Game Pass has not lived up to Xbox's expectations

Asha Sharma, General Manager of Xbox, described Game Pass as one of Microsoft's initiatives that have created value for the company but have not grown at the expected rate. According to data from The Wall Street Journal, the Xbox subscription service could also lose millions of users after 2024. In an official letter to staff, Sharma wrote that the Xbox business "is not healthy today", and its profitability is 3–10 times lower than that of comparable platform and publishing companies. According to her, Microsoft has focused on Game Pass, cross-platform capabilities and a broader content portfolio, but these areas "have not grown at the expected rate". Sharma did not disclose the current number of Game Pass subscribers. Meanwhile, The Wall Street Journal reports that the service currently has around 30 million users. If this estimate is correct, Game Pass has lost approximately 4 million subscribers compared to February 2024, when Microsoft officially reported 34 million users. This is significantly lower than Microsoft's internal expectations. During the review of the deal with Activision Blizzard, company documents indicated that Game Pass could reach 77 million subscribers by 2026. Microsoft has already changed its approach to Game Pass. In 2025, the company raised the price of Game Pass Ultimate to $30 a month, but following user exodus, it lowered it to $23. Furthermore, new Call of Duty titles are no longer released on Game Pass on their launch day, even though the series was supposed to be one of the main selling points for a subscription following the acquisition of Activision Blizzard. In her letter, Sharma did not explain exactly how Microsoft would change Game Pass going forward. She merely noted that Xbox would cut investment in lower-priority areas and focus on projects with the best chances of success. None of the previously announced first-party Xbox games will be cancelled as part of the restructuring. As a reminder, we previously reported that Asha Sharma announced the largest restructuring in Xbox's history. The company will cut around 3,200 jobs during the 2027 financial year, whilst Ninja Theory and Undead Labs will be transferred to new owners. Compulsion Games and Double Fine will become independent studios. Read also: Arkane Studios founder believes Game Pass is hurting the industry