Xbox Game Pass lost millions of subscribers after 2025 price hike

Xbox Game Pass lost millions of subscribers following a 50 percent price increase in fall 2025. The admission came from Chief Strategy Officer Matthew Ball during an interview at Summer Game Fest.

The service had been estimated at more than 35 million subscribers in mid-2025. Earlier figures showed 34 million subscribers in February 2024. The October 2025 price rise applied to the Game Pass Ultimate plan and restructured lower tiers. New CEO Asha Sharma reduced the price again in April 2026, though not to previous levels. She also announced that future Call of Duty titles would no longer launch day one on the service. The loss of subscribers followed repeated price adjustments that began in 2024. Ball’s comments were shared publicly on June 8, 2026, by Geoff Keighley after an interview conducted by Chris Dring.

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Illustration of Microsoft Xbox layoffs showing office workers packing boxes
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Microsoft cuts 4,800 jobs amid Xbox restructuring

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Microsoft announced major layoffs across its gaming division and other units on July 6, 2026. The cuts total 4,800 positions, or 2.1 percent of the global workforce. Xbox is divesting several studios as part of the reset.

Microsoft's Xbox Game Pass has seen its subscriber count drop to 30 million, well short of internal targets. The decline comes after a significant price increase last year that prompted millions to cancel. New Xbox CEO Asha Sharma has addressed the issues in recent staff communications.

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Xbox leader Asha Sharma told staff in a memo that the company must make hard choices to build a stronger XBOX. The update follows a recent Game Pass price reduction that has improved subscriber growth.

Xbox CEO Asha Sharma and Xbox Game Studios Head Matt Booty emailed employees on June 10 with a blunt message that current operations cannot continue. The note outlined five harsh realities facing the division, including low profits and rising costs. Bloomberg separately reported that major layoffs are planned for next month.

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Xbox CEO Asha Sharma has suggested the company will introduce new approaches to console sales later this year amid rising hardware costs. In a Fortune interview, she pointed to challenges with RAM and storage prices that are now 2.75 times higher than at launch. Sharma said the firm is exploring options beyond price increases to keep consoles accessible.

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