- Microsoft reportedly spent nearly $80 billion to boost Game Pass over the last ten years.
- The service was expected to hit 77 million this year, but it’s sitting at 30 million instead.
- It lost 4 million subscribers after the 50% price hike last year and continues to stall.
A new report says that Microsoft spent nearly $80 billion on Xbox and Game Pass deals over the last decade, mainly on Activision Blizzard and other studio acquisitions. However, Game Pass subscribers have still dropped by a few million since last year.
The service was Microsoft’s answer to a Netflix-like subscription, but analysts have argued that such a model doesn’t work well with gamers. Many users align with buying a few mainstream titles per year, which played a huge role in stalling Game Pass.
Why it matters: Microsoft invested fervently into Game Pass, seeing it as the future of Xbox. However, the drastic misjudgement is forcing the brand to face mounting pressure. Xbox has to rethink its subscription model moving forward.
According to Bloomberg’s report, the tech conglomerate was also spending $1 billion annually on third-party Game Pass deals to attract new players. However, even initiatives like offering the service to PC gamers and streaming markets did not work out.
Day-one releases also might have done more harm than good, with many Microsoft executives arguing that the decision harmed revenue and cannibalized sales instead.
Xbox employees reportedly grew concerned about stagnating Game Pass numbers, and the fears were eventually confirmed. Microsoft expected the service to reach 77 million users by 2026, but it’s only sitting at 30 million at the moment.
This decline, despite the heavy investments, came via the 50% price increase in 2025. The recent price drop did not convince many users to return. Therefore, analysts’ old ‘100 million by 2030’ milestone seems more unlikely than ever now.
The new Xbox leadership could reform Game Pass to help it thrive moving forward, alongside its broader gaming strategy.
Do you think Game Pass would have grown if Xbox continued developing unique games for the service? Is the subscription service even a sustainable solution in the first place? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devotedly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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