FULL ARTICLE: 6 MIN READ TIME
Quick Check:
Effective April 21, 2026, Microsoft has reduced the price of Xbox Game Pass Ultimate from $29.99/month to $22.99/month — a nearly 25% price cut. PC Game Pass has also dropped from $16.49/month to $13.99/month. The price change is global and applies to new sign-ups immediately; existing subscribers will see the new rate from their next billing cycle. However, as a direct trade-off, new Call of Duty games will no longer be added to Game Pass at launch — instead, they'll arrive approximately one year after release.
Just six months ago, in October 2025, Microsoft had aggressively raised the price of "Game Pass Ultimate" by 50%, pushing it from $20/month all the way up to $29.99/month. At the time, the hike was widely criticized by the gaming community, with many arguing that a $360 annual subscription undermined the core value proposition of Game Pass as an affordable, all-you-can-play gaming service.
Now, under new Microsoft Gaming CEO "Asha Sharma," who replaced industry veteran "Phil Spencer" in February 2026, the company has course-corrected. Sharma publicly acknowledged that Game Pass had "become too expensive for too many players," a statement she first made in an internal memo that was later reported by The Verge. The price cut follows through on that admission.
Game Pass Essential ($10/month) and Game Pass Premium ($15/month) tiers are unchanged. These tiers do not include day-one new releases. Hundreds of existing games, Xbox Cloud Gaming, online console multiplayer, in-game benefits, and existing Call of Duty titles remain accessible on the Ultimate tier.
The Call of Duty trade-off:
Even if you buy a new Call of Duty title at full price (which is $70) while on the new $22.99/month plan, you still come out $14 ahead annually compared to paying the old $29.99/month rate, assuming you're buying one COD title per year.
The last Call of Duty title to launch day-one into Game Pass was Black Ops 7 in late 2025, which became the second (and final) COD to receive that treatment. Going forward, players who want to play new Call of Duty releases on launch day will need to purchase the game separately, priced at approximately $70 per title.
Why Did Microsoft Cut Game Pass Prices?
As I said in from the start, the October 2025 price hike generated enormous backlash. Microsoft's Game Pass subscriber count had last been publicly confirmed at 34 million in early 2024, and the company stopped disclosing figures thereafter, which means this was a sign that growth had stalled.
Microsoft's gaming unit revenue fell approximately 10% year-over-year in recent earnings, with Xbox content and services coming in below internal projections. Hardware sales also declined 32%. The company even took an unspecified impairment charge in its gaming business.
This price drop is a direct consequence of Asha Sharma's leadership. She cancelled the mocked "This Is An Xbox" marketing campaign, and internally declared that Game Pass had become "too expensive." Also, let's not forget their competitors like "PlayStation Plus" and "Nintendo Switch Online," who are offering competitive pricing.
Questions for You:
- What are your thoughts on the recent price change?
- Are you more likely to switch from Ultimate to PC Game Pass now that prices have shifted?
- Would you rather pay more for Day-One access or pay less and buy the games you want separately?
Let me know in the comments, where you can also provide the latest news so I can make a breakdown of it.