You have likely heard the news already, but in the last few weeks Microsoft has increased the price of Game Pass, kind of significantly. The Ultimate tier went from $19.99 to $29.99, for example, which is a 50% increase. Even the PC tier where I’m at went from $11.99 to $16.49, which is a 38% increase. While Microsoft has tried spinning the “value added” from things like free battlepasses to a few F2P games, most everything is the same or worse.
I have a couple of things I wanted to say about this.
First, the amount of “I told you so!”s from people – including former FTC chair Lina Khan – who suggest the price increase is a result of the Activision Blizzard merger is kind of ridiculous. Yes, $55 billion is a lot of investment money that Microsoft expects a return on. However… do we imagine the Game Pass subscription was going to stay at the same level if the merger didn’t occur? Was Microsoft not going to lay off the same game devs as before? Subscriptions go up and to the right. It doesn’t take Nostradamus to predict that Netflix and Disney+ will have a(nother) price increase within the next two years, with or without any mergers.
Incidentally, the math on people canceling their subscriptions is interesting. Even if just under one-third of people cancelled their subscription… Microsoft would still break even. Hell, depending on the network traffic and other server costs, Microsoft probably comes out ahead even if half of everyone quits.
For the record, I’m not here to defend the price hikes or Microsoft in general. We are absolutely seeing an across-the-board decrease in Consumer Surplus as a result of this, and it behooves everyone to double-check their internal math to see if Game Pass still makes sense. If all you’re playing is Hollow Knight: Silksong for the month, well, you were better off just buying it outright. Even the “free” copy of Call of Duty is going to start costing you extra starting in month 3 versus 7+ now.
But let’s not pretend that where we’re at today wasn’t worth how we got here. Microsoft was going to Microsoft anyway. The fact that we got to enjoy a comparatively cheap way to play videogames for years and years was phenomenal. The party is over now? Oh no, back to… buying videogames again.
Compare that to what’s going to happen when the AI music inevitably stops.
In An Age 
Price Hike
Oct 16
Posted by Azuriel
You have likely heard the news already, but in the last few weeks Microsoft has increased the price of Game Pass, kind of significantly. The Ultimate tier went from $19.99 to $29.99, for example, which is a 50% increase. Even the PC tier where I’m at went from $11.99 to $16.49, which is a 38% increase. While Microsoft has tried spinning the “value added” from things like free battlepasses to a few F2P games, most everything is the same or worse.
I have a couple of things I wanted to say about this.
First, the amount of “I told you so!”s from people – including former FTC chair Lina Khan – who suggest the price increase is a result of the Activision Blizzard merger is kind of ridiculous. Yes, $55 billion is a lot of investment money that Microsoft expects a return on. However… do we imagine the Game Pass subscription was going to stay at the same level if the merger didn’t occur? Was Microsoft not going to lay off the same game devs as before? Subscriptions go up and to the right. It doesn’t take Nostradamus to predict that Netflix and Disney+ will have a(nother) price increase within the next two years, with or without any mergers.
Incidentally, the math on people canceling their subscriptions is interesting. Even if just under one-third of people cancelled their subscription… Microsoft would still break even. Hell, depending on the network traffic and other server costs, Microsoft probably comes out ahead even if half of everyone quits.
For the record, I’m not here to defend the price hikes or Microsoft in general. We are absolutely seeing an across-the-board decrease in Consumer Surplus as a result of this, and it behooves everyone to double-check their internal math to see if Game Pass still makes sense. If all you’re playing is Hollow Knight: Silksong for the month, well, you were better off just buying it outright. Even the “free” copy of Call of Duty is going to start costing you extra starting in month 3 versus 7+ now.
But let’s not pretend that where we’re at today wasn’t worth how we got here. Microsoft was going to Microsoft anyway. The fact that we got to enjoy a comparatively cheap way to play videogames for years and years was phenomenal. The party is over now? Oh no, back to… buying videogames again.
Compare that to what’s going to happen when the AI music inevitably stops.
Posted in Commentary
1 Comment
Tags: Consumer Surplus, Inevitable, Microsoft, Price Hike, Xbox Game Pass