Microsoft Slashes Game Pass Prices, Delays Call of Duty Day-One Releases
In a major pivot, Microsoft has announced immediate price reductions for its Xbox Game Pass Ultimate and PC Game Pass tiers. The company has also confirmed that future Call of Duty titles will no longer launch day-one on the service, instead arriving roughly a year later. These changes come after a significant price hike in October 2025 led to a loss of "millions of subscribers."
Pricing Changes
- Xbox Game Pass Ultimate: Reduced from $29.99 to $22.99 per month.
- PC Game Pass: Reduced from $16.49 to $13.99 per month.
- Microsoft notes that prices may vary by region.
- The new prices are lower than the October 2025 increase but remain above the prices prior to that date.
“Game Pass has become too expensive for players, so we need a better value equation.” – Xbox CEO Asha Sharma, in a leaked memo.
Call of Duty Availability: A Major Shift
In a notable change to its first-party strategy, Microsoft is altering how flagship Call of Duty titles will be handled on Game Pass.
- No Day-One Access: New Call of Duty games will not be added to Game Pass Ultimate or PC Game Pass on their launch day.
- Delayed Addition: They will be added to the services approximately one year after their initial release, during the following holiday season.
- Existing Titles Remain: Older Call of Duty games already in the catalog will remain available.
- A First-Party Exception: This makes Call of Duty the only first-party Xbox game series not offered as a day-one release on Game Pass.
Background: The October 2025 Price Hike
In October 2025, Microsoft raised Ultimate from $19.99 to $29.99 and PC Game Pass from $11.99 to $16.49. That increase was bundled with promises of an expanded catalog, day-one access to new releases, and additional subscription perks.
Following the $68.7 billion acquisition of Activision Blizzard, the company attempted to leverage Call of Duty to drive subscriber growth. In April 2026, Microsoft reduced the price increase by 25%—a precursor to the current cuts.
Subscriber Impact
According to Xbox’s chief strategy officer, the platform lost "millions of subscribers" after the October 2025 price hike. While Microsoft has not disclosed exact numbers, analysts estimate the subscriber base was approximately 35 million users prior to the increase.
Analyst Perspectives
Industry analysts have offered mixed reviews on Microsoft’s previous strategy.
- Mat Piscatella (Circana) stated that including Call of Duty in Game Pass did not lead to significant increases in Xbox console sales or subscriptions.
- Piers Harding-Rolls (Ampere Analysis) agreed, saying the commercial reasoning for a subscription-first strategy for major releases was not realized and did not provide sustained long-term subscriber growth.
- Both analysts agreed that the current price reduction should help increase subscriber numbers.
Harding-Rolls characterized the changes as "commercial pragmatism" rather than a fundamental strategy shift, noting Microsoft's recent moves to release exclusive games on competing platforms.
On Revenue: Harding-Rolls referenced reports that Microsoft lost $300 million in Call of Duty revenues through Game Pass inclusion, while Piscatella stated data did not suggest a significant impact on game sales.
Company Statements
Microsoft stated the pricing and content changes were made in response to player feedback:
“Our players cover a wide breadth of geographies, preferences, and tastes, so while there isn't a single model that's best for everyone, this change responds to a lot of feedback we've gotten so far. We'll continue to listen and learn.”
In a leaked memo, Xbox CEO Asha Sharma outlined a longer-term vision:
“Long term, we will evolve Game Pass into a more flexible system which will take time to test and learn around.”
Service Continuity
- Other tiers unchanged: Premium, Essential, and the base console tier remain at their current prices.
- Cloud gaming remains: All tiers that previously included Xbox Cloud Gaming continue to offer it.
- Ultimate subscribers keep access to hundreds of games on console and PC, online multiplayer, and day-one access to other major first-party releases.