Xbox Game Pass Subscriber Loss Amid 2025 Price Increase
Xbox Game Pass lost "millions" of subscribers following a significant price hike in 2025, according to Matthew Ball, Xbox's chief strategy officer. Ball revealed this during a recent appearance at The Game Business Live, where he discussed the impact of raising the subscription fee from $20 to $30. This increase, announced in October 2025, led to a noticeable decline in the service's user base over the course of several months.
Ball also mentioned that Microsoft took steps to address the issue by reducing the price of Game Pass Ultimate to $23 per month. This adjustment was among the first major actions taken by Xbox CEO Asha Sharma. Additionally, Ball highlighted that the decision to no longer include new Call of Duty games in the Game Pass library was well-received by users, indicating a shift in strategy to better align with subscriber expectations.
While the current price of $23 per month is still higher than it was in 2024, Ball emphasized that the value proposition of the service has evolved. However, without official subscriber numbers from Microsoft, the exact figures of those who left and possibly returned after the price cut in April 2026 remain unclear.
In 2024, Microsoft reported that Game Pass had 34 million members. This figure included users who had transitioned from Xbox Live Gold accounts to Game Pass Core, which is now referred to as Game Pass Essential.
Xbox's Strategic Shift Under New Leadership
During his talk, Ball also addressed the challenges faced by the Xbox brand and business under the previous leadership of Phil Spencer and Sarah Bond. Sharma has been committed to "resetting" the Xbox business and revitalizing the brand, with a particular focus on exclusive games. However, Microsoft's communication around Xbox exclusives has been inconsistent, leading to frustration among long-time fans who feel the changes are not substantial enough.
At the Xbox Games Showcase, Microsoft announced that Gears of War: E-Day, scheduled for October 2026, will be a console exclusive on Xbox. Additionally, Clockwork Revolution, set for release in 2027, will also be exclusive to Xbox consoles. Ball has further committed to establishing a "reliable pipeline" of console exclusives in the future, aiming to attract and retain users.
Beyond exclusive titles, Microsoft continues to prioritize hardware development. Despite rising component costs, the company is moving forward with its plans for a next-generation console under Project Helix. This focus on hardware, combined with a renewed emphasis on exclusives, is expected to play a key role in the future of the Xbox brand.
