Microsoft Faces Backlash Over Game Pass Price Hike

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Fans Cancel Subscriptions After Sharp Increase

Microsoft has come under fire from gamers after announcing significant price increases to its Xbox Game Pass subscription service. The cost of the popular Ultimate tier, which allows access to new releases on launch day, will rise from £14.99 to £22.99 per month—a jump of more than 50%.

Following the announcement, fans took to social media to express anger, with many reporting they had cancelled their subscriptions. Some users even said the Game Pass cancellation page had temporarily crashed due to high demand, although Microsoft has not confirmed whether the surge was responsible.

New Tiers and Expanded Library

As part of the changes, Game Pass will now be split into three tiers: Essential (£10 per month), Premium (£14.99), and Ultimate (£22.99). Essential is required for online multiplayer, while Premium offers a wider selection of titles. Ultimate, the most expensive option, grants access to Microsoft-owned studio games such as Call of Duty on their release date—a benefit previously seen as a major draw for subscribers.

To counter the backlash, Microsoft emphasized the expansion of its library, with blockbuster titles such as Hogwarts Legacy and multiple Assassin’s Creed games being added. The company said the restructure was intended to provide “flexibility, choice, and value” to players.

Industry Trends and Rising Costs

Gaming analysts point out that subscription models have become increasingly popular as development costs soar. According to the UK’s Entertainment Retail Association, both Xbox Game Pass and Sony’s PlayStation Plus expanded their user bases last year.

Ed Nightingale, deputy news editor at Eurogamer, noted that while subscriptions are still cheaper than buying multiple individual games, the sharp increase risks alienating consumers. “They want to be the favourites of gamers, but this feels anti-consumer,” he said, warning that players may be priced out of the hobby over time.

When Game Pass launched, it was billed as “the best deal in gaming.” But some gamers are now questioning whether it was simply too good to last, given rising development costs and the wider economic climate.

Wider Context: Consoles, AI and Market Pressure

The Game Pass increase comes on top of Microsoft raising the price of its Xbox consoles, accessories, and individual games earlier this year. Although the company cited “market conditions,” industry observers linked the move to rising costs and proposed tariffs under U.S. President Donald Trump. Sony and Nintendo have also increased prices, citing similar reasons.

Adding to frustration, Microsoft has cancelled several gaming projects and laid off around 9,000 staff this year. Analysts suggest that both price rises and job cuts are tied to the company’s multibillion-dollar investments in artificial intelligence, a strategy that has reshaped priorities across the business.

Microsoft has previously stated that Game Pass is profitable and recorded its strongest subscription revenue last year. Whether the new pricing model sustains that growth or sparks a long-term decline remains uncertain. For now, the backlash highlights a growing tension between rising industry costs and consumer affordability.

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