Xbox Game Pass Loses "Millions of Subscribers" After Major Price Increase in October 2025
Microsoft has confirmed that Xbox Game Pass lost "millions of subscribers" following a significant price hike implemented in October 2025. During a live taping with The Game Business, Xbox chief strategy officer Matthew Ball shared the impact of the decision, revealing that the service saw a massive drop in user numbers over a short period. The event was hosted by Geoff Keighley, known for organizing The Game Awards and Summer Game Fest, and the details were later shared on social media and expanded upon by GameSpot.
While the exact number of lost subscribers wasn't disclosed, the term "millions" suggests a substantial decline in the gaming subscription service's user base. As of February 2024, Xbox Game Pass had at least 34 million users, and by July 2025, its revenue had reportedly reached nearly $5 billion for the first time. The price increase, however, seems to have disrupted that momentum.
The Impact of the Price Hike
Xbox Game Pass had long been a popular choice for gamers on Xbox One, Xbox Series X | S, and Xbox on PC. But when Microsoft announced the price hike in late 2024, the reaction from the gaming community was swift and negative. The company confirmed in October 2025 that the monthly subscription for Xbox Game Pass Ultimate would rise from $19.99 to $29.99 — a 50% increase, which amounted to an extra $120 per year.
Despite the promise of more big games, such as Hogwarts Legacy, and additional benefits, current subscribers were not impressed. Many took to social media to express their dissatisfaction and even announced their intent to cancel their subscriptions. At the time, it was unclear whether this backlash would prompt Microsoft to reconsider its decision. However, Ball’s recent comments indicate that the company indeed felt the consequences of the price increase.
Microsoft's Response and the New Pricing Strategy
In response to the backlash, Microsoft decided to "correct that offering" by reducing the price of Xbox Game Pass Ultimate from $29.99 to $22.99 per month. This price cut was unexpected, especially after years of incremental increases for both Game Pass and Xbox consoles. Although the current price is still $3 more than the pre-hike rate, Ball stated that the service's "value has changed" with the new pricing model.
As part of the adjustment, Microsoft confirmed rumors that it would no longer include Call of Duty games in the day-one release plan for Game Pass. Ball mentioned that this change has been appreciated by users, indicating that the company made a strategic move to address subscriber concerns while still managing expectations.
Xbox Game Pass Returns to Growth
Xbox CEO Asha Sharma recently spoke about the company's Game Pass strategy during an interview with Bloomberg. She noted that Microsoft has been able to "reset Game Pass after an eight-month decline." According to Sharma, the service is now returning to growth and improving retention. More importantly, she said the company is getting back to being closer to its players and the gaming community.
Microsoft's leadership is currently focused on the aftermath of its recent events, including the Xbox Games Showcase 2026 and Gears of War: E-Day Direct. These events highlighted new projects like Spyro: A Realm Beyond and Persona 6, among others. For a full list of the latest announcements, check out the event coverage.
