Xbox appears to be adding a controversial new payment method for gamers to purchase and play games on its platform, one that could easily lead to debt if not used carefully. As spotted by Better xCloud on X, the Xbox website has been updated to include 'buy now, pay later' purchase options, specifically referencing PayPal and Klarna, both known for their 'pay in three' services.
New Payment Options on Xbox
'Pay in three' services have been available for several years, allowing shoppers to spread the cost of purchases over three monthly installments rather than one large upfront payment. While convenient, these services can be risky if not monitored closely, as monthly payments can accumulate to unaffordable levels.
Klarna and PayPal are accepted at many major UK retailers, but no console platform has yet integrated this functionality directly into its digital storefront. This would enable gamers to pay for digital games in three smaller payments, with potential future expansion to consoles and accessories.
The inclusion of this scheme aligns with recent statements from Xbox CEO Asha Sharma regarding keeping gaming affordable. Speaking to Fortune earlier this month, Sharma said: 'I think we've reached a point where it will be hard to imagine that mass audiences can afford thousands of dollars to spend on a console generation. I think we'll start to see radically different business models that we never expected start to come into orbit later this year.'
Implications for Future Pricing
This suggests that the next Xbox console, Project Helix, could be significantly more expensive than the current generation. Additionally, rumors indicate that games themselves might become pricier, with GTA 6 reportedly priced close to $100. While Xbox has not officially announced the feature, its website backend suggests it is coming soon.
Why Are Klarna and PayPal on Xbox Controversial?
Klarna and PayPal 'pay in three' services remain controversial for several reasons. They are considered short-term credit loans that can negatively impact credit scores if payments are missed. Because these schemes are often used for smaller purchases, it is easy for shoppers to accumulate debt by adding multiple monthly splits, leading to unaffordable payments.
Reactions on social media have been critical. One reply on X stated: 'Great way for gamers to rack up debt they can’t pay.' Another added: 'If you buy games with Klarna you have worse problems than not being able to afford a game.' There is also debate over whether splitting payments for digital purchases is worthwhile, as digital games are only licenses that can be revoked.
Microsoft has been proactive in preserving backwards compatibility, with most Xbox 360 marketplace games still playable on Xbox Series consoles. However, digital purchases remain available only as long as Microsoft maintains its servers. In contrast, physical items can be sold to recoup costs if payments become unmanageable.
Would you consider buying a digital game with a 'buy now pay later' scheme?
