comments left in the articles when Sony raised their prices. So it's funny to now read the comments of "oooh, now it's okay" when it was these so called "defenders" that set the narrative of it being fine in the first place.

Nobody should want the price of old hardware to be raised, whether it's Xbox or PS.

[Chevalier]

Who is okay? You being a hypocrite.

"A GP price raise was inevitable, this has been discussed since it's inception"

This is you being 'okay' with rising prices. So don't talk about hypocrisy. It's NOT inevitable nor has it ever been discussed since inception. A company worth almost $2 trillion was subsidizing garmepass all along and could easily keep doing it to increase their subscriber base. They're choosing NOT to.

Also speaking of excuses. Xbox raised their prices first in India before Playstation did.

"MS hasn't raised the prices on anything"

It inevitable though. This isn't some nobody being quoted it's Spencer. So regardless of your making excuses for them doesn't change that it will happen.

[isarai]

Like i said when sony did it, it sucks but not really much of a choice given the many factors affecting production and logistics of the hardware.

[blackblades]

Yeah, it also sucks that Sony got flacked for it and now everyone is ok with it when MS does it. Sony was the one that came out and told why they doing it, then ms said some shh about it then now they came out saying they doing the same.

[Lightning77]

If MS raises the price of the X in 2023. I'm definitely saying something. I'm pretty hard on MS. I'm complained when they raise the prices I've a said they need a release date for Redfall from the recent trailer. I don't play numbers I play games when they announced their financial earnings. If it's a a Gamepass increase. I already saw that coming from miles away. Once they start having a steady stream of exclusives hitting the service best believe the police will shoot up. 20 to maybe 25 a month.

There's no backlash now because MS hasn't raised anything yet.

[Chevalier]

@Lightning

Lol. Yeah your so hard on Xbox like you are on Playstation. What a hypocrite. Barely saying much is 'saying something '.

[shadowT]

Let see what price hike on Game Pass or Xbox Series X/S we will get.

[excaliburps]

Maybe 50 per consoles and for Game Pass, a $1-3? I doubt they'd hike it to $5 since that's way too big.

[LabRat]

It is 14.99 for Ultimate right now, I could easily see them raising it to 19.99. If they do that though, they better be putting up some great games, cause as it stands now some months are pretty bad in terms of content.

[EvertonFC]

You can only do the £1 sub once ? Unless you want 100 email addresses and no achievements

[Golfcoachh]

EvertonFC, didn't you know everyone subscribes for just $1 dollar over and over and over again? Thats all I see on this site is how everyone does $1 subs, not one of my friends that has gamepass has it for $1 dollar anymore.

[Destiny1080]

gamepass will go up to 2 dollars a month

[Orchard]

So it's $1 right now? 3bn dollars revenue at 1 dollar a month is an insane number of subscribers.

Doing quick napkin math, that's $12 a year per subscriber, so that's 250m subscribers they have on GP today.

[LabRat]

I'm sure he meant 20

[Crows90]

Pretty sure gamepass makes money from other sources as well. You can get gamepass for free thru the rewards program so ...it's really baffling that people are willing to pay for what's actually free.

[livedeht]

Damn why u shillin? Lol

[Orchard]

@LabRat Sadly he didn't. He regularly posts misinformation on here that GP is $1/mo.

[shinoff2183]

It is more then 1 dollar. Idk what bs numbers your spewing. Its 1 dollar for the 1st month. Do your parents pay for yours so you didnt know after the first month it goes up. Theres no way theres 250 million gamepass subscribers. Your crazy dog.

[EvertonFC]

You ain't right in the head fella, seriously I'm concerned for you and suggest you see a doctor.

[darkrider]

Stop dude, it's getting sad.

[Chevalier]

@Orchard

Didn't you just call someone out for 'misinformation '?! Wow. Take a look in the mirror and look at your own comments. Seriously why are you making excuses for a company that is worth a trillion dollars?! Didn't you just say Playstation could easily cover the cost of increases and call out Playstations boss? Wouldn't it stand to reason a company worth so much more than Playstation could also eat the cost? Weren't you literally saying that it was anti-consumer?! Now Xbox is conditioning everyone for price increases and your reaction is literally the opposite. No calling out Xbox, Microsoft or Spencer?!! Seriously you're a hypocrite.

[DrRobotnik]

The hypocrisy is strong in this comment section.

[Eonjay]

Real hardcore hypocrisy.

[Outside_ofthe_Box]

Who might you guys be referring to 👀???

I need names!!!

[Chevalier]

Some C, P, L and O!

[Hofstaderman]

Ah, the first increase. Watch this space.

[VersusDMC]

The first increase already happened in India before Sony did theirs.

But apparently that didn't matter as its a small market...but when the series X is the best selling console there we get articles here celebrating the Microsoft return to glory.

The flip flopping and hypocrisy will happen as usual.

[TheColbertinator]

Obviously the price of GP will increase. Surging licensing and publisher fees will go up in the years to come. The key is to snag a good deal to renew your GP.

[jznrpg]

It’s not surging . They are raising prices because that was the plan . 1$ Carrot and 20-25$ Stick and that’s just the beginning. It will keep going up . You will be paying for CoD and such if you like it or not .

[SeTTriP]

The key is to make high-quality games.nintendo and Sony seem to be doing fine with this course of action 🤷‍♂️

[TheColbertinator]

Nintendo yes.

Sony blows #andthatisthetruth

[Deathdeliverer]

I said it recently, these purchases are not free. They tried to do too much at once last year. They learned. They are going to incrementally, but repeatedly, increase the prices. They already don’t off a yearly bundle like virtually everyone else. They want you paying month to month. No discounts. Now whenever these increases come instead of saying, “well I still have 7 months left in my bundle” it’s, “ Dang that’s next week”.
Anyway, time to play psychic. Price hike will be in the beginning of Microsoft’s next fiscal year and IF the Activision deal goes through the next increase will be BEFORE the end of 2023. Yep, 2 in one year. If the deal does NOT go through or is delayed the next increase will be the beginning of the NEXT fiscal year.

[EvertonFC]

I also read somewhere games will go from £70 to £80 before this gen is finished

[LoveSpuds]

My guess for when the prises will jump is that the moment they are in a position to release a couple of 1st party exclusives they will also bump the price.

[ChasterMies]

If you want the products of a giant corporations with billions in profits to succeed, you want them to nickel and dime you.

[andy85]

After all the flak Sony got for raising the console price I'm surprised MS are even thinking about it. They're cheaper to make than they were 2 years ago it just isn't necessary. Especially from a $2 tril company. They made some good strides lately especially with Sony being lees consumer friendly of late. This would be a big step back.

[Harryvok]

Of course it will go up. The current pricing is just to get more people into the Xbox ecosystem seeing as they were so far behind (it's working). Guaranteed they aren't making the profit per subscriptions they eventually plan to, but it's something they can deal with being part of a trillion dollar company.

It's not coincidence they went with a subscription service like game pass after pushing it for other products like Microsoft Office. They make more money from us long term with subscription services.

[onisama]

I don't think console prices will ever go up actually its getting cheaper now Xbox series went down to 240$ but for gamepass? i know this would happen thats why i decided to load 12 month sub im sure it will be 15$ for ultimate instead of 10$ and i also expect that the option to share trial sub will be removed as many is using that trick to play for 1 $
Edit: i didn't see it coming so soon tho... I thought maybe 2years or so till they start securing a better position in the market

[Zhipp]

Yes it makes sense if he's talking about gamepass, but i don't see why console prices would eventually go up. Time will tell, though. Maybe they'll decide to screw over their customers like that

[Vengeance1138]

Ha! So much for "good guy" MS not hiking their prices up. A 2 Trillion dollar company and still have to up prices eh? Guess MS is more on par with Sony than everyone thought.

[gangsta_red]

They hiked the prices? When did MS do that?

A lot of these comments are so quick to point and scream "hypocrisy" even when it's premature.

No one is cheering price hikes but let's flip the coin, let's use the same excuses that where said for Sony when the price hikes might happen down the road for MS.

[Chevalier]

A company worth almost 2 trillion is literally giving you a heads up of an eventuality and you want to talk about how it's not happened yet. The point is it will. It's not a matter of if, but, when. Regardless of when that is happening. Barely a whimper from all those people with pitch forks and yelling 'anti-consumer'. In fact look at a couple comments here already trying to rationalize the price increase as bound to happen because of increased AAA content.

[gangsta_red]

@Chavelier

"It's not a matter of if, but, when.."

Well, is that time now? All I see are comments criticizing these non existent events and talking about the people not being upset at something that hasn't happened at all.

"...couple comments here already trying to rationalize the price increase.."

The hilarious part about this, especially concerning this site, is there were way more comments excusing Sony's price hike and now these same commenters wanting or demanding some sort of outrage of MS supposedly raising their prices somewhere down the line.

[EvertonFC]

Agreed, one day gamers will wake up and realise these companies are in the business to make huge profits.
I can guarantee everyone on here who moans about price hikes would do exactly the same if they ran a business.

[franwex]

So much for staying competitive…

So they may raise hardware price in some markets too.

I think they’re also going to bring out the new MSRP of games at $70 instead of the $60, and increase the prices on subscriptions.

[S2Killinit]

Oh boy

[Killer2020UK]

I got downvoted heavily for saying "wait for it" when people were kicking off about Sony's price rises and lauding Microsoft. Inflation, it's inevitable and given the cost increases for basic chip sets, it's always going to be passed onto the consumer. Just a matter of when.

[franwex]

Yep. But also a bit of greed. Similar to airlines or gasoline stations. If the competition raises prices-they may raise them too.

Reminds me of when Sony and Nintendo had free online playing and Microsoft was paid. Eventually they all became paid instead of Microsoft becoming free.

[Hauntedasylum8]

So now Xbox fans will get a taste of the increase but all of a sudden, “it’s perfectly understandable”. Sony caught flak left and right for doing it and because Microsoft didn’t immediately follow suit, you all viewed them as the good guys. I await your opinion of Phil and gang once the increase inevitably happens.

[CantThinkOfAUsername]

One for one, I guess. Xbox took heat when they stated their support for cross-gen while PlayStation was 'believing in generations.' Now, PlayStation took the heat of rising prices while Phil was 'believing in customers-first.'

[Chevalier]

Except Playstation did release next gen only games though. Xbox hasn't at all.

[gold_drake]

and this after they said they have no plans for an increase just a month ago lol.

thats why Phil needs to stop talking. period.

[Outside_ofthe_Box]

Lmao I forgot about that. Phil always just says what will get him the most brownie points at the time. That's Phib Spencer for you!

[ironmonkey]

Lol that karma

[Petebloodyonion]

I will exactly say the same thing that I said when Sony (and Meta) raised their price.
1) Console: Usually, technology becomes cheaper because of more advanced technology so please give us a good reason to raise the price of hardware and if it's mandatory then do like Meta and give a free game to mitigate the impact.

2) I have no problem with raising the price of the game when the cost associated with it goes up meaning a new game built exclusively for new consoles on a new engine and not a sequel made of some extra levels of the old game made on the same old engine with an extra 10$ to unlock the brute force of the console (resolution, frame rate, and loading) that we already paid a premium to do so.

3) Subscription
I can understand the price of service going up at one point in time (see Netflix, Disney, etc) but how about giving us the option to mitigate that like a cheaper yearly option like PS+

[CantThinkOfAUsername]

Regarding the first point:
TSMC, which makes chips for AMD, which makes the hardware of PS5 and Xbox Series S/X, has stopped its practice of cutting prices for chips on matured nodes and products in mass production. They also plan on increasing chip costs by 5-8% per wafer in 2023 due to the current economical challenges, rising prices for certain components and rare materials involved in chip production as well as their expansion goals.

[Petebloodyonion]

As I said if there's a reason to justify this then I'm sure that MS can mitigate this by giving a digital code for Forza5, Halo, or something like that.
On the other hand, if the cost of chips was really crucial to the price structure of the Series's console then why have we seen several 50$ rebates on the Series S console?

[blue88]

So Microsoft finally starting to show they’re true colors again I see 😂 lol.

[moomoo319]

Good article. I like when sites cover the financial news.

[Lexreborn2]

I’m not renewing my gamepass next year

[Sgt_Slaughter]

All this does is make the Switch and Steam Deck look much better by comparison, that's free sales for both companies.

[ChiefofLoliPolice]

Called it! I knew it was going to happen sooner or later. I said on here on N4G that Game Pass is currently unsustainable as it is now. I said mark my words they will be increasing the price of game pass. Saw it coming.

[babadivad]

I honestly wonder if the fanboys here can even see how duplicitous they are. These guys will literally tear down one company for doing something (pick a topic). When the company THEY like does the same thing, they'll come out and earnestly argue why it's actually a good thing.

It's the most ridiculous thing but happens so often here it's common place. Seriously, you fanboys need to go back and look at your comment history so some self reflection. You guys couldn't possibly be this obtuse.

[masterfox]

lol their gp games sucks!, and now increase? haha do it!

[Leathersoup]

Remember when consoles became cheaper after they were released?

[MIDGETonSTILTS17]

As the games FINALLY arrive, there is just no way that GP stays profitable without a price increase.

The idea is to get large groups of friends all subscribing together, discussing content together, then see how profitable they can make it with incremental price hikes.

It’s a form of testing their price elasticity, and they will need to try the moment they can argue that the value has gone up as well (ie the games arrive).

[Chevalier]

That's some spin there. Rationalizing the increase due to increased AAA content. Microsoft could just eat the cost and increase their subscribers to balance it out. They're just choosing not to. Just like Xbox it won't be profitable quite a while if ever if they have to account for purchases like $70 billion acquisitions. But a company worth almost $2 trillion needs these excuses to charge more?! Lol

[spoonard]

And the Xbot's go into immediate spin mode. lol In a year when this happens, Sony will pull their prices back down and absolutely annihilate Microsoft in sales. Again.

[Good-Smurf]

Sony raised it: Worst thing since the Plague they're scums of the earth and Jim is a crook.
Microsoft about to raise it: That's fine we get it we would happily pay more, thanks uncle Phil.

[XxINFERNUSxX]

So Microsoft which is a trillion dollar company needs more money? If anything they can afford to give discounts, easily. Greed is like a cancer but there will never be a cure, not in anyone's lifetime.

[Docmortem]

Do this while you still can. Worked for me a few months ago... need expired game pass though. I got 36 months for 140€ in june.
https://www.pcworld.com/art...

[Elda]

Like they say...talk is cheap. Love going back on their words. I don't mind a GP increase if it's worth it. If they increase the price & GP still gets mostly current lackluster low budget & Indie games along with old AAA multiplats like it is now I will no longer subscribe & I'll get rid of my XBSX. If the increase will have them getting better current AA & AAA multiplats I will support GP.

[garos82]

sucks that sony did it and sucks that microsoft will do it. meanwhile physical games dont even have a freaken manual anymore , they cut costs to nth degree and we get crapier products at higher prices.

[StarkR3ality]

Game pass I can understand, the amount of value you get is a steal.

But I slated Sony for this and Xbox will get it too, price increases on 2 year old hardware is unacceptable. You can blame the economic climate however we never saw price increases in 2008 when the situation was way worse than what it is now.

Yes things are more expensive, however productions and components get cheaper as they always have. Price hikes this far into a generation is scummy.

[TheTony316]

The hypocrisy here is hilarious.

[Tzuno]

Game-pass is a long therm investment that makes money with patience.

[darkrider]

The trillion dollar company needs to increase everything? But but but why? Gp is making so much money... The streaming service also, huge increase on everything. What a bunch of lies.... A company that is spending 70 billions on buying publishers now those this.... Of course for the usual suspects this now is ok, isn't? But Sony is evil... Terrible, how can they raise prices?

[anast]

This is funny.

[JayRyu]

Everyone should have known that the price was going to go up on GP after MS initially jumped the gun and raised the price and then lowered it over a year ago. No crystal ball needed to see that this was coming.

I don't think that they are going to raise the price on the existing hardware like Sony, but the PRO model of the Series X that is soon to come will be more money.

[Thundercat77]

After Xbox criticism of Sony for doing this and now they are going with the same plan???

Wow... Xbox is like the Donald Trump of gaming.

[GoodGuy09]

Oof it was inevitable

[GamingSinceForever]

I’m just here for the comments. Don’t mind me. 😂 🍿

[TicklefistCP]

These articles always bring out the armchair CEOs.

[MIDGETonSTILTS17]

Lol, good luck justifying increased hardware prices…. Especially if GP cost goes up, too.

[giovonni]

After reading the article “ hinting” was used as a trigger word. All he said was there were no plans to increase the price. That was back in August, right? However, that doesn’t mean it won’t happen. Eventually, the price will have to rise that is the Nature of “business” what’s promised today doesn’t mean it’s accepted tomorrow this is business, and what’s constant is change. So I expect, as they acquire more assets, services, and products prices will change. It could be soon it can be later. So, why are we debating on the inevitable?

[Elronza]

Game Pass is the best thing going this generation. I'm going to put it on my Steam Deck later today.