Microsoft revealed some important updates for Xbox Game Pass today, most notably a 50% price hike for Game Pass Ultimate, now costing $30 per month. However, this might not be the only adjustment to the service, according to at least one industry analyst.
Daniel Ahmad, an analyst at Niko Partners, believes Microsoft is counting on its console gamers to remain dedicated to Game Pass, even with the price increase. The company is also expanding its game releases to competing platforms like the PS5 and Switch 2, alongside its continued focus on PC gaming. Ahmad also proposes that Microsoft might introduce an ad-supported tier for Game Pass to ensure the service’s long-term viability.
Currently, Xbox’s biggest challenge is shifting from a system where everything revolves around the console to one that works across many devices. Console sales have decreased significantly, and while PC Game Pass is available, it hasn’t gained much traction. Cloud gaming is still considered an addition to traditional gaming, not a main way people access games,” he explained.
According to Ahmad, Microsoft is counting on its current console players continuing to subscribe to Game Pass even with increased (or current, with Premium) pricing. Simultaneously, they aim to expand growth on PC, PlayStation 5, and the anticipated Switch 2 by releasing fully priced games on those platforms either on launch day or shortly after, effectively broadening their reach.
A Game Pass ad tier?
Given the current situation, the key question is whether Game Pass can continue to be financially viable for Microsoft,” Ahmad explained. To help Game Pass expand moving forward, the company might explore different options, such as adding a tier that includes advertisements, Ahmad added.
The main challenge now is whether Game Pass can remain successful outside of consoles, and figuring out the best way to reach players on those platforms. To do that, they’ll likely need a more affordable option (Essential) and try out different approaches like cloud gaming, ad-supported tiers, or focusing on mobile devices, he explained.
Game Pass is likely to change and improve in the future, but it’s still uncertain if ideas like an ad-supported version – as mentioned by Ahmad – will actually happen. We don’t yet know how an ad-based Game Pass would function. Square Enix tried something similar in 2012 with Coreonline, a streaming game service that relied on ads, but it was discontinued after just 15 months because players didn’t use it enough.
Starting now, the price of Game Pass Ultimate is increasing from $20 to $30 monthly. The Core and Standard plans have been updated to Essential and Premium, but their prices will remain the same. For the higher price, Ultimate members will receive access to Fortnite Crew and Ubisoft+ Classics, as well as many more games.
So, Microsoft is raising the price of Game Pass Ultimate and PC Game Pass right before Call of Duty: Black Ops 7 comes out in November. Basically, if you’re planning on playing the new Call of Duty with Game Pass this year, it’s going to cost me a bit more than I expected.
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2025-10-02 00:10