Microsoft Xbox Game Pass: Subscription numbers are apparently a disaster
Microsoft is experiencing a dramatic drop in user numbers for Xbox Game Pass. Four million customers turned their backs on the service because of unpopular price increases. The shrinking subscription service has now forced the company to rethink its approach.
User numbers are collapsing
Microsoft is recording a significant decline in subscription numbers for its in-house subscription service Xbox Game Pass. Around 30 million people are currently using the offer, which corresponds to a loss of four million customers since 2024. The ambitious goal of reaching around 77 million subscribers by mid-2026 is now a long way off.
This of course contributed significantly to the 3,200 job cuts announced yesterday. A main reason for the decline in membership is past price adjustments. Before the release of the game Call of Duty: Black Ops 7, the company increased the monthly costs for the Ultimate level from 17.99 to 26.99 euros, after which many users angrily canceled their memberships. Chief Strategy Officer Matthew Ball confirmed that the company lost millions of customers as a result.
Internal goals missed
Like that Wall Street Journal Citing informed sources, internal documents illustrate the extent of this dramatic miscalculation. During the takeover of Activision Blizzard, management predicted rapid growth. The goal was to have over 100 million users by 2030. However, reality shows that the service has been stagnating at best for years and cannot meet internal expectations. In order to stop the negative trend, the new managing director Asha Sharma initiated the first countermeasures.
She lowered the prices for the PC tariffs (12.99 euros/month) and Ultimate tariffs (20.99 euros/month). At the same time, however, the company canceled the advantage of offering new titles in the Call of Duty series as a subscription directly on the day of release.
Future of Xbox uncertain
The weak numbers could have far-reaching consequences for the entire hardware division. Former CEO Phil Spencer stressed during Federal Trade Commission hearings that the company could exit the console business. The prerequisite for this is that the subscription service does not exceed the 40 million user mark by the 2027 financial year.
Some analysts believe that the service has already reached its maximum potential. Many consumers still prefer to buy video games regularly instead of renting them. The concept of a flat-rate game subscription is reaching its natural limits and is forcing Microsoft to realign its own sales strategy.
