Phil Spencer Hints At Xbox Game Pass/Console Price Increases WSJ F2P Most Popular Model, 10%-15% Game Pass Revenue Goal

So SW, what’s gonna increase in price first? The consoles? Game Pass? $70 games?

#value

Game Pass and Games will probably increase.

ow no only sony is a evil dictator.

bu bu but only sony increases prices.

70 bucks for games is so not consumer friendly.

xbox fans will be so owned.

I can see Game Pass increasing in price in the future. I fully expect it to as they continue to grow the size of the library. I’d still be pretty comfortable with a price increase in it myself as I find it to be of great value currently.

GamePass, Microsoft needs more money to buy more studios and games. We are honored to pay the tax. Microsoft should also increase game price to $70, this will help more move to GamePass to save money and further stick that knife down Sonys evil dictators throat.

Increase to 70 bucks? Game Pass going up?

Listen to me when I say this, get ready for MS to do the Sony method when it comes to GP in the future. They'll do it for some big titles to try and grow numbers, but if the subs aren't consistent, and people only drop in to play a title and bolt, I guarantee big FP games will start skipping GP in the future.

i'm sure Game Pass will increase "at some point"..

just like literally every other subscription service..

Lol they love hinting at stuff. Go create some new video games for us Philip. It's the business you are in. Not game pass. You are supposed to be a video game company. Fund studios for gods sake. You can't keep releasing halo, Forza and gears each year lul.

That seems to work for Sony, who just releases God of War and Gran Turismo games.

He wasn’t only referring to Game Pass. 😬

Bu bu bu bu MS wont raise prices!!11!! lolz

@kvallyx:

Can you name rest of the games they released? They had now in 10 years 2 gow games on PS4 which if it wasn't for the stoppage of life from the virus this new gow game would of been a PS5 exclusive. Same goes for gt.

"Xbox Games Pass. I think it'll stay in that 10-15% overall revenue, and it's profitable for us" - Phil Spencer

Nice to see that Phil confirmed Game Pass is profitable. I was concerned!

@goldenelementxl: lol, this thread. Ok, so what, this is something we all were expecting for a long time. I personally think they should make a few games pay to play, while adding them on gamepass. Stuff like blizzards WoW. COD won't be on gamepass immediately, and thats something you even noted in another thread. So they can profit from that as well. Not to mention the micro transactions and free 2 play games like fortnite. They may increase gamepass prices, but honestly, its a great deal as it is. If they do, I will be happy to pay that tax.

You don't end up being a $1.7T company w/ $100B+ in cash by eating costs.

Not to mention ... Microsoft Reports Slowest Revenue Growth in Five Years

As folks at Era are asking, if it’s profitable at a 10%-15% total revenue number, why are they exploring increasing prices across any and all categories? But since I’m not allowed to use my brain or math here at SW, we’ll just play dumb at take Phil at his word.

Hahahahahahahahahaha

Era? LOL

Increase pricing to offset increasing costs, and to maintain profit. Like every normal company.

Phil > You/Era.

But at least we finally have the facts now. Game Pass is indeed profitable. Great news for gamers around the world.

see guys only sony can raise price and be called evil.

but if nin does it or xbox we honor to pay more.

i didn't say he was.. 😬

a price increase for games is plausible, at least historically anyway.. I personally don't believe in a blanket price increase to $70.. an increase in price for consoles, years after release, is simply unjustifiable..

let's hope they don't go down the same road as Sony in those regards..

People are 100% NOT going to keep the same energy if Microsoft does it.

PlayStation is seen as evil because they are market leader (Microsoft's words) while poor ol' Xbox is the underdog.

Truth is, Microsoft is one of the largest and, most profitable companies on the planet; you don't end up being that successful by eating costs.

@Antwan3K: I agree. A game increase should on a game by game basis. Phil did state they are selling hardware at a loss, and hardware is where they’re making all their revenue 2 years into the generation. Meaning, they are still taking on losses in their biggest revenue metric. So I can see why they’re tossing around the idea of hardware price increases. It’s a terrible idea when still trying to gain consumers. But consumer favor doesn’t pay the bills without actual transactions taking place. And hardware is where the majority of the money is made, still

Yeah, I have no idea how people painted MS as a spunky underdog when they're a two trillion dollar tech giant with the capital to buy competitors or buy the market from under them. They will NEVER be David up against Goliath, and it hasn't been that way since the 70s. It feels so much like astroturf

@goldenelementxl: console hardware prices have always decreased over the years and hardware makers eventually still get in the green on those margins..

increasing console prices years after release is an unjustifiable concept.. full stop..

and wait, did you just say that the majority of gaming revenue is generated from hardware sales?.. 🤔

That’s what the Xbox numbers from yesterday said… Q1 growth driven by hardware revenue. And just a bit ago, Phil said Game Pass will make up 10%-15%. No news on software, but that Game Pass revenue seems to be impacting software revenue in a way…

Hey Phil, here is a crazy idea:

DON'T BUY COD FOR 78 BILLION, ITS NOT EVEN WORTH 70 DOLLARS

@Antwan3K: Sorry, I thought we were talking about growth. That’s my bad

@Antwan3K said:

@goldenelementxl said:

@Antwan3K said:

and wait, did you just say that the majority of gaming revenue is generated from hardware sales?.. 🤔

That’s what the Xbox numbers from yesterday said… Q1 growth driven by hardware revenue. And just a bit ago, Phil said Game Pass will make up 10%-15%. No news on software, but that Game Pass revenue seems to be impacting software revenue in a way…

I was about to post that same thing, lol.

@kvallyx: Yeah, I misunderstood. That’s why my post says “Q1 growth driven by hardware sales.” I thought we were talking about growth, not overall revenue.

In the future, could be tomorrow could be in a few years time. Game and GP will probably increase as some point but consoles won't.

@goldenelementxl: i was speaking in reference to the statement "And hardware is where the majority of the money is made"..

anyway, you clarified.. moving on.. 👍🏽

Fair enough.

Man whatever happened to that studio who had the idea of doing AA games and selling them at like a $40 price point?

Ah, the good ol days. Now that AA games are dead, we either get f2p or $70 games. Or better yet, $70 with microtransactions. We voted this gaming world into existence with our wallets… Congrats everyone!

This was always inevitable!

Oh no , and lems said this will never happen 😂

We'll see gamepass increases first as they finally start rolling out 1st party games. Then $70 games after the acquisition if it goes through. Consoles won't see increases but they will put out a more expensive "pro" model while they keep the prices of existing hardware the same.

Just a couple of months back i was saying how the price of GP will increase when they reach higher numbers. Lems were moaning and saying that its not true. But not only is it true, its coming way sooner than i expected🤡

You lems are always wrong, so don't ever bother arguing with me.

It’s always the green guys with the most moronic takes. Bravo for continuing your clownship.

Jim Ryan needs to spit on these people for spouting lies saying "were not increasing anything" BS Microsoft u tried to raise the price of xbox live by double and now your saying we might raise prices after you said you wouldn't WTF do we believe anymore from you?

@hardwenzen: I was told that Microsoft is a trillion dollar company and doesn’t care about costs

I was told the same thing, but seeing how 343i had to cut split screen coop from Infinite because they needed more resources for their live service, i can tell the Xbox division is getting roasted. Is this because acquiring Activision was simply too explensive? Does GP makes em lose THIS much money? We will never know, but its looking grim, and that might frustrate some.

@hardwenzen: do you think it frustrates kvally?

I honestly believe that he is so frustrated for the last few weeks that he is converting into a Sony Professional. Why else would he pre order Ragnarok, a Ragnarok themed controlled AND the new PS5 elite controller? The writing is on the walls, and we're seeing it clearly.

@hardwenzen: do you think he has lost faith in Xbox?

What in the “silliest comment” is this post?