Xbox boss Phil Spencer has warned that price hikes could happen in the new year.
Talking about the future of Xbox Series X | S and Xbox Game Pass, Phil Spencer revealed that the subscription was significantly below its growth targets (opens in a new tab) and that the company may raise prices "on a few things" in 2023.
Phil Spencer Hints at Future Xbox Game Pass or Console Price Increases on WSJ Live "I think at some point we're going to have to raise prices on some things, but as we get closer to this holiday season, we've thought it was important to keep prices down." ." October 26, 2022
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A passing bump?
Despite hopes for 73% year-over-year subscription growth by 2022, Microsft revealed that growth currently stands at 28% overall. This indicates that while Game Pass expanded its user base and saw an increase in subscribers, it fell short of its goal expectations.
Interestingly, the low growth figures are not the same on PC and console. On PC, there has been a 159% growth rate (opens in a new tab), so Microsoft is behind in attracting new console subscribers.
In an interview with WSJ(opens in a new tab), Spencer announced that Microsoft plans to raise prices at some point, but didn't say whether that price increase would affect consoles, Game Pass, software, or peripherals.
The Xbox Series S is considered one of the best and most affordable next-gen consoles, the lack of a physical disc drive making it an ideal choice for those who don't mind an all-digital experience.
However, with the PS5 vs. Xbox Series X being a hotly debated topic, a possible price increase for the latter could boost the popularity of the Series S as gamers look for cheaper options.
Console price increases are not new in 2022. Sony announced plans to increase PlayStation 5 prices in select regions in August; However, due to continued demand for the console, this jump should not affect its fiscal projections (opens in a new tab).
It's unclear when Microsoft plans to raise prices for certain Xbox services, but Spencer says it won't happen until "after the holiday season."