GameStop Keeps Taking Shots at Xbox, Vows to Keep Selling Game Pass at Old Price

What has become a brand nightmare for Microsoft has transformed into a valuable marketing moment for major retailers such as GameStop, Amazon, Walmart, Best Buy, and Target. These firms are pledging to sell monthly subscriptions for Xbox Game Pass Ultimate at the rate of $19.99, even after Microsoft recently announcing a cost adjustment to $29.99 per month.

The Retailer's Clever Tactics

GameStop, especially, is leveraging the uproar to motivate customers to purchase physical games. Following the October 1 announcement, GameStop has issued repeated taunts at Microsoft and Xbox via online platforms.

A message recalled people that their alternatives consisted of paying close to thirty dollars a month to possess no games, or investing equally to own something "forever" at GameStop. The company likewise cited news of the price increase with the quip, "Welcome to GameStop." Arguably its bravest step is starting a promotion where it promises to continue selling Ultimate at the more affordable rate.

"Xbox Game Pass is priced at just $19.99 with us," the announcement states. "You're welcome. Accessible at physical locations and online."

Key Factors

Unfortunately, securing annual access would mean purchasing a dozen of these cards, or multiple 3-month cards, which are also selling for the discounted rate right now. But doing so would still be cheaper than paying $360 annually, so it might represent good value for any Xbox fans who wish to continue their subscription just yet or subscribers who hesitate to face additional commercials.

Marketing Strategy Analysis

It's an excellent marketing strategy for GameStop, as a prudent business move gets posed as benevolence. I'm taking an educated guess, but if all major retailers are adopting identical approaches, it's possibly due to they have to dispose of the existing inventory that comes displaying the "$19.99" number. This seems like a while supplies last type of situation, and it's uncertain when the cheaper stock might be available.

Xbox's Position

Meanwhile, Xbox is engaged in crisis control. “We understand rate hikes are never fun for anybody, but we're attempting to strengthen by including extra features to these plans as well,” an Xbox spokesperson stated. “It's something we don't take lightly, and we're paying attention to responses of players and the community to attempt to deliver them with increased desired content.”

Kyle Glenn
Kyle Glenn

A tech enthusiast and business strategist with over a decade of experience in digital transformation and startup consulting.