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Xbox Live Gold changes to Game Pass Core
(yiffit.net)
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$1 extra each month is nothing for you, but $1 extra from hundreds of thousands of subscribers each month is a lot of money and is exactly the point of the upsell strategy. Make the first tier undesirable so no one will want it.
This is exactly why every fastfood place has at least 3 sizes of cups. If you have 2 sizes, small and large, nobody will buy large. Rename "large" to "medium" and add a third size, and people will buy a lot more "medium" sizes.