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I cancelled too! I really wanna see what excuse Microsoft will pull out to walk back the changes.

Hit 'em where it hurts, people.

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[-] SnotFlickerman@lemmy.blahaj.zone 16 points 7 months ago* (last edited 7 months ago)

The thing about this shit is...

Microsoft, like Google, is now a user-data driven company and they have already made loss/profit ratio analysis on this long before they released the price increase. They're absolutely banking on people cancelling but making up the difference and then some from the people who stay.

For a thought experiment let's consider how many subscribers they were reported to have in Feburary: 34 million. Let's assume that everyone is paying for the highest tier to make the math easier. So current income would be 34 million user x $20 a month and thats $680 million a month. New income of 34 million users x $30 a month is $1.02 billion. The difference is $340 million a month. Let's divide that by $30 a month. That gets us about 11,333,333 users. So they can hemorrhage over 11 million users and still break even. To make sure, let's subtract 11 million users. That gives us 23 million users. 23 million users x $30 a month is $690 million a month, a cool $10 million a month above current profits.

For final context, 11 million users is roughly 32% of their entire subscriber count. They can afford to lose a third of the people subscribing and still make money.

The math doesn't bode well for us who vote with our wallets.

[-] ramble81@lemmy.zip 3 points 7 months ago

And it gets even better. Instead of up to 33% leaving, say 50% of that group convert to Premium instead of Ultimate. That isn’t any lost revenue since the price is going up to what Ultimate used to be. So that cushions their numbers even more.

[-] Rentlar@lemmy.ca 3 points 7 months ago* (last edited 7 months ago)

One could imagine that conveniently, Microsoft's online support pages and the amount of support staff were designed to only handle hundreds of thousands of cancelations at a time.

[-] ColeSloth@discuss.tchncs.de 1 points 7 months ago

Now factor in the cost savings from a lower server load and less staff to run the back end, and possibly the smaller licensing\use costs for the games available to play since less people would be accessing those games.

[-] quackerjo@lemmy.wtf 1 points 7 months ago* (last edited 7 months ago)

I'm not a licensed math surgeon, but I think your math is wildly optimistic in favor of Microsoft due to how the subscription totals are actually distributed per price tier.

I don't doubt that they did a lot of math to figure out an acceptable level of churn for this change, I just don't think it's nearly as generous and wide as you're calculating.

There probably is a very real churn limit that they're trying to avoid, and my hunch is that there exists a breaking point that could be hit with an aggressive and sustained boycott / cancellation spree, but again, I'm not a math surgeon so I could be wrong. That's just my gut feeling.

[-] Glide@lemmy.ca 14 points 7 months ago

You know, fundamentally, I don't hate Gamepass as a concept. "Netflix, but for videogames" is an idea I can get behind, as it widens the audience for something I love by lowering the bar of entry. There are plenty of people out there that benefit from being able to play a few games here and there without needing to commit hundreds of hours to $100 purchases.

But Netflix has overstepped with price hikes and ads, and I've cancelled my service with them. That Microsoft thinks it can charge some ~$40CAD a month is pure hubris. I hope they learn quickly that, at that price point, the enthusiast market will happily cancel and just buy their games outright, and the casual market will decide it's an expense they don't need.

[-] W3dd1e@lemmy.zip 9 points 7 months ago

I canceled. I don’t want the features they added. I don’t even use all the features they charge me for now. I just want to be able to try out so new games every so often. I’ll take the $30 I save and buy those same games, probably with some money leftover

[-] bblkargonaut@lemmy.world 5 points 7 months ago

It's nice they pulled this nonsense during a steam sale. Cancelled and picked up halo mcc and silksong.

[-] copd@lemmy.world 2 points 7 months ago
[-] bblkargonaut@lemmy.world 3 points 7 months ago

Impulse purchase

[-] LavaPlanet@sh.itjust.works 5 points 7 months ago

I already canceled because of the atrocities Microsoft does / is / supports.

[-] PKscope@lemmy.world 3 points 7 months ago
[-] LavaPlanet@sh.itjust.works 1 points 7 months ago

Thanks for sharing! Small wins!!

[-] doingthestuff@lemy.lol 5 points 7 months ago

Between the cost of housing and the cost of food, and the fact wages aren't that much better than they were 15 years ago - you'd think they would realize they are asking for the scraps people have left.

I've always just bought games when they're on a good sale, I've never had a game pass type thing. But maybe they just want to squeeze a bit more out of their most loyal customers and they're accepting that it is a dying model.

[-] Prox@lemmy.world 8 points 7 months ago

Once upon a time, the idea with subscriptions like this was to have customers set it and forget it. Charge them a small/reasonable amount and they'll keep giving you money forever. Giving people a reason to think about - or worse, evaluate the merits of - the monthly deposit they're giving you used to be a sin for companies.

But here we are, seeing the difference between "companies" and "corpos".

[-] AppleTea@lemmy.zip 1 points 7 months ago

...is the difference being publicly traded on the stock exchange? The only company I can think of that doesn't fall under "corpo" is Valve, and it seems to mostly be because they don't have to answer to shareholders.

[-] RunJun@lemmy.dbzer0.com 5 points 7 months ago

Just canceled my 4 year old subscription. Can’t wait to hear the complaints from my kid but Netflix is likely next.

[-] thatKamGuy@sh.itjust.works 4 points 7 months ago* (last edited 7 months ago)

The missus and I sat down about a year ago and tabulated up how much all of the various streaming subscriptions were costing us per year (it was close to $1,000 when including YouTube Premium).

We cancelled every single one, and put that money towards building a home NAS and filling that up with downloaded media. No more ads, stupidly low bitrates, or TV shows & movies disappearing because a license expired.

The server has more than paid for itself at this point, and every additional spare dollar is being put aside for our kids’ tuition.

ETA: Consider doing the same, your kid’ll likely thank you in the long run!

PS: Never too late to introduce them to all of your favourite classic games, either - though that one may be a bit harder to get them onboard 🤣

[-] RunJun@lemmy.dbzer0.com 3 points 7 months ago

I have a 16TB server and an extensive steam collection. I already explained it to him and he was fine about it.

[-] thatKamGuy@sh.itjust.works 0 points 7 months ago

Even better! What are you running on your server?

Ours is just an old QNAP I dug out of storage with 4x8TB drives in RAID5 - but am eager to try out HexOS on a proper system once I have some spare time.

[-] RunJun@lemmy.dbzer0.com 1 points 7 months ago

It’s running windows out of convenience but I’ll be swapping to Linux soon.

[-] calliope@retrolemmy.com 5 points 7 months ago

I really appreciate this, you just saved me at least $20.

Microsoft’s user experience is awful at every step in a browser. I wanted to like XBox but it’s clear why they’re losing.

[-] doctortofu@piefed.social 4 points 7 months ago

The price increase is absurd. I cancelled too, because while I do play quite a bit, this level of corporate greed is completely unjustifiable to me. If rather watch playthroughs of new games on Twitch or YouTube and then buy them a year later on sale than pay this bloody much, eff that.

[-] wesker@lemmy.sdf.org 3 points 7 months ago

EA also further buried the ability to cancel EA accounts, after the announcement they had been sold to the Saudis and Kushner.

[-] other_cat@lemmy.zip 3 points 7 months ago

Between that, this, and Disney+ cancellation page "accidentally" going down during that fiasco, this is exactly why I've switched to using only virtual cards for subscriptions. Pause/Cancel the virtual card, voila, no more subscription.

[-] Tollana1234567@lemmy.today 1 points 7 months ago

they dont want SA or kushner to hold an EMPTY bag, but i suspect they will get alot of cancellations in the future. wish they seperate westwood so a proper CNC can be revived.

[-] hydrashok@sh.itjust.works 1 points 7 months ago

Good thing I never signed up for one.

Any Steam game that requires an EA, Ubisoft, Blizzard, whatever account is a total non-starter for me. I’ve looked at some of the newer Battlefields when they’re on sale for like $2 and I still can’t be convinced. Likely never will.

Ok with me, there’s lots of other publishers out there, both independents and studios, that I’d much rather give my $2 to.

[-] etchinghillside@reddthat.com 2 points 7 months ago

Internet is being shitty on link. What is the price increasing to/from? When was the last increase?

[-] Nelots@piefed.zip 2 points 7 months ago* (last edited 7 months ago)

This link has a pretty good comparison between the new and old gamepass features/prices. The cheapest tier is actually better than it used to be, but it looks like the more expensive ones are getting bundled with shit most people won't want just so they can justify increasing the price.

There are four tiers to the gamepass: Core, Standard, PC, and Ultimate. The first two were exclusive to Xbox, the PC version was obviously exclusive to PCs, and Ultimate was available for both. All tiers aside from the PC gamepass are now being bundled with xbox's cloud gaming, with higher tiers having shorter wait times and better quality.

This is all US pricing, so take it with a grain of salt considering the OP said their prices doubled:

  1. Core, now called Essential, is a $10 tier that will now have double the games (from 25+ to 50+) and is newly available on PC as well with no price increase.
  2. The $15 Standard tier, now called Premium, is likewise not seeing a price increase and will now be available on PC. However, it looks like Call of Duty will no longer be included in this tier, which I imagine is one of the biggest sellers of gamepass.
  3. The previously $12 PC tier is increasing in price to $16.50. Looks like the only new "benefit" is it will come with Ubisoft+ classic (40+ games) now. Still exclusive to PC.
  4. Then there's the previously $20 Ultimate tier. It's price is increasing to $30 a month, and it's the one everyone's upset about. The only new benefits are cloud gaming, Ubisoft+ classic, and a Fortnite subscription.
[-] SalamenceFury@lemmy.world 2 points 7 months ago

It varies by location. But for me on brazil at least every single subscription doubled in price. PC Game Pass was 36 BRL, it is now 70. Ultimate was 60 BRL, now it's 120. I cannot justify this shit.

[-] Macaroni_ninja@lemmy.world 1 points 7 months ago* (last edited 7 months ago)

Pro financial tip: Be a patient gamer. Get the games you are interested in during sales. Fuck FOMO, subscription models and pre-orders.

[-] Gerudo@lemmy.zip 1 points 7 months ago

Turned off my recurring billing. I'll have about 3 months then it's bye bye. I have been a customer since 360, but now will probably sign up for Playstation Network for the first time.

[-] Prox@lemmy.world 1 points 7 months ago

Ehh... PSN isn't really any better. Their Game Pass competitor is a hot mess. Better to just buy games outright, especially during sales.

[-] Gerudo@lemmy.zip 1 points 7 months ago

I know it's not better, but it has a bunch of the catalog from Game Pass as well as a bunch of PS titles I've missed while being on Xbox.

[-] SoftestSapphic@lemmy.world 1 points 7 months ago* (last edited 7 months ago)

Getting users to pay extra for features that should already be included with their overpriced consoles is such a scam.

[-] Passerby6497@lemmy.world 1 points 7 months ago

It's the Microsoft way. They hide security features that should be standard behind higher subscription tiers. It's entirely bullshit.

[-] kepix@lemmy.world 1 points 7 months ago

no numbers were shown that day

[-] garretble@lemmy.world 1 points 7 months ago

Honestly, I've kinda gone back to buying physical media.

I bought DK Bananza on cart, and guess what? After I finished it, I gave it to my brother. Imagine that! Sharing a game you own? Madness.

I'm eager to pick up Ghost of Yotei from the store this afternoon, as well.

[-] zanyllama52@infosec.pub 0 points 7 months ago

I've never gone away from buying physical media, but I could understand exactly why you would want to return to it.

[-] garretble@lemmy.world 0 points 7 months ago

For me, when the Switch 1 came out it was just nice to have everything on the device and you never had to do the most heinous thing of taking a moment to put a cart into the device.

But more and more I buy one to two games a time and focus on those, so that issue is largely not a thing any more.

[-] ilinamorato@lemmy.world 1 points 7 months ago

For me, with the Switch 1, I was worried about wanting to play a game but oh no it's back at home. Happened a bunch of times with my 3DS.

But then I bought a case that had card slots in it, and that concern wasn't much of a concern anymore. Then the pandemic happened, and I never really left home anyway, which meant it mattered even less. So now I have a few digital games that are super annoying to share.

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[-] rumba@lemmy.zip 1 points 7 months ago

Knowing Microsoft, I'd like to thing that it went down like this:

Pardon me, your department isn't achieving the expected 20% annual revenue increase.

But we're just selling subscriptions to games that cost us nearly nothing. It's free money.

And you need to make more money from it, increase your subscriber count or your costs, or we'll cut your staff.

[-] Randomgal@lemmy.ca 1 points 7 months ago

Then they cut staff anyways, because why leave free money on the table?

[-] verdi@feddit.org 1 points 7 months ago

For years I've been warning whoever would listen that XboxGP, much like any other content subscription service owned by a public company would inevitably lead to a massive consumer squeeze. Fortunately it happened before MS managed to metastasise into a monopoly in gaming too. Good riddance.

[-] wetbeardhairs@lemmy.dbzer0.com 0 points 7 months ago

Now is probably not the best time to sell my xbox.... I bet the market is flooding

[-] Tollana1234567@lemmy.today 1 points 7 months ago

if costco stop selling xbox(a series) its a bad sign.

[-] sp3ctr4l@lemmy.dbzer0.com 0 points 7 months ago* (last edited 7 months ago)

... and here is yet another opportunity I have to post the same comment as I have been doing for the past 6+ months:

People still use Microsoft products?!

[-] null@lemmy.nullspace.lol 1 points 7 months ago

Nope. Nobody uses them.

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this post was submitted on 01 Oct 2025
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