Microsoft’s decision to sharply increase Xbox Game Pass subscription fees in October 2025 triggered a massive exodus of users, according to Xbox chief strategy officer Matthew Ball. Speaking at Monday’s The Game Business Live event, Ball provided a candid look at the fallout from the company’s controversial pricing strategy.
“We saw millions of subscribers walk away over the course of a few months,” Ball admitted (via GameSpot). The flagship Game Pass Ultimate tier jumped from $19.99 to a staggering $29.99 per month—a threshold that proved untenable for a large segment of the player base. While Microsoft boasted over 34 million subscribers as of February 2024, the company has since remained tight-lipped regarding its current user figures.
Under the leadership of new Xbox CEO Asha Sharma, the company has begun recalibrating its strategy. In an April 2026 memo, Sharma acknowledged that the service had become “too expensive for players,” prompting a subsequent price adjustment. Game Pass Ultimate now sits at $22.99—still a premium over the original cost, but a more approachable figure than the previous $29.99 peak. Furthermore, a streamlined, lower-cost option was introduced in May through a new partnership with Discord.
Image: MicrosoftBeyond pricing adjustments, Xbox is attempting to stabilize its ecosystem by doubling down on exclusive content. Following a period of experimentation that saw signature franchises—such as Halo—expand to rival platforms like the PlayStation 5, the company is now reaffirming its commitment to platform-defining exclusives.
“Players need a reliable pipeline that honors their investment in the Xbox platform and keeps them engaged long-term. It is widely understood across the industry that exclusives remain vital to brand identity and platform growth,” Ball explained at the event (via VGC).
However, following the most recent Xbox Games Showcase, many observers are questioning whether this renewed focus on exclusives is a genuine shift in philosophy or merely a public relations effort. It remains to be seen if relying on classic console-war rhetoric will be enough to entice the disillusioned player base back into the fold, especially as Microsoft faces the daunting challenge of navigating a shifting generational landscape.
It is undeniably a pivotal moment for the brand—though, for now, the quality of the games currently available on Game Pass remains its strongest argument for retention.
Source: Polygon
