Microsoft Xbox Game Pass Profitable at $5B, Plans 50% Ultimate Price Hike

Microsoft has revamped its Xbox Game Pass subscription service, introducing new tiered plans labeled Essential, Premium, and Ultimate, with the highest tier's price increasing by 50% to $29.99 per month. This top tier now offers more than 75 day-one releases annually, including major titles like Call of Duty: Black Ops 7 and Ninja Gaiden 4, along with bundled third-party services such as Fortnite Crew, EA Play, and Ubisoft+. Xbox Game Pass, which operates like a Netflix for games, generated $5 billion in revenue last fiscal year and is confirmed to be a profitable business by Xbox president Sarah Bond, who also highlighted increased payouts to creators and growing developer participation. Microsoft is pushing Xbox as a comprehensive gaming ecosystem accessible on various devices, bolstered by Xbox Cloud Gaming and a revamped rewards system across all tiers. Despite some controversy over the price hike and subscription model's impact on retail revenue, the company emphasizes that Game Pass supports creative diversity and sustainability in game development. The service's expansion reflects Microsoft's strategic shift to gaming subscriptions and streaming as central pillars of its entertainment division.