Speaking at WSJ Tech Live, Microsoft’s head of gaming Phil Spencer has hinted that the company will be increasing prices in the future. Spencer discussed the console’s pricing, as well as games being sold by rival companies (including Sony), at the $70 price point. “I think at some point we’ll have to raise the prices on certain things. But going into the holiday we thought it was important to maintain the prices,” Spencer reveals, giving context to why we haven’t seen Microsoft pumping up prices. “We’ve held price on our console, we’ve held price on games… and our subscription. I don’t think we’ll be able to do that forever. I do think at some point we’ll have to raise some prices on certain things,” he adds.
“I do think at some point we’ll have to raise the prices on certain things, but going into this holiday we thought it was important to maintain the prices.” — Tom Warren (@tomwarren) October 26, 2022 Sony increased the price of the PlayStation 5 console in August 2022, stating that high global inflation rates and adverse currency trends were the reasons behind the company’s decision to make their products more expensive. The move caught gamers by surprise and reactions were broadly negative. Many players have commented that the move was a cash grab as there is still a shortage of PS5s in the market. Some have accused Sony of being anti-consumer because of the price increase. In response to the price increase of the PS5, both Microsoft and Nintendo both issued statements that they do not intend to increase the prices of their consoles. The companies’ decision was clearly influenced by Sony testing the room, so to speak. Microsoft has so far been able to keep the prices of both its consoles and games at the same price point, and the company’s first-party games have stayed at $60. Nintendo has, however, had its first $70 title with The Elder Scrolls V: Anniversary Edition, that was launched earlier this month for the Switch. Ubisoft increased its pricing for games to $70 last month but stated that only new AAA titles like the much-delayed Skull and Bones will be affected. Back then, Microsoft’s Phil Spencer said that it was not considering increasing its prices as it might be too costly for casual games. Microsoft also relies heavily on its Game Pass subscription. Individual game sales have not become a priority for the company as most exclusive games from Microsoft are available via the Xbox Game Pass from day one. The company is now showing off the number of Game Pass subscribers rather than the number of copies sold for a specific game. The Xbox Game Pass is currently priced at $9.99 while the Xbox Game Pass Ultimate costs $14.99. For comparison, PS Plus Premium costs $17.99 per month. PlayStation Plus Premium is comparable in terms of benefits to the Game Pass Ultimate. For now, Xbox gamers may still enjoy the same price point for games, Game Pass, and consoles. We may get an update from Microsoft after the holiday season on the pricing for their services.
