Source: Xbox
What’s better than a gaming subscription? A gaming subscription that includes hardware! That’s what Microsoft is reportedly working on, says Windows Central. The new monthly subscription service is called Xbox All Access and it includes an Xbox console, Xbox Live and Game Pass. The catch – there’s a two-year commitment. After the two-year contract, subscribers will own their consoles.
According to Windows Central, for a $22 monthly subscription fee, subscribers will receive an Xbox One S, Xbox Live and an Xbox Game Pass for two years. For $35 a month, subscribers will get an Xbox One X console along with Xbox Live and the Xbox Game Pass. Regular pricing for the same products and services* in the Microsoft Store is as follows, as of August 27, 2018:
- Xbox One X 1TB console: $499.00
- Xbox One S 1TB console with starter bundle: $299.00
- Xbox Game Pass: $9.99 a month
- Xbox Live Gold: 1 month for, 3 months for $24.99, 6 months for $39.99, or 12 months for $59.99
*Other bundles and deals are available
Source: Xbox One S Starter Bundle
Though Microsoft has not confirmed the service, sources say that the service could launch in the U.S. as early as this month. The bundle will be available through the Microsoft Store, but it isn’t known if Microsoft will allow other retailers to offer the package deal.
Why would Microsoft want to go to a contract-based subscription service? The bundle is an affordable wait to attract and retain gamers who have gotten used to the subscription model and don’t want to lay out $300-$500 for a new console. With a two-year commitment locked in, Microsoft will get its money back for the console. The company will also have two full years to woo subscribers into becoming long-term customers, guaranteeing recurring revenue through the Xbox Game Pass subscribers it retains.
Xbox did not make an announcement about the new subscription service at Gamescom in Germany earlier this month, perhaps because the service is expected to initially be available in the U.S. It is not known if Xbox will roll this service out beyond the United States. Xbox did, however, announce that it has released an Xbox Game Pass app for iOS and Android.
“Browse any of the games in the Xbox Game Pass catalog, discover new titles and download them straight to your console when you’re on your mobile device,” said Will Tuttle, Xbox Wire Editor in Chief, in a blog post.
Tuttle also revealed a special deal for new members. From August 20 through August 31, new subscribers will get Xbox Game Pass for $2 and receive the second month free. This special offer is available in most countries where Game Pass is available.
Insider Take:
We love that companies like Microsoft are thinking outside the box when it comes to subscriptions, pardon the pun. Subscriptions don’t have to be one-size-fits-all. They can – and should – be shaped to meet the needs of a company’s target customers whenever possible. By thinking beyond the standard, no-commitment monthly subscription, Microsoft can put a console in the hands of a subscriber at an affordable price, in exchange for a long-term commitment. It benefits the subscription company as well as the subscriber.
