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 committing to sell 30-day memberships for Xbox Game Pass Ultimate at the cost of $19.99, in spite of Microsoft just revealing a price hike to $29.99 per month.
The Retailer's Clever Tactics
GameStop, especially, is capitalizing on the furor to encourage people to purchase disc-based titles. Following the October 1 announcement, GameStop has made several digs at Microsoft and Xbox via online platforms.
One post reminded people that their choices included paying close to thirty dollars a month to own nothing, or using that amount to have lasting ownership at GameStop. The brand also quoted news of the price increase with the comment, "Welcome to GameStop." Perhaps its boldest move is launching a campaign where it vows to keep selling Ultimate at the more affordable rate.
"Xbox Game Pass is still $19.99 with us," the post reads. "You're welcome. Offered at retail outlets and online."
Practical Considerations
Unfortunately, obtaining twelve months would mean purchasing a dozen of these cards, or several quarterly passes, which are also selling for the discounted rate right now. But doing so would still be cheaper than paying $360 annually, so it could be beneficial for any Xbox fans who aren't ready to cancel just yet or fans who aren't ready to handle increased advertising.
Marketing Strategy Analysis
It's a brilliant marketing strategy for GameStop, as a smart commercial decision gets posed as benevolence. I'm taking an educated guess, but if every large store are following similar practices, it's possibly due to they have to clear out the current supply that comes marked with the "$19.99" number. This seems like a while supplies last type of situation, and it's uncertain when the discounted supply might be available.
The Company's Reaction
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 paying attention to responses of players and the community to try to provide them with additional requested features.”
