Xbox Game Pass subscriber numbers have fallen by four million over the past two years, dropping from 34 million in 2024 to 30 million currently, according to reports from Bloomberg and The Wall Street Journal.
Price hike blamed for subscriber loss
The decline is largely attributed to a 50% price increase for Xbox Game Pass Ultimate implemented last year, which was partially reversed in April 2026. Microsoft's chief strategy officer, Matthew Ball, acknowledged in June that the company lost 'millions of subscribers' following the price increase, though it remains unclear if the exact figure matches the four million reported.
In a tweet from Geoff Keighley on June 8, 2026, Ball stated: 'Xbox shed “millions of subscribers” when the Gamepass price increased 50 percent in Fall 2025.'
Far below initial targets
The current 30 million subscriber count is significantly lower than Microsoft's initial expectations. Court documents from the Activision Blizzard acquisition battle revealed Microsoft had set a goal of reaching 77 million subscribers by fiscal year 2026, ending June 2027.
Xbox CEO Asha Sharma admitted in a note to staff ahead of recent layoffs that Game Pass had fallen short of expectations. 'To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content,' Sharma wrote. 'While those businesses have created meaningful value, they did not grow at the pace we expected. As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome.'
Microsoft's shift in strategy
The subscriber decline comes amid broader challenges for Microsoft's gaming division, including layoffs and a pivot back to prioritizing console hardware as part of a brand 'reset.' The company had heavily marketed Game Pass as the 'Netflix of gaming,' but the strategy has not paid off as anticipated.
Moving forward, Game Pass is expected to play a role in Microsoft's next console, codenamed Project Helix, though Sharma's lukewarm stance raises questions about the service's long-term future.
