Xbox Game Pass Ultimate once stood as the best value in gaming. However, with its recent price hike, the service has lost some of its former appeal. While the monthly cost of $20 USD may not seem steep at first, the lack of a more affordable annual subscription plan is the real issue. In comparison, PlayStation Plus Premium, Sony’s top-tier subscription, offers a monthly rate of $18, which is only slightly cheaper than Game Pass. However, PlayStation Plus still includes annual pricing options, giving subscribers a chance to save money over the long run and alleviating the pressure to get the most out of the service each month.
Looking ahead to 2025, Game Pass is set to include exciting titles like Obsidian’s Avowed, which is launching in February. But for genre fans, Avowed may be finished in a month, leaving nearly a full year to justify the $20 monthly cost. A PlayStation Plus subscriber, on the other hand, can make the most of their service for less money by locking into an annual plan during one of the regular promotional periods. This results in a lower effective monthly cost and allows for a broader perspective on the service's value, which can be difficult to achieve with a subscription that demands monthly reassessments.
The Scrutiny of Monthly Rates
The major issue with Game Pass Ultimate’s pricing model is that it requires monthly re-evaluation, putting the service under constant scrutiny. Features like the ability to stream one's library, including games that are no longer on the service, are nice perks, but they don't fully offset the high price. When Game Pass Ultimate was priced more competitively, such as during the period when fans could stack a year of Xbox Live Gold for $60 and convert it to Game Pass Ultimate for just $1, these smaller features were more well-received. But now, at $20 a month, most gaming fans can’t ignore the cost, which creates ongoing pressure for Game Pass to prove its worth every month.
While Game Pass will include a strong lineup of 2025 titles, the absence of an annual plan encourages subscribers to constantly question the service’s immediate value. Monthly billing incentivizes frequent cancellations, especially when compared to streaming services in other industries. For instance, while streaming platforms like Amazon Luna and Peacock may offer low-priced or discounted annual plans, services that charge monthly fees invite subscribers to re-evaluate their subscriptions regularly. Game Pass, by charging $20 monthly, faces similar scrutiny.
Why PlayStation Plus Annual Rates Offer More Value
Although PlayStation Plus Premium’s $18 monthly rate might appear comparable to Game Pass, it is important to consider that PS Plus also offers discounted annual rates, a significant advantage over Game Pass. For gamers who own multiple consoles, locking into a year of PS Plus during a sale offers a better overall value. On the other hand, adding a month of Game Pass Ultimate on top of a PlayStation Plus subscription makes it a harder sell, as gaming time becomes a more important factor.
Even when PS Plus has lean months, its annual pricing lets subscribers explore its deep back catalog of classic PlayStation titles. For Game Pass subscribers, however, even original Xbox titles can’t fully offset the sting of a month with fewer new additions. The result is often an impulse to cancel subscriptions, rather than enjoying the service as a year-round benefit.
The Need for Annual Game Pass Subscriptions
When comparing Game Pass and PlayStation Plus, PlayStation Plus clearly offers better value with its pricing options. Both services feature impressive back catalogs, but PlayStation’s is more extensive, while Game Pass shines with new titles and day-one releases. The real issue, however, lies in Game Pass’s higher monthly price. To stay competitive, Game Pass needs to offer a similar annual pricing structure to PlayStation Plus. This would make it a more attractive option for those who prefer to pay upfront and save money over the course of the year.
Why a Discounted Annual Plan Could Be a Win-Win for Both Consumers and Microsoft
Looking ahead to 2025, Xbox may outshine PlayStation in terms of exclusive titles, but PlayStation Plus continues to outperform Game Pass in terms of consumer value. Many fans still look back fondly at the days when Game Pass and PlayStation Now were priced more affordably. Introducing an annual plan for Game Pass would provide both a win for Xbox and for consumers. While the price would be lower, the company would secure guaranteed revenue, unlike with monthly subscriptions, where cancellations remain a risk.

Why Xbox Game Pass Needs a Discounted Annual Subscription to Compete with PlayStation PlusAt the current rate of $20 per month, many subscribers will likely only commit for a month at a time, bingeing through a few games before canceling. This creates a stressful experience for fans and is less profitable for Microsoft in the long run. A yearly subscription would reduce this pressure, allowing subscribers to feel they’ve made a sound investment for the year, without the need to make monthly calculations. The return of annual subscriptions to Game Pass is necessary for its long-term success.
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