Microsoft is hiking Xbox Game Pass prices by up to 25 percent

Microsoft has decided to raise the prices of its Xbox Game Pass tiers after months of rumors and speculation that it might do so. This price increase spans across every tier, with the video game giant introducing a new "Standard" tier.

The price increase took effect on Wednesday this week, which means that around 34 million Game Pass subscribers worldwide, per data from the BBC, will now be paying a new price of $19.99 per month for the Game Pass Ultimate, a $3 increase from the previous price $16.99 per month.

Subscribers will also be paying a new price of $11.99 per month for PC Game Pass subscriptions if they want to continue having access to Day One releases.

The lowest plan, Xbox Game Pass Core—the replacement for Xbox Live Gold—is also jumping from $59.99 per year to $74.99. That’s a 25% increase in annual cost without the inclusion of any Day One titles. However, the price per month will remain $9.99.

Microsoft is launching an Xbox mobile gaming store to challenge Apple and Google
Microsoft is opting for a web-based platform, accessible from any device with a web browser.

Speaking of the new "Standard" tier that Microsoft is bringing to the Xbox Game Pass, it would have a price tag of $14.99 per month and wouldn't include any Day One releases. This means that subscribers will not have access to certain games, such as Call of Duty: Black Ops 6 if they decide to subscribe to the new Standard plan.

Interestingly, Microsoft has decided to allow old subscribers who paid $10.99 for the Xbox Game Pass for Console access to Day One titles as long as they keep their auto-renewals active, although the new price changes will take effect for them starting September 12 this year.

On the other hand, the price changes will take effect immediately for new members on the Standard plan. If you are a new member, you do not need to worry, Microsoft has promised that you will get access to hundreds of games, but it will exclude those that have just been released, as well as a few extra games that are only available to Ultimate subscribers.

CHART: A Look at the PC and Console Gaming Market in 2024
A flat growth trend is expected to continue in 2024 and into the coming years

Microsoft also said that some games that are available on Game Pass Ultimate at launch may be added to the Standard plan at a later date. Many continue to wonder how Microsoft can afford such a move and are wondering if the company will introduce higher tiers to Game Pass in the future.