Microsoft (MSFT) stock slipped on Wednesday after the technology company announced new changes to Xbox Game Pass. The company has introduced revamped versions of the Xbox Game Pass subscription tiers that offer new benefits but also come at a higher price.
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Here’s the rundown on the new Xbox Game Pass tiers and prices:
- Xbox Game Pass Essential is the new budget tier, replacing Xbox Game Pass Core. It will continue to cost $9.99 per month but now offers over 50 titles, compared to the prior 25. Additionally, it features PC play and unlimited cloud access, a feature previously reserved for the Ultimate tier.
- Xbox Game Pass Premium has replaced the Xbox Game Pass Standard subscription and will still cost $14.99 per month. It offers more than 200 titles, as well as the same benefits available to Essential subscribers.
- Xbox Game Pass Ultimate keeps the same name but gets a new price. Microsoft has increased the monthly cost of the subscription to $29.99 from $19.99. It has justified the increased price with access to Ubisoft (UBSFT) Plus Classics, Epic Games’ Fortnite Crew, Xbox Cloud Gaming coming out of beta, and the potential to earn up to $100 per year in rewards by playing games.
This increased price for Xbox Game Pass comes roughly one month after the video game company raised prices on its Xbox consoles in the U.S.
Microsoft Stock Movement Today
Microsoft stock slipped on Wednesday as consumers reacted negatively to the price increase. This resulted in a 0.79% drop in MSFT stock. Even so, the shares were still up 22.58% year-to-date and 24.17% over the past 12 months.
Is Microsoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 33 Buy and a single Hold rating over the past three months. With that comes an average MSFT stock price target of $627.95, representing a potential 22.03% upside for the shares.
