GameStop Holds Line on Xbox Game Pass Price, Defying Microsoft's Latest Increase

In a significant move for consumers, GameStop has announced it will not adopt Microsoft's recent, steep price increase for its popular Xbox Game Pass Ultimate subscription service. The gaming retailer confirmed it will continue to sell one-month and three-month digital codes for Game Pass Ultimate at the previous price of $19.99 and $59.99, respectively, both in its physical stores and online. This decision comes directly after Microsoft implemented a substantial 50% price hike for new subscribers on October 1, 2025, raising the monthly cost of its top-tier service from $19.99 to $29.99. The increase, which adds up to an extra $120 per year for subscribers, was met with widespread criticism from the gaming community.

windowscentral.com reported, GameStop's move is a clear strategic play to position itself as a consumer-friendly hub in an increasingly digital and expensive gaming landscape. By absorbing the cost difference, at least for now, the company aims to drive foot traffic and online sales, betting that customers coming for a discounted subscription will also purchase higher-margin products like accessories, collectibles, or used games. However, GameStop is not the only retailer holding the line on pricing. Other major retailers, including Amazon, Walmart, Target, and Best Buy, are also continuing to sell their existing stock of Game Pass Ultimate codes at the pre-hike price. This creates a window of opportunity for gamers to "stack" subscriptions, purchasing multiple codes to lock in the lower rate for up to 36 months before the new price becomes universal.

The price hike from Microsoft is part of a broader restructuring of its Game Pass offerings, which included renaming its other tiers and adding new benefits to justify the increased cost for its Ultimate plan. Microsoft stated the new $30 per month price for Ultimate reflects an expanded game catalog, new partner benefits like the inclusion of Fortnite Crew and Ubisoft+ Classics, and an upgraded cloud gaming experience. While the lower tiers, now called Game Pass Essential and Game Pass Premium, did not see a price increase, the significant jump for the Ultimate tier—the only one offering day-one access to major new releases—has dominated the conversation, pushing consumers to seek out deals from third-party sellers like GameStop.

• Background on Game Pass Pricing: Microsoft's Game Pass service has seen several pricing adjustments since its 2017 launch. The latest and most significant hike took Game Pass Ultimate from $19.99 to $29.99 per month, a 50% increase. PC Game Pass also saw a price jump from $11.99 to $16.49. This follows a previous increase in July 2024, when Ultimate went from $16.99 to $19.99. Microsoft justifies these increases by pointing to the continuous addition of content and features, including major day-one releases and partnerships.
• The Retailer's Role in Digital Sales: Third-party retailers like GameStop and Amazon purchase digital subscription codes in bulk from publishers like Microsoft at a wholesale rate. This business model gives them a degree of flexibility on the final consumer price. Often, they will continue to sell their existing inventory at the old price until they have to purchase new stock from the publisher at a higher wholesale cost. This creates a temporary, multi-tiered market where savvy consumers can find better deals than buying directly from the platform holder.
• GameStop's Strategic Pivot: This pricing decision is a key part of GameStop's ongoing effort to remain relevant in a market dominated by digital distribution. Facing declining physical game sales, the company has diversified into higher-margin categories like PC hardware and collectibles and is working to establish its stores as community hubs for gamers. Offering digital codes at a discount is a classic loss-leader strategy, designed to attract customers who may then make other, more profitable purchases.
• Economic Implications for Consumers: For gamers, the situation creates a clear financial incentive to shop around. While purchasing Game Pass Ultimate directly from Microsoft now costs $360 per year, buying codes from retailers still offering the old price can save a customer $120 annually. This has led to a surge in "subscription stacking," where users buy up to the maximum of 36 months of codes at the lower price, potentially saving over $350.
• Microsoft's Justification and Market Reaction: Microsoft attributes the price hike to the expanded value within Game Pass Ultimate, including the addition of Fortnite Crew (an $11.99 monthly value) and Ubisoft+ Classics, alongside an upgraded cloud gaming service. However, the move was met with significant backlash online, with many gamers expressing frustration over the steep 50% increase and the timing ahead of major releases like Call of Duty: Black Ops 7.
• A Widespread Retailer Response: GameStop's announcement garnered significant attention, but it is part of a broader retail trend. Major players like Amazon, Best Buy, Walmart, and Target are also continuing to sell Game Pass codes at the $19.99 price point. This indicates that most retailers are selling through their current stock before being required to adopt the new pricing structure, making this a temporary, albeit valuable, opportunity for consumers.
• The Future of Subscription Sales: This event highlights the growing tension between platform holders who need to increase revenue from their subscription services and the retailers who can use pricing as a competitive tool. As first-party subscription costs continue to rise across the industry, the role of third-party sellers as a source for discounts and deals may become even more critical for budget-conscious consumers, potentially leading to more aggressive promotions from retailers.