Xbox Game Pass is ‘sustainable’ with ‘no plan’ for price increase says Microsoft

Phil Spencer has shot down rumours that Game Pass is to get a major price increase next year and insisted it’s here to stay.

The Xbox Series X/S may not have any major exclusives at launch but that doesn’t really matter when subscription service Game Pass has become the console’s killer app.

But with so many first and third party games available to play for just £7.99 a month many have questioned whether Microsoft is making any profit from it and if they can keep it going at that price forever.

According to Xbox boss Phil Spencer though there are no plans for any changes, as he claimed on podcast Dropped Frames that, ‘We like the value that Game Pass is today and from a business model it’s completely sustainable the way it is and I mean that.’

‘I’ll be honest, there are developers that have some concerns, and my inbox is there, and I have conversations with a lot of those developers asking what are our real long-term goals’, said Spencer.

‘We get questions about, ’Hey, is this just some kind of go secure a bunch of players and then rack the price up to a new level?’ I say there’s no plan for us to do anything like that.’

He also addressed concerns that Game Pass would limit the types of games that are greenlit in the future, suggesting that the service would actually increase the range of games that are funded, including games ‘that really only kind of work in a Game Pass model’.

‘It’s not like I’ve got a crystal ball that I can tell somebody what Game Pass is going to look like in five years,’ added Spencer. ‘What I can say is our motivation is not to turn everybody into a subscriber – we think it’s an option for people.’

Previously, Xbox marketing chief Aaron Greenberg had said that Game Pass was, ‘not a big profit play’ but still gave no indication that, as many suspect, it is actually losing Microsoft money.

Even if it is though, Microsoft can easily afford it and while investors won’t want to see a loss-making service continue for too long the clearly positive effect that Game Pass is having on Microsoft’s Xbox business is going to mean it’s here to stay for a long while yet.

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