Xbox Game Pass price hike cost Microsoft ‘millions of subscribers’ – and now it’s trying to win them back
The Xbox Game Pass Ultimate price increase blew up in Microsoft’s face
📉 Microsoft’s 50% price hike for Xbox Game Pass Ultimate caused the loss of millions of subscribers
👏 To address the decline, CEO Asha Sharma reduced the membership price and introduced a more affordable basic tier
🤔 Subscription numbers have largely stagnated, prompting the company to implement new strategic changes to win back players
🔒 Microsoft is returning to console exclusives, such as Gears of War: E-Day, to reinforce the value of its ecosystem
When Microsoft announced it was raising the price of Xbox Game Pass Ultimate by 50% in October last year, the reaction was simple: people said they would unsubscribe.
Now, Xbox chief strategy officer Matthew Ball has admitted that the price hike cost Microsoft dearly.
“We shed millions of subscribers over the span of a few months,” Ball told The Game Business Live.
The price hike was quickly addressed by new Xbox CEO Asha Sharma, who conceded in a leaked memo that the service had become “too expensive for players”. In April, Xbox cut the price of an Xbox Game Pass Ultimate membership to $22.99 from $29.99. In May, Microsoft also introduced a cheaper, basic Game Pass tier through a new partnership with Discord.
However, with around 34 million subscribers as of early 2024, Xbox Game Pass has largely stagnated, and it’s likely that number has since dropped, not increased, following Ball’s candid admission.
Since Sharma’s appointment, Xbox has been making sweeping strategic changes as it tries to win back lapsed subscribers and disillusioned players. After essentially becoming a multiplatform publisher, Microsoft revealed that it’s returning to Xbox console exclusives starting with Gears of War: E-Day and Clockwork Revolution.
Ball said players should expect a “reliable pipeline” of Xbox‑first titles that reinforce the value of staying in the ecosystem, something that many argued was lost when Microsoft began porting all of its exclusives to PS5.
We’ve also seen Microsoft make several long-requested improvements to the Xbox Series X|S operating system, and it’s even launched a fan feedback site where it can focus on the major priorities players have. Funnily enough, a return to exclusive games was the number one request.
Microsoft is also celebrating its 20th anniversary in spectacular fashion with the release of an Xbox Series X20 Limited Edition console and controller. It’s already proven to be a hit online, with many stating they’ll buy one now that exclusives are returning.
While it’s pleasing to see Xbox course correct, the Redmond-based company still has an uphill battle. However, if it can iron out the mistakes and poor decisions made during this generation, it’ll make Xbox Project Helix – the company’s next-gen Xbox – a far more appealing proposition.
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Adam Vjestica is The Shortcut’s Senior Editor. Formerly TechRadar’s Gaming Hardware Editor, Adam has also worked at Nintendo of Europe as a Content Marketing Editor, where he helped launch the Nintendo Switch. He also runs a retro gaming YouTube channel called Game on, boy! Follow him on X @ItsMrProducts.