GameStop Keeps Taking Pokes at Xbox, Promises to Continue Offering Game Pass at Original Price

What has emerged as a marketing headache for the Xbox creator has transformed into a valuable marketing moment for major retailers such as GameStop, Amazon, Walmart, Best Buy, and Target. These businesses are pledging to sell monthly subscriptions for Xbox Game Pass Ultimate at the cost of $19.99, in spite of Microsoft recently announcing a rate increase to $29.99 per month.

The Retailer's Clever Tactics

GameStop, in particular, is capitalizing on the controversy to encourage people to purchase physical games. After the October 1 announcement, GameStop has taken multiple jabs at Microsoft and Xbox on social media.

A message recalled people that their options were paying around 30 bucks a month to possess no games, or investing equally to own something "forever" at GameStop. The brand also quoted news of the cost rise with the remark, "Welcome to GameStop." Perhaps its boldest move is initiating an offer where it assures it will maintain selling Ultimate at the cheaper price point.

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

Practical Considerations

Annoyingly, obtaining twelve months would mean buying twelve of these cards, or multiple 3-month cards, which are also selling for the lower price point right now. But taking this approach would continue to cost less than paying $360 annually, so it may be worth it for any Xbox fans who wish to continue their subscription just yet or subscribers who hesitate to handle increased advertising.

Marketing Strategy Analysis

It's a great marketing strategy for GameStop, as a smart commercial decision gets presented as generosity. I'm taking an educated guess, but if each prominent seller are adopting identical approaches, it's likely because they have to clear out the old stock that comes displaying the "$19.99" number. This appears to be a while supplies last type of situation, and it's uncertain when the cheaper stock might be available.

Xbox's Position

Meanwhile, Xbox finds itself in crisis control. “We understand cost adjustments are always difficult for anybody, but we're trying to reinforce by providing additional benefits to these plans as well,” a Microsoft representative stated. “It's something we approach carefully, and we're hearing community input of players and the community to try to provide them with additional requested features.”

Caitlin Serrano
Caitlin Serrano

A seasoned business analyst with over a decade of experience in market research and corporate strategy.