For years, Xbox Game Pass was considered one of the best values in gaming, especially for players looking to access a huge library of titles without spending hundreds of dollars on individual releases. While the service remains popular, there’s no denying that its appeal took a hit after several pricing changes and restructuring efforts in recent years.

The most controversial adjustment arrived in October 2025, when Microsoft significantly increased the cost of its premium subscription tier. Now, a senior Xbox executive has revealed just how damaging that decision was for the service.

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Xbox Game Pass reportedly lost “millions of subscribers” after becoming more expensive

In late 2025, Microsoft restructured Xbox Game Pass and introduced a dramatic price increase for the Ultimate tier. The subscription jumped from $19.99 USD to $29.99 USD per month, representing a 50% increase.

Microsoft justified the new pricing by adding additional benefits, including Fortnite Crew and Ubisoft+ Classics, to the Ultimate plan. While the company argued that subscribers were receiving more value, many players strongly disagreed.

The backlash was immediate. Social media platforms were flooded with criticism, and many subscribers openly announced they were canceling their memberships. Reports at the time suggested support websites experienced unusually high traffic as users attempted to end their subscriptions.

Although it was already clear that the service had lost customers following the increase, the scale of the damage remained unknown.

Speaking with Chris Dring from The Game Business during Summer Game Fest, Matthew Ball, Xbox’s recently appointed Head of Strategy, confirmed that Xbox Game Pass “lost millions of subscribers” in the months following the controversial price hike.

Microsoft previously announced that Xbox Game Pass had reached 34 million subscribers in 2024, including former Xbox Live Gold members who were transitioned into Game Pass Core. Industry estimates suggested the figure may have reached 35 million by 2025, though Microsoft never officially confirmed that number.

Because the company no longer shares updated subscriber counts, it remains impossible to determine exactly how many users abandoned the service after the increase.

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Las actuales consolas de XBOX tienen un inesperado impulso en el mercado en el final de la actual generación

Xbox Game Pass is beginning to recover

According to Matthew Ball, Microsoft later adjusted its approach by reducing the price of Xbox Game Pass Ultimate from $29.99 USD to $22.99 USD.

While the subscription still costs more than it did before the October 2025 increase, Ball argued that the value proposition has changed. One notable difference is the removal of day-one access to new Call of Duty releases, which altered how Microsoft positions the service.

The executive also stated that the changes introduced during the first quarter of 2026 have been better received by consumers.

His comments align with previous statements from Xbox president Asha Sharma, who acknowledged that the dramatic price increase was a mistake. Sharma previously claimed that subscriber acquisition and retention began improving after Microsoft lowered the cost again.

Although Xbox Game Pass appears to be recovering, Ball’s comments highlight how sensitive subscription services can be to pricing decisions. For Microsoft, the challenge now is convincing former subscribers that the service once again offers enough value to justify the monthly fee.