In the live stream, both Malte and Yannis talked about the recent months of Shadow and how difficult it has been for both the team and Shadow users. With the recent bankruptcy finally finished, Shadow is looking towards the future.
With that, Malte and Yannis dropped some news regarding Shadow.
No more tiers; increased pricing
Recently, Shadow removed the Ultra and Infinite tiers, downgrading everyone to the Boost tier.
In this Shadow News, they have announced that there will be no more "tiers," and Shadow will go back to only offering one set of hardware.
Shadow will start by increasing the price of the current hardware from $14.99 to $29.99 in June, and they will be removing the option to sign up for the yearly commitment.
Shadow will no longer look into offering multiple tiers and instead look at upgrading the current hardware that they own. However, at this time, they have not made any announcements as to when the current hardware will be upgraded.
Why increase the price and not offer other tiers?
The price increase is to help Shadow become a sustainable business. At $14.99 a month, it was not enough for Shadow to be profitable and sustainable. With the price increase to $29.99, Shadow is looking to increase profits, invest in the business, and continue to evolve and upgrade.
A price increase is necessary for the service to survive, and even though it may not be ideal right now, the increased price will allow Shadow to grow and push forward.
As for why Shadow will no longer offer different tiers, it is because a single-tier selection will be more simple. One set of hardware is less work for Shadow and will allow them to focus resources that would have been spent on maintaining multiple hardware tiers into other portions of the business.
Offering one set of hardware will also make it easier for the consumer. You no longer need to figure out which tier is best for you. If there is only one option, it cuts down decision-making on your end.
These changes are necessary. However, I find it a little upsetting that the hardware they will be offering is that of the Shadow Boost tier, which is a tad bit old.
But, from a business standpoint, it makes perfect sense. Offer what you already own. Make money off of it. Use that money to grow and offer better solutions in the future.
Still, with the GPU shortages and increased scalper pricing of GPUs, $29.99 a month for the hardware you get with Shadow is not too bad.
However, the price increase means that Shadow will no longer be a complete replacement for building a PC, and instead, be more on-par, in terms of cost, with building a PC. Right now, it may be the better option, but once the GPU costs come down closer to MSRP, likely, choosing to go with a Cloud Computer or building your own gaming rig will come down to convenience vs. cost.
Either way, it is good to see that Shadow has a plan, and hopefully, this allows them to survive!