FoxMcChief
Gold Member
Progress my man. Sometimes you got to drag them kicking and screaming. Game Pass is the future. Either jump on board into paradise, or pay out tooth and nail like chump.
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Microsoft Raising Prices on New, First-Party Games Built for Xbox Series X|S to $70 in 2023
- Thread starter Kiraly
- Start date
Crispy Gamer
Member
Gamepass is a growth strategy for Xbox I'm sure when Phil pitched the idea to the higher ups he had to have a definite time line to achieve a certain amount of subs. Well...they've missed two years in a row on projections and with any growth strategy that stops growing it's time to pivot and make profits by raising prices. This is especially bad for Microsoft specifically because they already don't sell a lot of first party software so I don't presume they'll reach profit targets there so next is consoles. This is the obvious next step because they've already signaled to their share holders that after the holidays prices may have to rise after saying they're losing $100-$200 on each Series console. Further down the line if targets aren't met then gamepass will rise in price but I think it’s the last shoe that'll drop. I think all next-gen games from day 1 should've been $70 and Microsoft knew this as well but they had a plan/time line in order for it to be implemented I just wish Phil would just shut up trying to score cheap points he tends to step on his own message too often.
Hendrick's
If only my penis was as big as my GamerScore!
Thought they would wait for COD to do this. Increases the value of Game Pass which is good.
Unrivaledx88
Member
Matter of time before they raise price on that, im sure ppl will still find deals for it tho
TheShocker
Member
Luckily for us, MS likely won’t have that many 2023 first party releases.
Banjo64
cumsessed
This is especially true for Sony and Microsoft who take 30% of all store transactions and also charge for online play (which comes at essentially no cost to them). They have more easy revenue streams than ever, are making more money than ever and try to pass on their own ballooning development costs, because we need 10 graphic designers on Abby’s temple vein, to us the consumer.
Klosshufvud
Member
Has MS raised the salaries of its employees by 15% to justify this price increase? I feel like all businesses these days use inflation as excuse to increase prices without proper reason. I call it greedflation.
VAVA Mk2
Member
Just got another year of Game Pass for $60 off through CD Keys on Cyber Monday so I feel glad about that...
Dr. Wilkinson
Member
It does seem like from Phil's recent interviews that Game Pass has plateaued and they don't really expect much more out of it. So, yeah I would expect some nominal increases over time, sort of like what Netflix does every 2 years or so. But as far as them needing the revenue to stay afloat, I don't think it's big enough for them to care a whole lot of needing to stop subsidizing that piece of the business. It's nice low effort revenue for them, that's for sure.
Until/ if/ when the console business reaches a point where it's not longer mainly just buying an expensive console, lots of accessories, and lots of software to play on it, I don't think Game Pass is much more than just a very nice competitive/ supplemental way to help Xbox stand out. Since nothing Sony and Nintendo in the way of subscriptions comes anywhere close to what's offered in Game Pass. At this point Game Pass is just in it's own league, by a mile.
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thicc_girls_are_teh_best
Member
I think everyone saw this coming, no? Well, except for the exceptionally delusional.
I'm willing to bet GamePass itself will see a price increase later in 2023 on top of this. By how much, I don't know. Maybe the base moves up to $11.99/month and GPU moves up to $16.99/month, but I think they'll combat a GamePass price increase with the introduction of the Family Plan.
Which if it's like Nintendo's, should allow four people to share a single GamePass sub for probably the cost of what the old pricing is but for 4 people at a discount. So regular GamePass Family Plan for $32/month or GamePass Ultimate Family Plan for $48/month. And realistically, they will actually need to offer annual or x-month plans instead of just month-to-month like they do currently, because that would allow 3P retailers to offer GP/GPU Family sub cards at a lower cost that could drive adoption to that particular plan.
So stuff like a 3-month GP Family Plan sub card for $144, then some spots like CD Keys can sell them for even lower prices like $120 or whatever. That or MS partner with cellular providers and bake in GP Family Plans with mobile data plans or tie All-Access into it; they've already been doing some form of this with regular GP and GPU (with mobile providers).
Either way, yeah, GamePass price increase is probably going to happen, why else raise the price of games just to not sell them if the sub service that already would eat into direct sales revenue stays the same price or gets cheaper? I mean, that's looking at it from a fair business POV, anyway.
I'm willing to bet GamePass itself will see a price increase later in 2023 on top of this. By how much, I don't know. Maybe the base moves up to $11.99/month and GPU moves up to $16.99/month, but I think they'll combat a GamePass price increase with the introduction of the Family Plan.
Which if it's like Nintendo's, should allow four people to share a single GamePass sub for probably the cost of what the old pricing is but for 4 people at a discount. So regular GamePass Family Plan for $32/month or GamePass Ultimate Family Plan for $48/month. And realistically, they will actually need to offer annual or x-month plans instead of just month-to-month like they do currently, because that would allow 3P retailers to offer GP/GPU Family sub cards at a lower cost that could drive adoption to that particular plan.
So stuff like a 3-month GP Family Plan sub card for $144, then some spots like CD Keys can sell them for even lower prices like $120 or whatever. That or MS partner with cellular providers and bake in GP Family Plans with mobile data plans or tie All-Access into it; they've already been doing some form of this with regular GP and GPU (with mobile providers).
Either way, yeah, GamePass price increase is probably going to happen, why else raise the price of games just to not sell them if the sub service that already would eat into direct sales revenue stays the same price or gets cheaper? I mean, that's looking at it from a fair business POV, anyway.
Snake29
Banned
Sony didn't even started this.
Topher
Identifies as young
Only?
JackMcGunns
Member
I mean 2 years ago it wasn't necessary, but calculate world wide inflation now post Covid world and tell me it's still unreasonable for 2023.
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StreetsofBeige
Gold Member
Yup. I'm a GP supporter. Also go half/half with my bro who does NF. I'll buy content when I need to if it's only available on disc, but for the rest I'll just get it off sub plan. Or I'll wait for sub plan.
Some people are just stubborn, or they simply value having that boxed copy on their shelf as decoration because the chances of them going back and digging up their Game Cube to play a disc is almost zero. I can live without showing a shelf of games, and I prefer to save money.
Funny thing most video game sub haters probably sub to a movie/tv/music sub services, instead opening up the wallet and paying $1000s for them when they can if they want to. For games they do that, for other media they dont Amazon sells discs and season sets, you can download and own them on file, and every song can be bought for a measly $1 per song. Yet they dont.
adamsapple
Or is it just one of Phil's balls in my throat?
Reading is really fun guys ..
Forza Motorsport, Redfall, and Starfield will be among the first to reflect the change.
Ass of Can Whooping
Member
I mean 2 years ago it wasn't necessary, but calculate world wide inflation now post Covid world and tell me it's still unreasonable for 2023.
It has fuck all to do with inflation lmao
JTCx
Member
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OmegaSupreme
advanced basic bitch
This trillion-dollar company needs more money guys. Please understand.
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thicc_girls_are_teh_best
Member
I don't think they're confirming that, it's just those are the games they've already explicitly mentioned coming in 2023 from the June Showcase and are projected to launch in the first half, when the price increase takes effect (though I would personally bet against one of those games making the H1 2023 window).
Even if those are the only 1P games they release next year, considering how anemic their release schedule was this year, as long as I'd say two of those releases are genuinely well-received and have long-term retention with gamers (something Halo Infinite & FH5 cannot claim), that would be a massive improvement for them in general.
But that is my own personal opinion.
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Mr Moose
Member
It's not just inflation though, its total costs to make those games.I mean 2 years ago it wasn't necessary, but calculate world wide inflation now post Covid world and tell me it's still unreasonable for 2023.
If people don't like it, simply don't buy it and wait for a sale (like I do most of the time).
Rhazer Fusion
Member
Xbox first party titles will be $70? I knew it was coming unfortunately. Anything that affects consumers negatively seemingly alerts gets copied by the competition. As soon as Microsoft finally get some new first party games out, the price goes up. Those upcoming and anticipated exclusives have to be very good now for Microsoft’s sake. I think this will truly destroy physical sales especially with the games being on Gamepass day one. Btw, I’m pretty sure Gamepass will be going up next.
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freefornow
Member
What, all 221000 of them!? Not everyone at MS works on games.
Dr. Wilkinson
Member
OMG is that really what you're getting out of this? Honestly can't tell if serious.
No, they are saying that beginning with those three major titles, this is the new price for first-party releases. To be fair, they did explicitly say this, if you read it. LOL
crunchyBiscuits
Member
ZehDon
Member
Two and a half years after Sony made it the standard, it's still a shitty move given how much money everyone is making. A publicly traded company has to basically take as much as it can, and Sony's showed there's more to take - hell, it's even been defended.
I expect a Game Pass price increase of USD$2.50/AUD$5.00 per month sometime in 2023 to reflect this.
I expect a Game Pass price increase of USD$2.50/AUD$5.00 per month sometime in 2023 to reflect this.
StreetsofBeige
Gold Member
The fact you are scouring Twitter reactions for this news goes to show how much you got vested in the console war. You can now take a deep breath MS first party games will be the same price after a few years.
Who the hell would do a manual search on Twitter trying to find out people's reactions on video game pricing.
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adamsapple
Or is it just one of Phil's balls in my throat?
Dr. Wilkinson
Member
This is honestly silly. There's more that goes into the cost of running a company than just base salaries. But, obviously to stay competitive and retain people, you have to offer pay that is competitive, or people will leave and go work somewhere else. But to equate cost increases on a one-to-one ratio with employee salaries honestly makes no sense whatsoever.
thicc_girls_are_teh_best
Member
I fail to see how increasing games to $70 affects consumer negatively when the publishers can't control the pay wages of citizens or inflation on them, either. And adjusted for inflation, $70 games today are still cheaper than $70 SNES/Genesis games from 1992, or even $50 PS1 games (that would cost almost $100 in today's money!).
Plus you can always wait for a sale. Even outside of that, Sony weren't the first publisher to increase their games to $70, that was certain 3P publishers. But yes, they were the first platform holder to do so. At the end of the day however, it's up to customers to determine if that affects them negatively and going by sales of quite a few of their 1P games, the vast majority are perfectly fine with the price because they still perceive the value offered in quality to be worth the nominal added cost.
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I specifically asked for when last any subscription service reduced quality in response to stagnating growth. My post hasn't been edited.
You cited Disney Plus, a service that is NOT stagnating. Where's the goalpost being moved here?
That's quite the change from
You expect them to announce new AAA games - if they exist - in a blog post?
ElRenoRaven
Member
Meh I'll just continue doing what I started doing last gen and wait to buy the games on sale. I've saved so much money that way.
Dr. Wilkinson
Member
As has been beaten to death already by others, the price of games hasn't increased since the PS3/ Xbox 360 era, while the cost to create them has multiplied like 10x fold, at least. Video games have literally never been cheaper, when you adjust for inflation. And especially when you factor in the cost of making modern AAA games. Videogames are an expensive hobby. But for the return on the investment when you drop $60 on a game like Elden Ring or BotW, but you gain like 400 hours of content, it's hard to argue you're not getting your money's worth.
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DerFuggler
Member
Everyone subbed to Gamepass
ShadyAcshuns
Member
I blame Topher for this.
thicc_girls_are_teh_best
Member
Actually isn't Disney+ bleeding revenue and not making profit in spite of the sub counts? AFAIK they were intending it to start generating regular profit a while ago but it has simply not happened.
And while the question of content quality on Disney+ may be open to interpretation....actually no they just finished with She-Hulk. The quality has been terrible.
At least WRT MCU Phase 4 stuff and Star Wars and, well, those have been the main pillars for growing Disney+ over the past two years.
adamsapple
Or is it just one of Phil's balls in my throat?
StealthGoblin
Banned
Of course, but it’ll be a shit show when it happens.
Dr. Wilkinson
Member
All streaming services save for maybe Netflix are priced low to build subscriber base. They are heavily subsidized and make hardly any money at all. The long game is to be the next Netflix where you have so many built-in shows that are only on your service that people have to stay subbed, because it's basically a utility. So the model is that you keep people on and then raise your price slowly over time.
Banjo64
cumsessed
I’d rather suck a donkey’s flaccid penis or play Crackdown 3 than have a subscription based future.
StreetsofBeige
Gold Member
Yup.
And this hold true for everything that has gone up in price the past 2 years.
When prices go up and the economy is supposedly in a big pinch, the theory is expensive non-essential stuff like travel, vacations, furniture etc... take a big hit. While essentials like food (everyone has to eat), utilities, driving to work dont get hit as people still got get through live at the most basic survival purchases.
Where do games fit in? On paper it seems like a luxury good that would get hit. But going by sales and profits it seems it doesn't get affected much at all. Covid helped with people stuck at home with nothing to do but spend more on games and movie sub plans, but will sales and profits keep zooming up? Or will it crash and burn due to inflation and everyone back outside? The companies seem to be doing fine as we head into 2023.
Maybe there's more money left on the table and $80 US games are around the corner. You never know. All comes down to who wants to try it first, it shows success, and then everyone else joins in. At some point it will hit $80, but a matter of which year.
Rhazer Fusion
Member
That’s true, but imo not every game is worth $70 or a price increase even with inflation. I remember literally everyone was ripping Sony apart for charging $70 for first party games so I’m just wondering if that same energy will be applied to Microsoft.
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