- Microsoft anticipated that Game Pass would reach 77 million users by 2026.
- However, the service only has around 30 million subscribers, seeing no boost from the Activision Blizzard merger.
- Despite its shortcomings, Game Pass is still central to the company’s plans.
Xbox has once again become the talk of the town due to its latest round of layoffs. The company just let go of over 3,000 employees, firing entire departments and laying off developers at every major studio under its wing.
The gaming giant has also spun off multiple studios in a bid to offset losses stemming from its lack of growth this generation. As it turns out, Game Pass is central to the problems at Xbox, failing to amass even half the subscribers Microsoft thought it would have in 2026.
Why it matters: Relying this much on a subscription service showcases how Xbox has bet on the wrong horse multiple times over the past decade, facing the consequences every time.
As reported by the Wall Street Journal, Microsoft expected Xbox Game Pass to amass 77 million subscribers by 2026, but the service has only attained around 30 million users.
The slower-than-expected growth of Game Pass is apparently a central reason behind the ongoing Xbox restructure. According to the article, Microsoft anticipated that the service would see exponential growth following the Activision Blizzard acquisition.
However, despite the $70 billion deal, Game Pass hasn’t grown in three years, instead losing four million subscribers since hitting a new peak in 2024. In a memo she shared on X, CEO Asha Sharma also highlighted how the premier service has failed to hit internal targets or add meaningful growth to the Xbox ecosystem.
A big reason behind this stagnant performance is the 50% price hike for Game Pass last year, which lost the Xbox subscription service millions of subscribers. Despite these shortcomings, however, Game Pass is still an essential component of the company, according to the Wall Street Journal.
With recent price cuts promoting growth, Game Pass could be set to make a comeback sooner rather than later.
Do you think Xbox Game Pass can reach almost 80 million subscribers? What does the company need to do to achieve this result? Tell us in the comments below or head to the Tech4Gamers forum for discussion.
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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 devoutly 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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