Microsoft (MSFT) has announced plans to impose monthly time limits on its cloud gaming subscribers as the company looks to contain costs.
Until now, people who subscribed to Microsoft Game Pass got unlimited access to the company’s online Xbox video games.
However, Microsoft said that unlimited gaming is no longer financially feasible as it seeks to balance usage with costs.
Going forward, gamers will have their monthly access to Game Pass limited but will be able to pay for additional hours of gaming time beyond the initial cap.
Microsoft said the changes to its Game Pass cloud gaming subscriptions will go into effect this November.
Xbox Game Pass is a monthly video game subscription service that enables people to access a large library of games for a single price and play online against their friends and other gamers.
While Microsoft said in a statement that costs are rising for video game usage, analysts said that the company faces a finite amount of computing power as it prioritizes artificial intelligence (A.I.) models and applications.
Starting in November, a Game Pass Ultimate subscription will cost $22.99 U.S. per month and will provide gamers with 15 hours of playing time per month.
Game Pass Premium account holders will pay $14.99 U.S. a month for 10 hours of cloud-based playtime, while a Game Pass Essential pass will cost $9.99 U.S. a month for five hours.
Microsoft did not specify the fees for purchasing extra gaming hours. Gamers were quick to criticize the changes on social media, with some calling it a “cash grab.”
In recent months, Microsoft has said that it is evaluating its Xbox video game unit with a view to making it more profitable.
In July of this year, Microsoft said it would begin testing advertisements in its video games that are streamed online, a move that has also been criticized by gamers.
The Xbox unit has struggled since Microsoft bought video game maker Activision Blizzard for $68.7 billion U.S. in 2023, giving it titles such as “Call of Duty” and “World of Warcraft.”
There is some speculation among analysts that Microsoft might eventually look to sell its Xbox video game unit as it focuses more on A.I. technologies.
MSFT stock is essentially flat over the past year (up 0.42%) and trading at $510.12 U.S. per share.
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