Xbox boss Phil Spencer has publicly commented on the recent announcement that Xbox first-party game prices will be increased from $60 to $70 in 2023. Raising the price of video games is inarguably a controversial topic, particularly amid crises surrounding stagnating wages, inflation, and the specter of an economic recession. Despite that, the video game industry and Xbox have found significant success in recent years, so any comment from Spencer on this subject is certain to be welcomed by fans.
Microsoft announced that it would be raising prices on all first-party Xbox game releases starting in January 2023. Highly anticipated 2023 game releases including Redfall, Starfield, and Forza Motorsport are confirmed to be priced at $69.99 instead of Xbox's current $59.99 standard pricing, as well as all first-party Xbox games going forward. Microsoft's statement on the subject listed "content, scale, and technical complexity" as justifications for the increased prices.
Spencer addressed the subject during an interview on the Second Request podcast, though he didn't add much more to the conversation than what's already been said. Phil Spencer explained, "Pricing is always something we're conscious of, and the impact it has on our customers." He goes on to say, "Given our economic realities right now, something had to give in terms of us continuing to run the business, with the increased cost basis that we had."
While the price of Xbox's first-party games is going up, Spencer believes that the platform continues to offer significant value in the current gaming environment. He points to Xbox Game Pass, which has not raised its price, as a source for playing Xbox's first-party releases without dealing with the additional cost. He also mentions the Xbox Series S console, which he says is the least-expensive console in the current generation at just $300.
Spencer also notes that Xbox did hold off on raising its first-party game prices significantly longer than other platforms, perhaps a dig at PlayStation which jumped toward the $70 price point for the PS5's launch in 2020. Xbox will have offered $60 first-party releases over two years longer, though its thin first-party release schedule may make that a less impressive achievement to hold up than Spencer would have hoped.
Xbox will be joining almost all major publishers in raising the price of its first-party games. Sony, Activision, WB, Ubisoft, Take Two, and plenty of others have already taken the step to embrace the $70 price point. Xbox did hold off longer than most, but that's unlikely to make much difference to those who will be paying $70 for Xbox Series X/S games going forward.
Source: Second Request Podcast