Xbox Game Pass is at a turning point. After a controversial 50% price hike in October 2025 drove a wave of cancellations, Microsoft’s new Gaming CEO has officially admitted the service costs too much. Here is everything confirmed so far, including current prices, what triggered the increase, and what Microsoft is planning next.
Current Xbox Game Pass Prices (April 2026)
| Tier | Monthly Price (USD) | Monthly Price (GBP) |
| Game Pass Essential | $9.99 | £6.99 |
| Game Pass Premium | $14.99 | £10.99 |
| PC Game Pass | $16.49 | £13.49 |
| Game Pass Ultimate | $29.99 | £22.99 |
The Ultimate tier is the centre of the controversy. In October 2025, Microsoft raised its price from $19.99 to $29.99 per month, a roughly 50% increase. The backlash was significant, with many long-time subscribers choosing to cancel rather than absorb the higher cost.
To accompany the hike, Microsoft added new perks to the Ultimate tier, including Fortnite Crew, Ubisoft+ Classics, and expanded cloud gaming access. The Premium tier also received an improved game library. However, for a large portion of subscribers, those additions still did not justify the steeper monthly price.
What Did Microsoft’s New CEO Actually Say?
Asha Sharma replaced Phil Spencer as Microsoft Gaming CEO in February 2026. In April 2026, an internal memo she sent to Microsoft staff was obtained and published by The Verge. In it, Sharma stated directly:
“Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one. Short term, Game Pass has become too expensive for players, so we need a better value equation. Long term, we will evolve Game Pass into a more flexible system, which will take time to test and learn around.”
This is the first time a top Xbox executive has openly acknowledged that the current pricing is a problem. Sharma also confirmed she is aware of the widespread community discussion around potential price cuts, though she made clear that no immediate changes are coming.
Why Did the Price Go Up in the First Place?
The October 2025 price hike traces back directly to Call Of Duty. After Microsoft acquired Activision Blizzard for $68 billion, both Call Of Duty: Black Ops 6 (2024) and Call Of Duty: Black Ops 7 (2025) launched day one on Game Pass Ultimate. However, according to a report citing a former Microsoft employee, that decision cost Xbox more than $300 million in lost Call Of Duty console and PC sales in a single year.
Microsoft raised Game Pass prices to help offset that revenue gap. The logic was straightforward: if subscribers access a major title through the subscription rather than buying it outright, the subscription price needs to reflect that cost. The problem is that subscribers clearly felt the new price went too far.
Could Call Of Duty Be Removed From Game Pass?
This is now an active internal conversation at Microsoft. Jez Corden of Windows Central reported that Microsoft is considering removing new Call Of Duty releases from day-one Game Pass access as a way to bring costs down. Sharma reportedly acknowledged this possibility in the same internal memo and indicated she would discuss it further with staff.
Removing Call Of Duty day-one access would represent a major strategic shift. It became one of the primary reasons many players upgraded to the Ultimate tier in the first place, so any change here would directly affect the subscription’s perceived value. Nothing has been confirmed yet, however, so subscribers on Ultimate should watch this space closely.
The Netflix Bundle: What We Know
One possible path toward better value involves Netflix. Netflix co-CEO Greg Peters confirmed publicly that he has met with Sharma and that the two have discussed ideas for subscription bundle partnerships. Peters said he “wouldn’t eliminate any possibilities,” while also noting that Microsoft is still working through how to make Game Pass financially sustainable.
He added: “You would have to do it in a way that works for the consumer and works for both companies.” No bundle has been confirmed and no timeline has been given, but the conversations between the two companies are real and ongoing.
What Else Has Sharma Changed?
Beyond the Game Pass discussion, Sharma has already made one visible public move since taking over. She cancelled the “This is an Xbox” marketing campaign, stating it did not “feel like Xbox.” At the Game Developers Conference in March 2026, she also spoke directly with developers about making both Game Pass and future Xbox hardware more affordable, signalling a broader shift in Microsoft’s approach to the Xbox platform.
What Does the Future of Game Pass Actually Look Like?
Based on everything confirmed in Sharma’s memo and subsequent reporting, here is where things stand:
| Development | Status |
| Price cuts | Confirmed as a direction, not imminent |
| Lower-cost or modular tiers | Specifically hinted at by Sharma for the long term |
| More flexible system | In development, will “take time to test and learn around” |
| Call Of Duty day-one access | Under review, unconfirmed either way |
| Netflix bundle | Discussed, nothing finalised |
Sharma’s memo is notably specific about the long-term direction. The phrase “more flexible system” strongly points toward lower-priced entry options or modular tier structures, giving subscribers more control over what they pay for rather than a one-size-fits-all approach. That said, the timeline for any of this remains unclear.
Is Xbox Game Pass Still Worth Subscribing to Right Now?
Here is an honest assessment based on confirmed facts:
Game Pass Essential at $9.99 / £6.99 remains solid value if you play regularly and are content with the rotating library. Game Pass Premium at $14.99 / £10.99 is reasonable for players who want a broader selection. However, Game Pass Ultimate at $29.99 / £22.99 is harder to justify at its current price, particularly given the uncertainty around whether Call Of Duty day-one access will continue.
If you are currently on Ultimate and subscribed primarily for Call Of Duty, it is worth monitoring Microsoft’s next official statement before committing to another renewal.
What to Watch For Next
- Microsoft’s short-term plan for a “better value equation” has no confirmed timeline yet
- A decision on Call Of Duty and Game Pass is expected to be clarified in the coming weeks
- The potential Netflix and Game Pass bundle remains an open discussion
- Long-term flexible and lower-cost tiers are in development but will take time to roll out
Check back here for updates as Microsoft makes further announcements on the future of Xbox Game Pass pricing.
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