Overview
- The Wall Street Journal reported Monday that Game Pass now has about 30 million paying subscribers, down from the roughly 34 million Microsoft last disclosed in 2024.
- Internal Microsoft slides revealed during the FTC’s Activision review had targeted roughly 77 million Game Pass subscribers by 2026, a gap that highlights how far current results lag company expectations.
- Xbox executives say an October 2025 price hike and the decision to include new Call of Duty titles at launch caused heavy churn, and Matthew Ball said the moves cost the service “millions” of subscribers.
- New CEO Asha Sharma quickly reversed course by cutting Game Pass prices, removing day‑one Call of Duty availability, announcing about 3,200 layoffs, and planning to divest several studios while pausing some third‑party negotiations.
- Despite the decline in members, Game Pass generates material revenue (reported near $5 billion a year) and Microsoft plans to keep the service, but the episode raises questions about the sustainability of growth through acquisitions and day‑one releases and creates short‑term uncertainty for developers and partners.