Microsoft Halts Xbox Game Pass Ultimate Price Increase After Backlash

Microsoft has decided to pause its planned price increase for the Xbox Game Pass Ultimate subscription following significant backlash from users. The adjustment, which would have raised prices by over 50%, faced strong criticism as gamers expressed their frustration during challenging financial times.

Customer Reaction and Initial Announcement

Last week, Microsoft unveiled what it described as the “biggest update yet” to its Xbox Game Pass service. This included a staggering price hike for the Ultimate tier, prompting an outcry from subscribers. Many users felt the change was excessive, particularly in a climate where affordability is already a concern for many households. Comments on social media accused Microsoft of “gaslighting” customers through what they perceived as misleading marketing tactics. The potential for “mass unsubscribing” from the platform loomed as news spread.

In response to the uproar, Microsoft announced a temporary pause on the price increases, but with notable limitations. While current subscribers in several countries will not see immediate changes, new customers will be subject to the updated rates. The countries initially spared from the price hike include Germany, Ireland, South Korea, Poland, and India.

Details of the Price Adjustment

An email sent to Xbox Game Pass Ultimate subscribers clarified that the price increases would affect only new purchases, leaving existing users in these markets unaffected as long as they remain on auto-renewal plans. Microsoft emphasized that should subscribers choose to cancel their plans and then repurchase, they would incur the new rates. This means that in Ireland, for instance, existing users will continue to pay €17.99 instead of the newly proposed €26.99.

Kari Perez, head of Xbox communications, reassured users, stating, “Our recent Game Pass update remains unchanged. Current subscribers in certain countries will continue to renew at their existing rate for now, in accordance with local regulations.” She also confirmed that subscribers would receive at least 60 days notice before any changes take effect.

The new pricing structure is set to be implemented for new subscribers starting October 1, 2023. For current subscribers, adjustments will occur at their next billing cycle, with changes likely falling on November 4, 2023.

As part of the update, Xbox introduced three upgraded Game Pass plans: Essential, Premium, and Ultimate. The most popular tier, which was initially set to rise from £14.99 to £22.99 per month in the UK, offers expanded game libraries, including access to new titles from Microsoft-owned studios on their release day. These new games can retail for approximately £70 if purchased individually.

This recent development illustrates the delicate balance Microsoft must maintain in catering to its gaming community while navigating the complexities of pricing strategies in varied global markets. The company’s swift response to user concerns may serve to reinforce its commitment to customer satisfaction in an increasingly competitive gaming landscape.