Microsoft says Xbox Game Pass lost “millions of subscribers” after it increased prices by 50% with a price hike in October 2025.
Xbox chief strategy officer Matthew Ball relayed the damage during a live taping with The Game Business today. The Game Awards and Summer Game Fest host Geoff Keighley was in attendance and shared his words on social media today. GameSpot also shared an extended version of Microsoft executive’s quote.
“We shed millions of subscribers over the span of a few months,” Ball said.
The exact number of subscribers Xbox Game Pass lost was not revealed, but “millions” makes it sound like the gaming subscription service took a substantial hit. The exact number of subscribers Microsoft had in early 2026 vs. today is unclear, but we do know it had at least 34 million users subscribed as of February 2024. By July 2025, Xbox Game Pass revenue had reportedly reached nearly $5 billion for the first time.
Game Pass seemed to be a go-to place for Xbox fans across Xbox One, Xbox Series X | S, and Xbox on PC, but that took a hit when price hikes were announced late last year. Microsoft began October 2025 by confirming a monthly subscription for its Xbox Game Pass Ultimate tier would rise from $19.99 to a whopping $29.99. It was a 50% increase, bringing prices to $120 per year.
Although the decision came with the promise of more big games, such as Hogwarts Legacy, as well as other benefits, current subscribers were far from impressed. Fans quickly took to social media en masse to announce they would be canceling their subscriptions. At the time, it was unclear if that movement was doing anything to push Microsoft into walking back the decision. Now, it definitely sounds like the Xbox company felt that hit.
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Ball said that Microsoft “corrected that offering” when it announced it would slash the price of Xbox Game Pass Ultimate from $29.99 a month to $22.99. It was a mostly unexpected price decrease that offered a change of pace after years of incrimental increases, both for Game Pass and consoles. Although the new, current price of Game Pass is still $3 more expensive than the pre-hike price, Ball noted the service’s “value has changed.”
As part of the trade-off, Microsoft confirmed rumors that it would be pulling Call of Duty games from the service’s day-one release plan. That part of the bargain is one that Ball specifically said users have appreciated.
Meanwhile, Xbox CEO Asha Sharma recently commented on Microsoft’s Xbox Game Pass strategy during a recent interview with Bloomberg. During the conversation, she said the company has “been
able to reset Game Pass after an eight-month decline.”
“It’s now returned to growth and expanding retention,” she added, “and most importantly, we’re starting to get back to being closer to our players and our community.”
Meanwhile, Microsoft leadership is still winding down after delivering its Xbox Games Showcase 2026 and Gears of War: E-Day Direct, yesterday. The event saw it announce a number of new projects, includinga a new Spyro: A Realm Beyond, Persona 6, and more. You can see everything announced at the show here.
Michael Cripe is a freelance writer with IGN. He’s best known for his work at sites like The Pitch, The Escapist, and OnlySP. Be sure to give him a follow on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).