- Xbox Game Pass lost subscribers in the millions following a 50% price increase in late 2025.
- Microsoft executives admitted that the pricing change accelerated the cancellations and slowed down the growth.
- The recent price reductions and service adjustments are helping Xbox regain momentum.
Microsoft’s flagship gaming subscription has suffered one of its biggest setbacks yet. In ‘The Game Business Live’ event held on June 8, 2026, Xbox executives revealed that Xbox Game Pass lost millions of subscribers after the 50% price increase rolled out last year. As a result, fans voiced their frustration, and the number of subscribers fell rapidly. Gamers were simply unwilling to accept this steep price, even though the subscription is an industry benchmark for cloud gaming.
A Massive Price Hike Triggered Millions of Players Exiting Xbox Game Pass
The Game Business Live event was held right after the three major game showcases, State of Play, Summer Game Fest, and Xbox Games Showcase. Here, the Chief Strategy Officer of Xbox, Matthew Ball, stated that “Xbox shed millions of subscribers when the Game Pass price increased 50% in Fall 2025”. According to Ball, the fall in subscriber count was noticeable in just a few months after the price hike. While no exact figures are revealed, the statement itself clearly paints a picture of the damage.
The price hike was dramatic, to be honest, in the video game industry. Although Microsoft increased the number of games available with the Game Pass, the community felt that the value offered didn’t match the cost at all.
Socials were flooded with cancellation announcements while the game forums discussed whether the Xbox Game Pass is even worth investing a monthly premium. Moreover, gamers pointed out that people now generally activate their Game Pass only when a major exclusive is set to launch, rather than maintain it all year-round.
However, Xbox saw this backlash and tried to reduce the damage with a broader restructuring effort. The price of Ultimate tier was reduced, and the massive price hike was rolled back partially.
The list of Xbox Game Pass games is now quite promising, with Assassin’s Creed Black Flag Resynced coming next month. Xbox CEO Asha Sharma has also recently stated that the Game Pass returned to growth after months of decline, and the subscriber retention is improving gradually.
Other notable shifts in Xbox are the inclusion of Xbox exclusives, as announced in the Games Showcase. Later this year, Gears of War: E-Day is releasing solely for Xbox Consoles and PCs, through the Xbox Game Pass. Another Xbox exclusive, Clockwork Revolution, is a time-travel and steampunk-style game coming in the year 2027. Although the service lost millions of subscribers, the company is working hard to get players back on board and return more than what they have spent.
