Earlier last week, we reported on Microsoft’s price increase for Xbox Game Pass The exact price changes varied per territory, but all regions saw revised Essential, Premium and Ultimate tiers, with the last one seeing the biggest jump to almost S$30 per month in Singapore.
This new pricing went into effect for new subscribers after its announcement, and was slated to go into effect for existing subscribers come 4 November. However, Microsoft has decided to delay the price hikes for current Game Pass users in certain territories, including Germany, Italy, Ireland, Poland and South Korea.
Subscribers in these markets reported receiving emails from Microsoft (confirmed as genuine by The Verge) that their subscriptions will remain the same price, so long as they keep their auto-renewal on. New users will still have to contend with the higher prices.
In addition, current subscribers will also get a notice 60 days in advance should the price increase affect them.
Current subscribers in certain countries will continue renewing at their existing price for now, in line with local requirements.
– Microsoft’s statement to The Verge.
The above statement makes it clear that it’s to do with local regulations. Digging deeper, there have been certain developments in those countries that might have informed Microsoft’s hesitation in implementing price increases for existing customers there.
For instance, German courts have repeatedly ruled against unilateral price increases by businesses in subscription contracts, specifically due to certain price adjustment clauses which lacked transparency (according to law firm Bird & Bird).
Additionally, Reuters reported that Poland’s consumer protection office has begun questioning the legality of unilaterally increasing subscription prices without consumer consent. And while not directly dealing with subscription fee price hikes, South Korea implemented new regulations that targeted practices such as hidden fees and complicated subscription cancellations earlier in February (per The Korea Herald).
It wouldn’t be surprising if Microsoft took these cues and withheld price increases for subscribers in these regions, but it’s not clear how long this grace period will last. In addition, big markets like the US and UK won’t be getting this privilege, and until similar emails arrive for local users, existing subscribers in Singapore are not likely to be exempted either.
Source: The Verge
