The Gaming Retailer Keeps Taking Shots at Xbox, Assures to Maintain Pricing on Game Pass at Previous Price

What has become a public relations challenge for Microsoft has transformed into a valuable marketing moment for leading stores including GameStop, Amazon, Walmart, Best Buy, and Target. These firms are pledging to sell 30-day memberships for Xbox Game Pass Ultimate at the cost of $19.99, in spite of Microsoft having declared a rate increase to $29.99 per month.

GameStop's Marketing Plays

GameStop, in particular, is taking advantage of the uproar to motivate customers to purchase physical games. Following the October 1 announcement, GameStop has made several digs at Microsoft and Xbox through digital channels.

A message recalled people that their options were paying nearly $30 a month to own nothing, or spending the same to own something "forever" at GameStop. They additionally referenced news of the cost rise with the comment, "Welcome to GameStop." Arguably its bravest step is initiating an offer where it promises to continue selling Ultimate at the lower cost.

"Xbox Game Pass is remaining at $19.99 with us," the post reads. "You're welcome. Offered at retail outlets and online."

Important Details

Frustratingly, securing annual access would mean purchasing a dozen of these cards, or multiple 3-month cards, which are similarly offered for the reduced cost right now. But taking this approach would remain more affordable than paying $360 annually, so it may be worth it for any Xbox fans who don't want to pull the plug just yet or users who aren't prepared to face additional commercials.

Marketing Strategy Analysis

It's a brilliant marketing strategy for GameStop, as a smart commercial decision gets presented as generosity. I'm taking an educated guess, but if every large store are doing the same thing, it's likely because they have to dispose of the existing inventory that comes printed with the "$19.99" number. This appears to be a while supplies last type of situation, and it's unknown for what duration the cheaper stock might be available.

Microsoft's Response

Meanwhile, Xbox faces crisis control. “We understand price increases are never fun for anybody, but we're working to enhance by adding more value to these plans as well,” an Xbox spokesperson stated. “It's something we don't take lightly, and we're listening to the feedback of players and the community to work to offer them with increased desired content.”

Nicholas Marsh
Nicholas Marsh

A tech enthusiast and business analyst passionate about sharing insights on innovation and digital transformation.