Game Pass Ultimate Price Jumps 50% Amidst Reported Call of Duty Losses
Microsoft recently announced a significant increase in the price of its Game Pass Ultimate subscription, now setting players back $30 per month. This marks a substantial 50% hike from its previous cost, a decision that has sparked considerable discussion among gamers and across the wider industry.
According to reports from Bloomberg, this price adjustment directly stems from financial setbacks Xbox experienced after integrating Call of Duty into the Game Pass service. Internal estimates suggest that Microsoft missed out on over $300 million in revenue from Call of Duty game sales on PC and consoles last year because players opted for a Game Pass subscription instead of purchasing the title outright.
Analyst Views and Rising Costs
Industry analyst Joost Van Dreunen commented that the Game Pass service hasn't achieved the explosive growth Microsoft anticipated following its massive $69 billion acquisition of Activision Blizzard. Furthermore, the rising costs associated with maintaining infrastructure and ongoing game development are reportedly no longer sustainable under the previous pricing model.
Launched in 2017, Xbox Game Pass began as an affordable alternative, offering access to roughly a hundred titles for just $10 a month. However, the strategy evolved to include new releases on day one, which, according to former Xbox employees, began to undermine traditional sales of games priced at $60-70 per copy. This trend was particularly evident with Call of Duty: Black Ops 6, which saw 82% of its sales on PlayStation, as many Xbox players chose a Game Pass subscription over a permanent purchase of the game.
New Game Pass Tiers Explained
Microsoft is now offering a restructured Game Pass lineup:
- Essential: $10 per month for access to approximately 50 games.
- Premium: $15 per month, offering over 200 games.
- Ultimate: $30 per month, providing more than 400 titles, including new releases on day one such as the upcoming Call of Duty: Black Ops 7 and The Outer Worlds 2.
While Microsoft states that these changes aim to provide gamers with “more flexibility and choice,” the reality for many players is that access to major day-one releases, a key draw for the service, has become a considerably more expensive proposition. This shift means players must now weigh the increased cost of the Ultimate tier against the value of owning individual games, potentially altering how many choose to access new blockbusters.
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