Xbox Game Pass generated $5 billion in revenue during the previous fiscal year, and Xbox president Sarah Bond described the service as profitable in a recent interview with Game Watch at TGS 2025. Microsoft raised subscription prices substantially on the following day, with the Ultimate tier increasing to $29.99 per month. The company acquired Activision Blizzard for $75.4 billion and ZeniMax Media for $7.5 billion to expand the service's game library, but subscriber growth failed to meet internal projections.
Critics questioned Bond's profitability claims after the 50 percent price increase, suggesting Microsoft seeks higher returns from existing subscribers rather than expanding its user base. The announcement prompted numerous cancellation requests that overwhelmed the service's subscription management webpage. Analysts note the gaming division faces pressure to justify massive acquisitions despite adding major franchises to the platform. Microsoft has not disclosed whether it expects subscriber retention at the elevated pricing tier.
Critics questioned Bond's profitability claims after the 50 percent price increase, suggesting Microsoft seeks higher returns from existing subscribers rather than expanding its user base. The announcement prompted numerous cancellation requests that overwhelmed the service's subscription management webpage. Analysts note the gaming division faces pressure to justify massive acquisitions despite adding major franchises to the platform. Microsoft has not disclosed whether it expects subscriber retention at the elevated pricing tier.
