Xbox recently increased the price of its Game Pass Ultimate, sparking major controversy. The gaming giant unexpectedly announced a 50 percent price hike, which caught many by surprise, and things aren’t looking great for Xbox right now.
Price hikes are rarely welcomed, no matter the circumstances. While a company might get away with raising prices once, Xbox has done it twice in just over a year, which, in my opinion, is unacceptable.
This raises a serious question: Can the company survive this major price hike, or has it just dug its own grave?
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Xbox Was Already Struggling, Hardware-Wise
Xbox Series X and S haven’t been selling in large quantities, and that is nothing new. Sony has completely dominated the competition, with such a massive lead in sales that comparisons almost feel pointless. At times, it may seem like Xbox has given up on the hardware market entirely, but it hasn’t.
The gaming giant is actively working on its next-gen console, which is expected to launch in 2026. If it arrives earlier, you already know the kind of impact that could have. That said, for now, Xbox is clearly struggling when it comes to hardware, but in other areas, things appear to be going smoothly.
Hardware sales dropped by 22% in Q4 2025, but software sales and gaming revenue grew by 13% and 10%, respectively. So, while Xbox has its challenges, it’s certainly not struggling across the board, or at least, it wasn’t.
Game Pass reached a new milestone this year, generating $5 billion in revenue for the first time. Despite that success, Microsoft has introduced a significant price hike for Game Pass Ultimate. In my opinion, this decision could backfire.
While the company has seen strong profits from software sales, that momentum may not continue into the next quarter. I have several reasons to believe this, and I will explain why.
Game Pass Ultimate 50% Price Hike Is Backfiring
People are too fixated on the 50 percent price hike, and I can understand why. The subscription service now costs almost half the price of a full game. If you’re only interested in playing one specific title through the service, it may not be worth it. In that case, buying the game you’ve been looking forward to might be the better option.
That way, you actually own the game and can play it whenever you want. Most people don’t play hundreds of games a year. I usually play around four to five new titles annually, then return to my favorite classics if I have time. I know several others who follow the same pattern.
So, the Ultimate tier costing $360 a year is roughly the same as buying five $70 games and still saving $10. Of course, you could get even more games if you’re playing lower-priced titles.
I am not the only one who thought about this, of course. Many subscribers rushed to cancel their subscriptions as soon as the price hike was announced. There were so many cancellations happening at once that the website crashed.
That says a lot about the decision that Xbox made. It may not roll back the price, but several retailers are still offering Game Pass Ultimate at the old rate. Stores like GameStop and Amazon are selling the Ultimate tier for $20. If you buy from Amazon, Best Buy, or Target, you can stack these codes for up to 12 months.
Even Industry Veterans Are Against It
There are many industry veterans and YouTubers who have raised their concerns against the Game Pass Ultimate price hike. One fan revealed on X that they had the highest tier subscription since 2007. That fan canceled the subscription as soon as they heard about the price hike.
YouTubers like The Act Man have canceled their subscription. TheOnlyZenny on X made a thread asking everyone to send screenshots of their canceled subscription.
This was the first gen where I didn’t buy an Xbox but I was still using Game Pass on PC, Now I am cut off from this brand & I have 0 desire to ever own an Xbox console or service again.
– SynthPotato
What surprised me the most was that Jez Cordern, one of the biggest followers of Xbox, canceled his subscription. He is a pro-Xbox journalist, and even he is against this move. He even posted on X to “vote with your wallet”, which says a lot about the situation.
Some reports have revealed that the price of the Ultimate tier has doubled in Brazil. In countries like South Africa, some users have claimed it has increased by more than double. This price hike is having a global impact, and on a massive scale, fans are beginning to boycott Xbox.
This Increase Isn’t The End Of The World
I do not support the price increase at all, but it is not as extreme as some people are making it out to be. PS Plus Premium costs $18, and it does not offer the same experience as Game Pass Ultimate. Yes, the price hike is significant, but look at what you are getting in return.
If you are someone who wants access to a large library of games and the ability to play first-party titles on day one without paying full price, then the Ultimate tier is still a great deal. However, if you already own a lot of games and are only interested in a few new releases, then buying those games individually might be the better option.
Sony rarely releases its first-party games on PS Plus, and it never adds them to the service on day one. In comparison, Xbox is offering much more. The Game Pass Ultimate price hike felt sudden and harsh because it was a steep 50 percent jump. If the company had raised the price to $25 instead, I think the reaction would not have been nearly as intense.
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Obaid Ur Rehman is a lifelong gaming enthusiast with a deep passion for writing about video games. While he enjoys all genres, he specializes in RPGs and Soulslike titles. After tackling some of the toughest bosses, he often unwinds with a cozy game to relax. Outside of gaming, Obaid enjoys watching anime, bingeing TV series, or staying active at the gym.
