Xbox Game Pass Recovers After Massive Price Hike Backlash
Microsoft lost millions of Xbox Game Pass subscribers following a sharp price increase in October 2025, according to Xbox Chief Strategy Officer Matthew Ball. New CEO Asha Sharma later lowered the Ultimate tier to $22.99 and removed Call of Duty Day One access to stabilize the service and recover growth by May 2026, as reported by Techspot via detikINET.
Why did Xbox Game Pass lose millions of subscribers?
A drastic price hike in October 2025 triggered a mass exodus of users. Matthew Ball, Xbox Chief Strategy Officer, confirmed in an interview with Game Business Live at Summer Game Fest that the company lost “millions” of customers within months of the announcement.
The price jumps were steep. Xbox Game Pass Ultimate rose 50%, moving from $19.99 to $29.99 per month. Simultaneously, PC Game Pass increased by nearly 40%, jumping from $11.99 to $16.49. The backlash was so immediate that Microsoft’s official website crashed under the volume of users attempting to cancel their subscriptions.
How did Asha Sharma fix the Game Pass pricing crisis?
Incoming CEO Asha Sharma took over a fractured subscriber base and moved quickly to reverse the pricing strategy. In an internal memo from April, Sharma admitted the service had become too expensive for the average gamer. She subsequently lowered the price of the Ultimate tier to $22.99 per month.
This correction worked. By May 2026, Sharma reported that subscriber growth had recovered and retention rates were improving. Matthew Ball noted that these price adjustments resonated more effectively with the user base than the previous aggressive hikes.
Price Shift Comparison
| Tier | Original Price | Oct 2025 Peak | Sharma Correction |
|---|---|---|---|
| Game Pass Ultimate | $19.99 | $29.99 | $22.99 |
| PC Game Pass | $11.99 | $16.49 | Reduced (Near Normal) |
What happened to Call of Duty on Game Pass?
The price reduction came with a significant trade-off for players. To offset the lower monthly cost, Microsoft removed Call of Duty (CoD) titles from “Day One” availability. New CoD releases will no longer be available the moment they launch.
According to the new policy, these titles will only enter the Game Pass catalog approximately one year after their initial release. This marks a major shift in Microsoft’s acquisition strategy for Activision Blizzard content, moving away from the “instant access” model to protect revenue streams.
Will Xbox return to exclusive games and ditch AI?
Asha Sharma’s leadership has seen a pivot away from experimental AI and a return to core gaming strengths. She officially shut down the “Gaming Copilot” AI project for Xbox and mobile, a move that aligns with widespread gamer criticism of the tool.
Instead, Sharma is doubling down on high-profile exclusives. Recent announcements include Gears of War: E-Day and Clockwork Revolution. This strategy aims to rebuild brand loyalty through quality content rather than AI-driven features.
This shift surprised many, including Seamus Blackley, the creator of the original 2001 Xbox. Blackley had previously criticized Sharma’s appointment, suggesting she was a “palliative care doctor” leading Xbox toward a slow death. However, the recovery of subscriber numbers by mid-2026 suggests a different trajectory.
Frequently Asked Questions
Is Xbox Game Pass still worth it in 2026?
With the Ultimate price now at $22.99 and a focus on exclusive titles like Gears of War: E-Day, the value proposition has stabilized, though the loss of Day One Call of Duty access is a drawback for some.
Why did Microsoft remove Call of Duty from Day One?
Microsoft used this as a compromise to lower the monthly subscription fee while maintaining profitability from its most successful franchise.
Who is Asha Sharma?
Asha Sharma is the CEO of Xbox and a former AI executive who has pivoted the company toward realistic pricing and a stronger focus on exclusive game development.
What do you think about the removal of Day One Call of Duty titles? Is a lower monthly price a fair trade? Let us know in the comments or subscribe to our newsletter for more gaming industry analysis.