Phil Spencer, head of Microsoft's Xbox division, says prices for the company's consoles, games, and Game Pass could increase in the future. He says that while they've kept prices steady so far, "at some point... we're going to have to increase some of our prices.".
See also: Xbox refreshes the “My Games & Apps” screen
On the Wall Street Journal's Tech Live, Spencer explained that while they have kept their prices the same for the console, games, and subscription services, he believes there will come a time when they will have to raise the cost for some products.
In response to “high global inflation rates, as well as unfavorable currency trends,” Sony announced earlier this year that the price of the PlayStation 5 would increase. At the time, Spencer said Xbox would not follow suit, explaining, “When our customers are facing more economic challenges and uncertainty than ever before, we don’t think it’s the right move.” Given Spencer’s most recent comments, though, it’s hard to say how long that decision might last .
See also: Microsoft confirms new Xbox Game Pass Friends & Family plan
Additionally, Spencer said that Xbox Game Pass is now profitable, although growth has leveled off. The main reason for this slowdown in growth is because “at some point you reach everyone who wants to subscribe to the console.”
While new subscriptions for consoles have slowed, Game Pass for PC is supposedly “seeing incredible growth.” Currently, Game Pass as a whole makes up about 15 percent of Microsoft’s total revenue from Xbox content and services — which Spencer believes will likely stay the same. He explained that while the subscription service may generate more revenue overall as the company continues to grow, it will never make up more than half or 70 percent of its total revenue.
See also: Xbox update: What are the new features it brings
Spencer's comments come a day after Microsoft revealed that Xbox hardware revenue rose 13%, making it the best first quarter for the gaming division. The three percent decline in Xbox content and services revenue was said to have been "partially offset" by the growth of Game Pass - with "more than 20 million people" now using the game streaming service.
Source of information: eurogamer.net
