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Microsoft is waiting for Sony to reveal PS5 price to undercut it with Xbox Series X, say Michael Pachter and Peter Moore

yurinka

Member
Pachter is right only about 1% of the time so this is very unlikely.
Sony gaming division dominates MS gaming division in all fronts, so if someone can wait, and even don't give a fuck about what the other one does, it's Sony.

The one who is desperate almost giving away their new AAA games, and making their subs $1 trying to get some attention/userbase is MS. The one who reacted what the other one did by copying many of their things like Remote Play, PS Now, Cross Buy, increasing the number of 1st party studios and so on is MS.

MS is the one reacting to Sony's moves, and I'm pretty sure that the next one will be MS joining the VR wagon in the 2nd or 3rd year of Series X.

Sony has a lead so big that they can even sell their console $100 more expensive than Series X and still dominate the generation.
 

Azelover

Titanic was called the Ship of Dreams, and it was. It really was.
Ah, Peter Moore! That I can respect!

As for Michael Pachter, whatever dude..
 

Major_Key

perm warning for starting troll/bait threads
Sony gaming division dominates MS gaming division in all fronts, so if someone can wait, and even don't give a fuck about what the other one does, it's Sony.

The one who is desperate almost giving away their new AAA games, and making their subs $1 trying to get some attention/userbase is MS. The one who reacted what the other one did by copying many of their things like Remote Play, PS Now, Cross Buy, increasing the number of 1st party studios and so on is MS.

MS is the one reacting to Sony's moves, and I'm pretty sure that the next one will be MS joining the VR wagon in the 2nd or 3rd year of Series X.

Sony has a lead so big that they can even sell their console $100 more expensive than Series X and still dominate the generation.

MS actually lead the future of business model dev of gaming.

Like they did with xbox 360 with Indies,Xbox live etc...

Xbox is not just console but a Platform and u will see Sony does the same thing in the future.

Microsoft have been ready for VR for a long time, it's just that it finds the technology not mature. He is one of the leading gafam on VR / MR.

If they can put Hololens 2 tech on VR headset at an affordable price it's a game changer. They are even currently on a virtual MMO, they bought AltspaceVR and many world class dev joined Mixed reality studio.
 
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Andodalf

Banned
MS actually lead the future of business model dev of gaming.

Like they did with xbox 360 with Indies,Xbox live etc...

Xbox is not just console but a Platform and u will see Sony does the same thing in the future.

Microsoft have been ready for VR for a long time, it's just that it finds the technology not mature. He is one of the leading gafam on VR / MR.

If they can put Hololens 2 tech on VR headset at an affordable price it's a game changer. They are even currently on a virtual MMO, they bought AltspaceVR and many world class dev joined Mixed reality studio.

Lets not forgetting getting traditional PC devs like Bethesda and BioWare to enter the console space. Who knows what console gaming looks like if the OG Xbox never happens
 

Major_Key

perm warning for starting troll/bait threads
The Game Pass figures in future years will increase at the speed of light now that they reach 10M subscribers.

Analysts & Figures show that when a service reaches 10M subscribers, growth afterwards becomes high.

And for MS they reached this figure at the right time because they are at the dawn of a next gen with an entry-level next gen console. and the most player choice strategy.
 

Major_Key

perm warning for starting troll/bait threads
Lets not forgetting getting traditional PC devs like Bethesda and BioWare to enter the console space. Who knows what console gaming looks like if the OG Xbox never happens

Yes and Halo & Gears, have set a standard on their respective genre
 

12Dannu123

Member
While MS can afford to undercut on price on a console, will they do it though is another question, But one area where they are willing to undermine Sony is Game Pass.

The recent Samsung Access for TV promotion gives 8 Months worth of free Game Pass.

Imagine that extending to all Samsung devices. Where you purchase a Samsung smartphone you get 8 months of Game Pass along with it. How on earth can Sony compete with that?


I think Sony will continue being clear leader on consoles sold, games sold (adding PC for MS), game service subscriptions, game streaming (this include with clients in all platforms like mobile/PC/console), VR and their overall gaming divisions.

Regarding game streaming, until now Sony has been limited to a few countries, to a few devices and has lower quality codec and resolution than the other ones because it's the older one. They announced that will increase resolution, compression and will aim a global audience and move to all devices. I expect both MS and Sony to be present in all countries and devices this generation, so will be tied here. Sony will use Azure's cloud and datacenters, so will also be tied here.

Then we have the catalog and business model: Sony already has over 700 games there and we don't know how many games you'll be able to stream from the MS servers with the xCloud subscription. We also have to see how the xCloud business model and pricing. We already know Sony's business model but in the powerpoint where they stated future PS Now plans, it wasn't very clear but they also hinted that in next gen, in addition to purchase digital and retail games, you'd be able to get them for/through streaming. It wasn't pretty clear how, if in a separated purchase or if you purchased them on digital or retail you'd also get it on PS Now.

So as of now, I don't see any point where MS has or can take a lead in streaming.

Xbox has already confirmed that XCloud will support Game Pass , that's 10 Million subscribers already and that you'll be able to stream your purchased games. That's coming this year, none of the points you raised has said anything about PSNow supporting digitally purchased games soon.

Like I say What advantage does Sony have over Microsoft? Other than consoles and 1st party, not much else. Consoles have nothing to do with game streaming and gaining subscribers via consoles only cannibalises the PS platform market. The fact is Sony hardware is irrelevant outside of Consoles and they struggled to forge partnerships with device makers to promote PSNow. MS already works with Device makers. ISPs, carriers in promoting Microsoft services and already along with Google and Amazon have a significant internet presence.

Let me ask you this question. Where has Sony worked with any other device maker, carrier to promote PSNow? Other than the abandoned partnership with Samsung, nobody else sticks out.

Console fanboyism often makes people forget that Sony and Microsoft are not even on the same league, regardless of which exclusives and platforms we hobbyists prefer. Microsoft is one of the world's three most valuable companies by market cap, and it's sitting on more than $136 billion in cash - I'm not talking about assets, but cash. Microsoft is a trillion-dollar cap company, with vast and diversified revenue streams. Sony's market cap doesn't even reach 100B. We're comparing a child to a 30 story building.

Of course MSFT can undercut Sony in price. Easily. Sony cannot compete on that field at all.

I agree, while MS can do it, will they though is a different question.
 
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Komatsu

Member
Console fanboyism often makes people forget that Sony and Microsoft are not even on the same league, regardless of which exclusives and platforms we hobbyists prefer. Microsoft is one of the world's three most valuable companies by market cap, and it's sitting on more than $136 billion in cash - I'm not talking about assets, but cash. Microsoft is a trillion-dollar cap company, with vast and diversified revenue streams. Sony's market cap doesn't even reach 100B. We're comparing a child to a 30 story building.

Of course MSFT can undercut Sony in price. Easily. Sony cannot compete on that field at all.
 

NoviDon

Member
If the console is offering an next generation leap and compelling game experiences that aren't available elsewhere then there is no need to undercut a competitor. Because you would be confident in the value your bringing to the table and your ability to attract an audience. Undercutting to me sends the message that "I'm not sure if my product is going to have the same perceived value as my competitor, so im going to drop the value beneath them to have a fighting chance".
 

Andodalf

Banned
If the console is offering an next generation leap and compelling game experiences that aren't available elsewhere then there is no need to undercut a competitor. Because you would be confident in the value your bringing to the table and your ability to attract an audience. Undercutting to me sends the message that "I'm not sure if my product is going to have the same perceived value as my competitor, so im going to drop the value beneath them to have a fighting chance".

Yeah that’s why I didn’t buy the PS4. it being cheaper was a huge red flag.
 

Self

Member
im sure the people who bought the 3DO felt the same way

You have no idea boi... Stop spreading bs. The 3DO was worth every penny:

The best Fifa Soccer
Need for Speed
Wing Commander 3

and, and, and.. anyways, I could go on and on! :messenger_grinning_sweat:
 

turtlepowa

Banned
PS5: $599
XSX: $499
I think with new acquired studios MS will actually have better exclusive games nextgen.
I don't think MS will have better rated games. MS is going more for AA than AAA and reviewers just love Netflix 3rd person action adventures. But i am sure that MS will deliver more diversity in genres.
 

oagboghi2

Member
I work for a fortune 50 company and the amount of hoops we have to jump through to do ANYTHING on this level. And people think they just drop it an hour before they sell it
Companies routinely keep track of how their competition is pricing their goods. It's not an extreme idea that one company is waiting to do something first.

Nintendo, MS and Sony have contingency plans for any scenario
 
Console fanboyism often makes people forget that Sony and Microsoft are not even on the same league, regardless of which exclusives and platforms we hobbyists prefer. Microsoft is one of the world's three most valuable companies by market cap, and it's sitting on more than $136 billion in cash - I'm not talking about assets, but cash. Microsoft is a trillion-dollar cap company, with vast and diversified revenue streams. Sony's market cap doesn't even reach 100B. We're comparing a child to a 30 story building.

Of course MSFT can undercut Sony in price. Easily. Sony cannot compete on that field at all.
So what happened in the last three gaming generations? By your argument they should have released their torrent of cash sometime in the last decade. What made you think they will do so NOW?
 

Frederic

Banned
I don't think MS will have better rated games. MS is going more for AA than AAA and reviewers just love Netflix 3rd person action adventures. But i am sure that MS will deliver more diversity in genres.

I don’t think so, according to metacritic:


Xbox Games Studios is at #7 for best rated games by metacritic
Sony is not even in the top 20.


So, it’s safe to say that there is a trend.
 

fermcr

Member
LOL. Both companies are waiting for the other to announce the price first...
I think Sony will wait longer...
 

Ellery

Member
Would be impressive if the XSX was cheaper than the PS5 given that I'd estimate the XSX BOM to be higher.

The PS5 is going to have other things going for it like the innovative controller, hyperspeed SSD, exclusive games from some of the most talented developers in the world,
but Sony wants the casual gamers, who spend a lot of money on annual games and digital services/microtransactions/DLC/avatars/emotes/skins/cosmetics.
Price point is probably the single most important factor (for the casual gamers at least which are the majority. inb4 gaming forum enthusiast tell us for the 24026th time that they would love to have a 1200$ 20 TF Playstation 5. Yes we have heard it. No you are never going to get it) and I genuinely hope Sony has learned from the PS3, which I think they did.
 

turtlepowa

Banned
I don’t think so, according to metacritic:


Xbox Games Studios is at #7 for best rated games by metacritic
Sony is not even in the top 20.


So, it’s safe to say that there is a trend.
But that's only 1 year, take all 7 years together.
 

12Dannu123

Member
Would be impressive if the XSX was cheaper than the PS5 given that I'd estimate the XSX BOM to be higher.

The PS5 is going to have other things going for it like the innovative controller, hyperspeed SSD, exclusive games from some of the most talented developers in the world,
but Sony wants the casual gamers, who spend a lot of money on annual games and digital services/microtransactions/DLC/avatars/emotes/skins/cosmetics.
Price point is probably the single most important factor (for the casual gamers at least which are the majority. inb4 gaming forum enthusiast tell us for the 24026th time that they would love to have a 1200$ 20 TF Playstation 5. Yes we have heard it. No you are never going to get it) and I genuinely hope Sony has learned from the PS3, which I think they did.

The casual gamers are those who are very price-sensitive and will buy what has the most value. Currently right now rumoured $300 Xbox Series S with Game Pass has better overall value.
 

Ellery

Member
The casual gamers are those who are very price-sensitive and will buy what has the most value. Currently right now rumoured $300 Xbox Series S with Game Pass has better overall value.

If the XSX is $300 I am going to buy the entire stack, salvage it and sell the parts for a much higher total. :messenger_blowing_kiss:
 
Console fanboyism often makes people forget that Sony and Microsoft are not even on the same league, regardless of which exclusives and platforms we hobbyists prefer. Microsoft is one of the world's three most valuable companies by market cap, and it's sitting on more than $136 billion in cash - I'm not talking about assets, but cash. Microsoft is a trillion-dollar cap company, with vast and diversified revenue streams. Sony's market cap doesn't even reach 100B. We're comparing a child to a 30 story building.

Of course MSFT can undercut Sony in price. Easily. Sony cannot compete on that field at all.

Technically they can, but that doesnt mean they will. Sony as a whole are dependent on profit from the PlayStation division, whereas Microsoft are not with Xbox. So it’s much more feesible for Xbox to operate at break even for x years if they feel it has long term benefits.

Its a balancing act of risk / reward. Nowadays gaming at MS has a seat at the big table, instead of being under the foot of the Windows division. So they certainly have more freedom now to make big financial decisions. But I don’t see them taking any more than a 50 buck loss on the price of a console. And that’s probably Sony’s max too. Otherwise it’s into billions of losses right out of the gate, that’s hard to justify no matter who you are.
 

yurinka

Member
Xbox has already confirmed that XCloud will support Game Pass , that's 10 Million subscribers already and that you'll be able to stream your purchased games. That's coming this year, none of the points you raised has said anything about PSNow supporting digitally purchased games soon.
As I remember they didn't say that xCloud was going to be free for all Game Pass subscribers, instead they said that you'd be able to stream your Game Pass games. But weren't clear if in the "Remote Play" part of xCloud (using your console as server) or if you pay the xCloud subscription on top of the GamePass subscription you'd be able to play them on streaming, or if only paying the xCloud subscription it will feature a number of games where the 100+ ones from Game Pass would be a part of them.

In the Sony powerpoint for investors where did talk about plans for the future, in a slide there was a picture saying that in the past games only were purchased on retail, in the present were bought digitally or in retail, and for next gen there would be a 3rd option that would be for streaming. But didn't offer additional details and I only saw the powerpoint, didn't listen the presentation.

Like I say What advantage does Sony have over Microsoft? Other than consoles and 1st party, not much else.
Basically Sony dominates MS on every gaming market portion where they compete:
  • Sony's gaming division has way more revenue and profits than the MS gaming division
  • Sony has more than 2X the console hardware userbase, it's the market leader in userbase
  • Sony sells more games (including 3rd) for their consoles, it's the market leader in revenue
  • Sony sells more current gen exclusive games than MS, not counting Nintendo it's the market leader in exclusives
  • Sony has more users in game subscriptions (Plus+Now vs Gold+Pass), it's the market leader
  • Sony has more revenue in game subscriptions (Plus+Now vs Gold+Pass), it's the market leader
  • Sony is the market leader in game streaming, MS still didn't release their service
  • Sony is the most experienced in game streaming
  • Sony has the biggest current library (700+ games) in a game subscription service, MS as of now has zero
  • Sony is the (premium, non-mobile) VR market leader and the most experienced one. MS still didn't debut on VR
Consoles have nothing to do with game streaming and gaining subscribers via consoles only cannibalises the PS platform market. The fact is Sony hardware is irrelevant outside of Consoles and they struggled to forge partnerships with device makers to promote PSNow. MS already works with Device makers. ISPs, carriers in promoting Microsoft services and already along with Google and Amazon have a significant internet presence.

Let me ask you this question. Where has Sony worked with any other device maker, carrier to promote PSNow? Other than the abandoned partnership with Samsung, nobody else sticks out.
Consoles have to do with game streaming because the streamed games are console games so the game streaming users are console gaming fans even if they don't own a particular console. Sony has a bigger console userbase, game services userbase, and next gen annoucements generated more attention on social media. So Sony has the lead/easier job in marketing game streaming service.

As of now PS Now is available on PS and PC, so doesn't make sense to promote it with anyone else. They mentioned for their next gen plans to release PS Now on Android devices (which includes mobile, tablets, TVs etc), as they started to do with Remote Play recently.

xCloud still has not been released, so they don't promote it.

In fact, MS and Sony have their own giant marketing teams and don't need anyone else to promote their own stuff. And less with device makers, carriers or ISPs because they don't promote or sell game services.
 
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wipeout364

Member
I think they will launch at 500 US dollars. I would be very surprised if it was lower due to all the tech they are stuffing into the boxes. There may be a little variation but I think to go higher would be concerning for consumers. I think the video game market is such that at launch and for the first 12 months they will likely be supply constrained especially with COVID19 so they could actually price them higher and they would sell but they would worry about being seen as anti consumer.

No way there is a pack in. However I would not be surprised to see 3 months of LIVE/Gamepass or PS Plus and PSnow.
 

FStubbs

Member
Would be impressive if the XSX was cheaper than the PS5 given that I'd estimate the XSX BOM to be higher.

The PS5 is going to have other things going for it like the innovative controller, hyperspeed SSD, exclusive games from some of the most talented developers in the world,
but Sony wants the casual gamers, who spend a lot of money on annual games and digital services/microtransactions/DLC/avatars/emotes/skins/cosmetics.
Price point is probably the single most important factor (for the casual gamers at least which are the majority. inb4 gaming forum enthusiast tell us for the 24026th time that they would love to have a 1200$ 20 TF Playstation 5. Yes we have heard it. No you are never going to get it) and I genuinely hope Sony has learned from the PS3, which I think they did.

The PS4 was cheaper than Xbox One at launch despite being far more powerful.

The magic SSD in the PS5 might drive up the price.
 

kuncol02

Banned
  • Sony has the biggest current library (700+ games) in a game subscription service, MS as of now has zero
  • Sony is the (premium, non-mobile) VR market leader and the most experienced one. MS still didn't debut on VR
Are you ok? Did you had stroke or something? PSVR is so far from "premium VR", that I have problem calling it even true VR. They sell it for ~200 dolars with set of games and no one wants it. All other VR headset are sold out in few minutes after new stock is added in shops.
 

Vawn

Banned
Console fanboyism often makes people forget that Sony and Microsoft are not even on the same league, regardless of which exclusives and platforms we hobbyists prefer. Microsoft is one of the world's three most valuable companies by market cap, and it's sitting on more than $136 billion in cash - I'm not talking about assets, but cash. Microsoft is a trillion-dollar cap company, with vast and diversified revenue streams. Sony's market cap doesn't even reach 100B. We're comparing a child to a 30 story building.

Of course MSFT can undercut Sony in price. Easily. Sony cannot compete on that field at all.

Oh, so the exact same argument as the last 20 years about why Xbox should be more successful than PlayStation. None of these "my daddy is richer" arguments have ever worked out for Xbox.

Why? Because PlayStation is MUCH more important to Sony than Xbox is to Microsoft. Microsoft is not willing to lose millions or billions on Xbox in order to surpass PlayStation in players or quality of games. The harsh truth is video games are not a main concern of Microsoft.

If you're letting me go back in time and buy stock in one of these companies before they became huge, I'll take Microsoft. If you're asking me which game platform will continue to be most successful, I'll take PlayStation.
 
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2019 was a very light year for Sony publishing, also given days gone reviews vs customer experiences i would say this is skewed. Death Stranding was polarizing as well and those two games were the only major AAA releases last year.

Neither Bend Studios or Kojima Productions are in the upper echelon of PS Studios, but it does seem that 2019 was a decent year for XB. I wouldn't take that one year and extrapolate under in circumstances though, that is until you can claim to see a trend.
 

Frederic

Banned
Oh, so the exact same argument as the last 20 years about why Xbox should be more successful than PlayStation. None of these "my daddy is richer" arguments have ever worked out for Xbox.

Why? Because PlayStation is MUCH more important to Sony than Xbox is to Microsoft. Microsoft is not willing to lose millions or billions on Xbox in order to surpass PlayStation in players or quality of games.

The harsh truth is video games are not a main concern of Microsoft.

not really. Things are changing this gen.
First time ever subscription gaming is a reality, cloud gaming etc.
MS has a HUGE advantage here, thanks to azure.
Sony even PAYS MS to use azure.
 

Vawn

Banned
not really. Things are changing this gen.
First time ever subscription gaming is a reality, cloud gaming etc.
MS has a HUGE advantage here, thanks to azure.
Sony even PAYS MS to use azure.

Dallas Cowboys fans and Xbox fans over the last 20 years - THIS time will be different.

The fact that Microsoft supports PlayStation with their cloud servers proves my point. Microsoft (not Xbox) cares more about selling their computer technology than Xbox having advantages over the competition.
 

TLZ

Banned
not really. Things are changing this gen.
First time ever subscription gaming is a reality, cloud gaming etc.
MS has a HUGE advantage here, thanks to azure.
Sony even PAYS MS to use azure.
Azure is only servers. Servers don't make games. How's that a HUGE advantage?

Show us the games.
 

Gavon West

Spread's Cheeks for Intrusive Ads
I’m expecting $499 for ps5. But wouldn’t be surprised if it’s $399. The first year or so of losses should be negated by ps4 profit.
Also it would be wise to charge 499 as phones are selling at 1100 like hot cakes every year. The iPad is like $430 with the pencil. Consoles are really cheap compared to other pieces of tech.
Sony better not come with a $499 price tag. Im expecting them to come in around $450 or $400. I know alot of people say that Sony can do that and get away with it, but there's a stark difference between talking about it and seeing the actual price for a product thats the same price as a stronger, more powerful product.
 

turtlepowa

Banned
Azure is only servers. Servers don't make games. How's that a HUGE advantage?

Show us the games.
Streaming is becoming more and more important. That's where the money lies in the future not in some (timesd) exclusive 3rd person action adventure. I'm sure Sony will sell more consoles, but i'm not sure Sony makes more money than MS with gaming in the next 10 years.
 

yurinka

Member
Azure is only servers. Servers don't make games. How's that a HUGE advantage?
Azure isn't even the servers. It's the cloud where servers are uploaded. They can even move the game servers to another cloud if they want.

And on top of that, if both MS and Sony have their server clouds on Azure there won't be a lead related to possible improvements related to the cloud or amount of datacenters that the cloud may have.

And well, Azure isn't even the best or cheaper.

Streaming is becoming more and more important. That's where the money lies in the future not in some (timesd) exclusive 3rd person action adventure. I'm sure Sony will sell more consoles, but i'm not sure Sony makes more money than MS with gaming in the next 10 years.
Sony will also use Azure for PS Now. So MS even won't have a lead because of Azure.

PS Now has 6 years of experience, 2+ million subscribers and over 700 games. Sony dominates the game streaming market, like any other market where they are, even if they didn't put much effort on it, and mentioned to have plans to push it in the near future. xCloud doesn't exist right now and we don't know exactly how it's going to work in terms of business model, catalog and so on, so it woud be as "successful" as Stadia.

Sony better not come with a $499 price tag. Im expecting them to come in around $450 or $400. I know alot of people say that Sony can do that and get away with it, but there's a stark difference between talking about it and seeing the actual price for a product thats the same price as a stronger, more powerful product.
Looking at their specs, selling both consoles at $499 it would even be to sell them at a loss. Sony is super successful in all fronts and has an insane installbase, so they can afford that price. They are still selling PS4 base and Pro at somewhere between $300 and $350 and selling well, and during the first months their consoles will be sold out pretty fast and won't be able to ship a ton of them. So it won't be an issue for them to sell it a bit expensive.
 
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turtlepowa

Banned
Azure isn't even the servers. It's the cloud where servers are uploaded. They can even move the game servers to another cloud if they want.

And on top of that, if both MS and Sony have their server clouds on Azure there won't be a lead related to possible improvements related to the cloud or amount of datacenters that the cloud may have.

And well, Azure isn't even the best or cheaper.


Sony will also use Azure for PS Now. So MS even won't have a lead because of Azure.

PS Now has 6 years of experience, 2+ million subscribers and over 700 games. Sony dominates the game streaming market, like any other market where they are, even if they didn't put much effort on it, and mentioned to have plans to push it in the near future. xCloud doesn't exist right now and we don't know exactly how it's going to work in terms of business model, catalog and so on, so it woud be as "successful" as Stadia.
I am talking about money not technical advance and MS will get money for PS Now. Also MS has 10 million subscribers right now. Yeah yeah i know, the all paid only 1 buck for 12 months and the all will cancel the subsription, when they have to pay more than that.
 

yurinka

Member
I am talking about money not technical advance and MS will get money for PS Now. Also MS has 10 million subscribers right now. Yeah yeah i know, the all paid only 1 buck for 12 months and the all will cancel the subsription, when they have to pay more than that.
In addition to the $1 thing, Game Pass isn't a game streaming service. They are not comparable. xClout will be Microsoft's streaming service, not Game Pass. And we don't know how much is going to cost the xCloud subscription and how many games is going to feature, but we know that at least is going to feature the Game Pass ones.
 
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turtlepowa

Banned
In addition to the $1 thing, Game Pass isn't a game streaming service. They are not comparable. xClout will be Microsoft's streaming service, not Game Pass. And we don't know how much is going to cost the xCloud subscription and how many games is going to feature, but we know that at least is going to feature the Game Pass ones.
It will be included in Game Pass Ultimate which most people will subscripe anyways since the price is a no brainer. Or maybe it's even included in the normal Game Pass. Not sure right now.

Edit: Seems to be also normal Game Pass:
 
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