Xbox Game Pass Price Increase Explained: When It's Happening and if It's Still Worth Buying

The cost of gaming's largest subscription service is going up. Xbox Game Pass has long been championed by players as one of the best deals in entertainment, offering a massive library of games for a single monthly fee.

But with new price hikes on the way, the big question on every gamer's mind is: When does this change take effect, and does the math still work out in your favour?

Get ready for a major hike: Xbox Game Pass Ultimate is getting a significant price adjustment, with Microsoft setting the new monthly cost at $29.99 (£22.22). This change marks a notable 50% increase for subscribers, meaning players will pay nearly $120 (£88.92) extra over the course of a year.

The substantial price increase is accompanied by added value, including the addition of Ubisoft+ Classics and Fortnite Crew, alongside a commitment to more than 75 titles launching directly into the service each year.

The change indicates Microsoft's strategic focus on expanding its subscription model at a time when game subscription revenue is experiencing strong global growth, as reported by The Game Business.

Why the Sudden Game Pass Ultimate Price Increase?

The price for Game Pass Ultimate has increased sharply by 50%, moving from $19.99 (£14.81) to $29.99 (£22.22). This change means the service is now almost 77% more expensive than it was in August 2024, when it cost just $16.99 (£12.59).

Microsoft attributes the higher subscription cost to the expanded game library and increased benefits. These additions include access to third-party services like Ubisoft+ and Fortnite Crew, which the company notes are valued at nearly $20 (£14.82) a month alone.

For loyal subscribers, this price hike translates to an extra $120 (£88.91) annually, a sum that could otherwise buy almost two brand-new AAA titles. Despite this, the company still maintains that the overall value of the package remains unmatched, according to The Game Business.

What New Benefits Justify the Higher Cost?

The updated subscription price introduces several significant new features, including the addition of Ubisoft+ Classics and Fortnite Crew. Users will now have more choices from AAA libraries and access to exclusive live-service content.

Microsoft further announced a commitment to bring more than 75 new games to the service annually. This represents a 50% increase in the number of games compared to previous offers, according to The Game Business report.

The line-up features major releases from Xbox Game Studios, Bethesda, and Activision Blizzard. Highlights include fan favourites such as Call of Duty: Black Ops 6, Indiana Jones and the Great Circle, Avowed, Doom: The Dark Ages, Clair Obscur: Expedition 33, Blue Prince, Oblivion Remastered, and Hollow Knight: Silksong.

Through the addition of these new features, Microsoft aims to justify its continued claim that Game Pass is the 'ultimate' choice for gaming subscriptions.

How are Gamers Reacting to the Price Hike?

Data from Circana's survey reveals an apparent conflict: While most players subscribe to Game Pass for its included games, cost is frequently cited as the primary factor when they eventually cancel the service.

With household budgets already stretched by rising living costs, the $29.99 (£22.22) monthly fee may prompt some individuals to cancel their Ultimate subscription, a concern highlighted by The Game Business.

Microsoft may retain a significant portion of its user base by keeping its lower subscription tiers budget-friendly. Game Pass Premium, at $14.99 (£11.11), offers a larger game library and cloud streaming access without the hefty Ultimate price tag.

Given that most players spend the majority of their time on back-catalogue games rather than day-one hits, these lower tiers may prove to be a better value.

Assessing the Value: Is Game Pass Still a Good Deal?

The math confirms that Game Pass continues to offer excellent value, despite its higher price point. Microsoft highlights that the games played by the average Ultimate subscriber would cost them $550 (£407.50) a year without the service.

When you consider that the full game catalogue is valued at more than $10,000 (£7,409.10), the financial benefit remains undeniable.

Betting on the all-in-one power of Ultimate and the affordability of its lower tiers, Microsoft is positioned well to capitalise on the current market. This is crucial as US subscription revenue has jumped 21% annually, reflecting a strong player desire for cost-effective gaming options, according to The Game Business.

Microsoft is staking its strategy on the belief that Ultimate's new features and enormous collection of games will justify the increased price, keeping customers enrolled despite the hike.