Microsoft announced on Tuesday that it is reducing the monthly fees for its Game Pass subscription tiers and changing how new Call of Duty entries are distributed through the service. The company said Xbox Game Pass Ultimate will now be priced at $22.99 per month, down from $29.99, while PC Game Pass will cost $13.99 per month, a reduction from $16.49.
Alongside the price adjustments, Microsoft said that future Call of Duty games will not appear on Game Pass at release. Instead, new Call of Duty titles will be added to Game Pass services roughly a year after they launch. The change reverses the strategy Microsoft pursued after its $69 billion acquisition of Activision Blizzard, when the company planned to use day-one availability of Call of Duty to attract subscribers to Game Pass.
The company framed these moves as the first major strategic shift under Asha Sharma, who assumed leadership of Microsoft’s gaming unit following a February leadership shake-up that included the exits of Phil Spencer and Sarah Bond. Microsoft’s Xbox brand has lagged competitors Sony and Nintendo after years of prioritizing subscription services and cloud gaming, the company said, a run that brought persistent increases in Game Pass pricing, falling console sales and a shortage of standout new titles.
Microsoft’s internal discussions about pricing have been publicized in recent reporting. The Verge, citing an internal memo to Xbox employees, said Sharma acknowledged that Game Pass had become too expensive for many players.
By reducing subscription fees and postponing day-one inclusion of major franchises, Microsoft is altering a central element of the playbook it laid out after the Activision Blizzard deal. The company did not add further details about timing beyond stating that new Call of Duty releases will reach Game Pass about a year after release, nor did it provide additional commentary on how the price cuts are expected to affect subscriber counts or revenue.
Context and implications
Microsoft’s revisions touch on its subscription strategy and the competitive positioning of Xbox. The price cuts lower the immediate monthly barrier for Game Pass, while the delayed availability of flagship titles like Call of Duty changes the early content value proposition for prospective and existing subscribers.