Xbox's decision to reverse recent substantial price increases for Game Pass was reportedly driven by the service losing "millions" of subscribers following the hikes implemented in October 2025. Matthew Ball, Xbox's chief strategy officer, revealed the subscriber decline during an interview with Game Business Live, as reported by GameSpot. The price for Game Pass Ultimate, in particular, saw a steep 50% increase, rising from $19.99 to $29.99 per month.
This significant subscriber attrition likely prompted Xbox CEO Asha Sharma to prioritize a price reduction. The adjusted pricing saw Game Pass Ultimate return to $22.99 per month, still an increase from its previous rate but considerably less than the peak price. While this price cut came with a compromise – Call of Duty titles will now arrive on Game Pass approximately one year after their initial launch – the immediate impact on user acquisition and retention has been positive. Sharma noted in May that the company observed growth in Game Pass acquisitions and improved retention, describing it as "a good first step."
Ball echoed this sentiment, stating that the price adjustment is "resonating" with gamers. The Game Pass price rollback is part of a broader strategy under Sharma's leadership to revitalize Xbox's console business. Initial expectations for Sharma's tenure suggested a potential winding down of the division, but recent actions, including the Game Pass price adjustments and a renewed focus on console exclusives, indicate a concerted effort to bolster Xbox's competitive standing in the market.