Game Pass price drop signals shift in strategy under new Xbox leadership

Game Pass price drop signals shift in strategy under new Xbox leadership

Microsoft slashes Xbox Game Pass Ultimate price by $7, yet future Call of Duty games will launch a year later. Is this a strategic shift for better value?

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Microsoft is reducing the monthly cost of its Xbox Game Pass Ultimate subscription from $29.99 to $22.99, a significant cut of $7. However, this change means that future installments of the popular Call of Duty series will not be available on the service upon their release, pushing their inclusion to approximately a year later.

Asha Sharma, who took over as head of Microsoft Gaming in February, has initiated this pricing shift as part of her strategy to enhance value for subscribers. This follows a prior price increase in October that raised the subscription cost by 50% amid concerns over the financial sustainability of adding new games to the platform.

In addition to the changes for Xbox Game Pass Ultimate, Microsoft is also lowering the price of its PC Game Pass from $16.49 to $13.99 monthly. The adjustments come during a challenging period for Microsoft's gaming sector, which saw a 9% decline in revenue during the last holiday quarter, totaling $5.96 billion.

Sharma's recent comments suggest that these moves may be part of a broader overhaul of Game Pass, aimed at creating a "more flexible system" for gamers, though the specifics of this vision remain to be seen.

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