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Microsoft Hikes Xbox Game Pass Ultimate Price by 50% as Service Expands

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Microsoft’s Xbox division has announced a significant 50% price increase for its top-tier Game Pass Ultimate subscription, raising the monthly fee from $19.99 to $29.99. The move comes as the company broadens the service’s offerings with new first-day game releases, enhanced cloud streaming, and an overhauled rewards system designed to strengthen its position in the growing “games-as-a-service” market.

According to Xbox’s Wednesday announcement, Game Pass Ultimate subscribers will now gain access to more than 75 new first-day releases each year, including blockbuster titles such as Call of Duty: Black Ops 7 and Ninja Gaiden 4.

The price hike follows a similar move in hardware: Microsoft last month raised the prices of its Xbox consoles in the United States for the second time this year, citing tariff-driven cost pressures and inflation in supply chains.

The expansion of Game Pass Ultimate reflects Microsoft’s long-term strategy to pivot toward subscription-based and cloud-driven gaming as traditional console sales slow amid economic headwinds. By integrating cloud gaming access across tiers, the company aims to attract a wider base of mobile and PC gamers who prefer flexibility over physical ownership.

In addition to the Ultimate tier change, Microsoft has rebranded its lower tiers — now called “Essential” and “Premium” — and introduced unlimited cloud gaming to both. Prices for these two plans will remain unchanged.

Game Pass, which first launched in 2017, has become a central pillar of Xbox’s business strategy, helping Microsoft compete with Sony’s PlayStation Plus and Nintendo’s online services. Analysts say the latest expansion and pricing update position Xbox more firmly in the subscription entertainment ecosystem, where consistent monthly revenue and cross-device playability are key to long-term growth.

Industry experts note that while the price increase could prompt some cancellations, the addition of high-value titles and advanced features may offset churn, particularly among dedicated players.

“Microsoft is betting that players will accept higher costs in exchange for convenience and exclusive access to major releases,” said one industry analyst. “It’s a high-stakes move that could redefine how gamers view value in digital entertainment.”

The new pricing structure goes into effect immediately for new subscribers, while existing members will see the changes reflected in their billing cycles later this year.

Niantic Sells Game Division to Saudi-Owned Scopely for $3.5 Billion Amid Shift to Geospatial Tech

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Niantic Labs, the maker of the highly successful “Pokémon Go”, announced on Wednesday that it would sell its video game division to Saudi Arabia-owned Scopely for $3.5 billion. This move marks a significant shift for Niantic, which will now focus on geospatial technology after failing to replicate the overwhelming success of its 2016 mobile game hit.

The sale is part of a broader strategy by Saudi Arabia to bolster its gaming sector. The kingdom’s sovereign wealth fund, through Savvy Games, had already acquired Scopely for $4.9 billion in 2023, as part of its effort to diversify its economy away from fossil fuels. The transaction will advance Saudi Arabia’s ambitions of becoming the “ultimate global hub” for the gaming industry.

In addition to the sale, Niantic will distribute an extra $350 million to its equity holders. Furthermore, the company will spin off its geospatial AI business into a new entity, Niantic Spatial, led by Niantic founder and CEO John Hanke. Niantic Spatial will be funded with $250 million, of which $200 million will come from Niantic’s balance sheet and $50 million from Scopely. Niantic’s original investors will continue to hold shares in Niantic Spatial.

This strategic shift follows several challenging years for Niantic. After the phenomenal success of “Pokémon Go”, the company struggled to replicate that magic with other titles, including the “Harry Potter: Wizards Unite” game, which was shut down in 2022. Niantic also had to make layoffs in 2022 and 2023, further signaling the company’s struggles.

For Saudi Arabia, the deal aligns with its plan to invest nearly $38 billion in the global gaming industry through Savvy Games Group, which is already a significant investor in major video game companies, including a 7.54% stake in Nintendo.

Nintendo Lowers Switch Sales Forecast Ahead of New Console Launch

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Nintendo (7974.T) has reduced its full-year sales forecast for the Switch console by 12%, now projecting only 11 million units sold as the device faces waning momentum ahead of the release of its successor later this year. Despite the decline, Nintendo remains focused on its console business, alongside its ventures into physical stores and expanding its brand with theme parks and films.

Nintendo President Shuntaro Furukawa acknowledged that while hardware and software sales remained solid for the eighth consecutive year, the company failed to meet its initial sales goals. For the period from April to December, Nintendo sold 9.54 million Switch units, bringing total sales to 150.86 million units.

The company previously announced plans to launch a successor to the popular Switch in 2025, with the unveiling scheduled for an upcoming Nintendo Direct event on April 2. The new device is expected to retain the hybrid design of its predecessor, which significantly revived Nintendo’s fortunes after the underperformance of the Wii U console.

As a result of the forecasted slowdown, Nintendo has lowered its operating profit estimate by 22.2%, bringing the expected figure to 280 billion yen ($1.8 billion) for the financial year ending in March. For the April-December period, the company saw a sharp 46.7% drop in profit, totaling 247.6 billion yen.