A few years back, Microsoft had some fantastic gaming deals. The Xbox Series S was priced at $300, and many found it even cheaper. You could also grab a subscription to Xbox Game Pass Ultimate for just $15 a month, giving you access to a wide selection of games. But in 2025, everything has changed.
This year, Microsoft raised prices twice. The Series S now costs $400, while the Series X starts at $600 for the digital version and $650 for one with a disc drive. That’s a steep increase from just a few months ago. To make matters worse, the price of Game Pass Ultimate jumped 50% this week, going from $20 to $30 a month. This is a significant change, considering it was only $17 last July.
Microsoft isn’t alone in hiking prices. Nintendo raised costs for its Switch and its new model isn’t cheap either. Even Sony upped the price of the PS5, though not as dramatically. These price increases come as the U.S. economy faces uncertainty, making the sudden jumps feel even harsher.
Microsoft seems to believe that loyal gamers will accept these price hikes. They might think that dedicated fans will keep their subscriptions without much thought. For many, the value of $30 for a ton of games still seems reasonable. However, the sudden jump from $20 to $30 might catch long-time subscribers off guard, especially those who enjoyed lower rates.
This price surge puts Microsoft’s Game Pass at a crossroads. While it initially aimed to draw in as many subscribers as possible, the current pricing strategy might push some gamers away. Now, the annual cost for Game Pass is more than double that of a PlayStation Plus subscription, yet Sony’s service offers plenty without needing day-one access to new titles.
As for me, I’ve been thinking about switching away from Xbox. Initially, the combination of a reasonably priced console and Game Pass was appealing, but with these new prices, it now feels less attractive. Getting new players into the Xbox system is more challenging, with the first-year cost for the Xbox Series S and Game Pass edging up to $860. That’s nearly double what I spent before.
Microsoft’s strategy also includes game streaming to TVs, which could open up gaming to more people. Yet, anyone willing to pay $30 for Game Pass likely prefers the performance of a dedicated console. At least streamers can access it on all plans.
It looks like Microsoft is trying to shift costs away from hardware to their subscription services. Many loyal Xbox users might feel neglected by these changes. The big question is if this strategy of charging fewer customers more will pay off in the long run. Personally, I’m not sticking around to find out, and I suspect others may feel the same way.
For a closer look at the gaming industry’s dynamics and pricing strategies, you can check out the Entertainment Software Association’s report on video game sales and trends.
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Xbox Game Pass Ultimate, Microsoft, Xbox Series S, Xbox hardware, Xbox
