Microsoft has raised the price of its top Xbox Game Pass subscription tier to $29.99 per month, up from $19.99. This change comes as the company rolls out three new subscription tiers, including the Essential, Premium, and Ultimate tiers, in anticipation of the launch of two new Xbox ROG Ally handheld consoles. The new Essential tier starts at $9.99 per month and provides access to over 50 games, while the Premium tier at $14.99 offers access to more than 200 games. The Ultimate tier, at $29.99 monthly, grants subscribers access to over 400 games, day-one releases, enhanced cloud streaming quality, and a range of additional services such as EA Play, Ubisoft+ Classics, and Fortnite Crew.
Game Pass generated nearly $5 billion in fiscal 2025 revenue with 34 million subscribers in 2024. Console hardware prices are also increasing, with the Xbox Series X rising $50 to $649.99 starting October 3. The announcement comes as Microsoft prepares for the launch of its new Xbox ROG Ally handheld consoles, which are set to be released on October 16. The launch of these consoles is expected to drive demand for Xbox Game Pass subscriptions, as players looking for mobile gaming experiences will find the subscription service to be an attractive option. The pricing changes are likely to have a significant financial impact on the gaming industry, as Microsoft’s increased revenue from Game Pass could influence the strategies of its competitors in the console and subscription gaming markets.
Microsoft’s decision to raise the price of its top subscription tier has sparked discussions about the future of gaming subscriptions. Many gamers are concerned that the increase in prices may deter some subscribers, particularly those who are budget-conscious. However, the company argues that the pricing strategy is necessary to maintain the quality of the service and to invest in new content and features. The expansion of Game Pass into three tiers allows for greater flexibility, as gamers can choose the level of access that best suits their needs and budget. With the launch of the new consoles and the continued growth of the subscription model, Microsoft is positioning itself as a leader in the gaming industry, with a strong focus on innovation and customer satisfaction.