Microsoft Lowers Xbox Subscription Costs to Recommit to Gamers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy MSFT?
Source: CNBC
- Subscription Cost Reduction: Microsoft has announced a reduction in the monthly fee for Game Pass Ultimate from $29.99 to $22.99, and for PC Game Pass from $16.49 to $13.99, aiming to attract more players and enhance user satisfaction.
- Content Changes: Upcoming titles in the 'Call of Duty' franchise will no longer be included in the subscriptions, requiring players to purchase them separately at a price of $69.99, which may impact short-term user retention rates.
- Revenue Decline: Although gaming contributed 7% to Microsoft's total revenue in Q4, the segment's revenue fell approximately 10% year-over-year, contrasting sharply with growth in Azure and Microsoft 365, highlighting increased market competition pressures.
- Strategic Restructuring: New gaming chief Asha Sharma indicated that Game Pass had become too expensive, and this adjustment is a direct response to player feedback, reflecting Microsoft's strategic shift in the gaming market aimed at restoring user trust and increasing market share.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 432.920
Low
500.00
Averages
631.36
High
678.00
Current: 432.920
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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