Microsoft hikes Xbox Game Pass prices, later backpedals

SEATTLE — Based on a press release from Microsoft, subscription prices for a popular game service were to have a price hike. Or at least that was the plan as of Friday.

Initial plans from the tech giant were to increase the subscription rates for its Xbox Live Gold service. Per the release, monthly rates were to increase by $1, while 3-month subscriptions would be $5 more. This would have made the monthly rate $10.99, with the 3-month subscription $29.99.

Microsoft would release a statement to explain the price hike.

“Periodically, we assess the value and pricing of our services to reflect changes in regional marketplaces and to continue to invest in the Xbox community,” the release states.

“We’ll be making price adjustments for Xbox Live Gold in select markets,” the release continues. “In many markets, the price of Xbox Live Gold has not changed for years. In some markets, it hasn’t changed for over 10 years.”

The release would state that the prices for a 6-month or 12-month subscription will remain the same price. Therefore, further re-subscriptions will remain at their current MSRP.

However, there is an incentive for those upgrading to their Game Pass Ultimate service. Ultimate is the next-level subscription service that includes Live Gold and Game Pass in one plan.

Users upgrading from Live Gold to Game Pass Ultimate will have a conversion of their remaining Gold time to Ultimate.

“If you have 11 months left of Xbox Live Gold now, and you upgrade to Game Pass Ultimate,” the release adds. “Those 11 months convert to Ultimate at no additional cost.”

Players should receive notification of the price increases via email and Xbox message over the next month. However, the price increases wouldn’t go into effect until at least 45 days after receipt of the notification.

But now it appears this change isn’t happening.

So, what happened to Microsoft’s price hike?

The announcement was immediately met with backlash en masse from industry leaders and consumers alike. An update would reveal that Microsoft would rescind its prior decision due to overwhelming feedback.

Xbox would share their regret in making the move in a follow-up statement. They stated that they would use the lessons learned from this misstep to help make the Xbox experience more friendly.

“We messed up today, and you were right to let us know,” reads the official statement. “Connecting and playing with friends is a vital part of gaming, and we failed to meet the expectations of players who count on it every day. As a result, we have decided not to change Xbox Live Gold Pricing.”

The statement continues, “We’re turning this moment into an opportunity to bring Xbox Live more in line with how we see the player at the center of their experience.”

What else did Microsoft and Xbox do in response?

In addition to the decision to reverse the price hike, Microsoft is taking matters much further.

A Live Gold membership is no longer a requirement for free-to-play online titles on Xbox consoles. This means there is no longer a restriction towards games like Apex Legends and Fortnite.

“We are working hard to deliver this change as soon as possible in the coming months,” the statement reveals.

The statement would acknowledge the company’s costly mistake. It would also reveal how they intend on making it better going into a new generation.

The response to the reversal

Many reactions would pour in after the reversal announcement. Many would sing Microsoft’s praises for making good on his promise to keep the play in mind regarding its business operations. Others would wonder whether this was a marketing ploy all along.

Internal sources within the Xbox team would reveal that the backlash over the decision was also internal. They would also reveal the reversal was not a pre-meditated decision.

While the decision was costly, despite making it right, it may take some time for the green-and-white brand to regain the trust of its gamers once again.

For more technology, business, and gaming news, follow Jake Leonard on Twitter @JakeLeonardWPMD and Heartland Newsfeed @HLNF_Bulletin on Twitter.

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Jake Leonard

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Jake Leonard, a broadcast media and journalism veteran, is the editor-in-chief of Heartland Newsfeed. Leonard is also GM and program director of Heartland Newsfeed Radio Network, wrestling editor and contributing writer for Ambush Sports, a contributing writer for My Sports Vote and Midwest Sports Network, and a former contributor to Bleacher Report and Overtime Heroics. He resides at home in Nokomis, Ill. with his dog Buster.

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