Xbox Game Pass price increase reportedly a result of financial strain from major releases
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Key points
- Microsoft announced a 50% price increase for the highest level tier in its Game Pass subscription service.
- The price increase is reportedly a sign that Xbox’s streaming push is not generating the revenue necessary.
- Xbox reportedly gave up more than $300 million in sales of Call of Duty on console and PCs last year.
Microsoft’s price hike for its game pass subscription service is reportedly influenced by the release of major titles on the streaming service, cutting into sales of higher-margin games, such as Call of Duty. The Xbox Game Pass Ultimate subscription plan price changed from $19.99 per month to $29.99 on Oct. 1, 2025, prompting a wave of gamers to cancel their subscriptions.
The price increase, according to an exclusive report from Bloomberg, is indicative that Xbox’s streaming push is “still not generating the revenue it would like eight years after launch.” The exclusive report sources interviews with seven current and former Xbox employees. Xbox reportedly gave up more than $300 million in sales of Call of Duty on consoles and PCs last year.
Placing the Call of Duty franchise on Game Pass offers great value for subscribers, but is not great for Xbox’s sales of the game, according to former employees questioned by Bloomberg. IGN reports 82% of sales for Call of Duty: Black Ops 6, the top-selling video game in the US last year, were accounted for on PlayStation.
Numerous reports online indicate that Microsoft is planning on testing a free-ad-supported tier for Xbox Cloud Gaming, which will not require an Xbox Game Pass subscription. The public beta test for the free Xbox Cloud Gaming is said to be coming soon at an undisclosed date; a full launch is slated in the next couple of months.
