Canadians of a certain age may fondly remember the Friendly Giant urging them to “look up—way up” at the start of each of his beloved children’s television segments. Today, those words echo in my mind following Microsoft’s recent announcement regarding a significant overhaul of its Game Pass program, which now comes with a considerably higher price tag.
Game Pass Transformation
In a statement that brings to mind Phil Spencer’s optimistic remarks about Xbox’s future amidst the backdrop of 9,000 layoffs, the Xbox team proclaimed that “creator participation and player engagement in Game Pass are at an all-time high.” However, they also acknowledged the potential for Game Pass to connect even more players with the creators and games they cherish.
Consider the Elder Scrolls Franchise bundle, which includes Morrowind, Oblivion, Skyrim, Redguard, Battlespire, and TESO, priced at approximately —less than one-fifth of the annual cost of Game Pass Ultimate. Alternatively, Microsoft has touted the availability of Silksong, one of the year’s most anticipated games, on Game Pass Ultimate from day one. Yet, as many have pointed out, it can be purchased on Steam for just , or rented for a month at .
Furthermore, players can enjoy Call of Duty: Black Ops 7 for a couple of months, or indefinitely, for roughly the same expenditure. The response to the “What’s changing with Xbox Game Pass” video on YouTube has been telling; within six hours of its release, it garnered 5,700 likes but over 15,000 dislikes.
While Microsoft asserts that every gamer has unique preferences, it is evident that Game Pass is no longer the unequivocal, if-you-game-you-should-have-this offering it once was. The backlash against these changes has been palpable, with industry analyst Mat Piscatella noting that a recent Circana survey identified cost as the primary reason for Game Pass cancellations.
a month for Game Pass Ultimate is a HEFTY price jump.
According to Circana’s Q3 2025 Future of Video Games Custom Survey, the leading reasons cited by U.S. users who have opted out of Game Pass include:
- Cost concerns
- Value perception
- Content availability
Despite the backlash, some industry experts have suggested that this shift may have been unavoidable. PC Gamer’s Wes Fenlon predicted back in 2022 that “Game Pass can’t stay this good a deal forever,” foreseeing a gradual decline in value as subscriptions become as ubiquitous as water or Netflix.
Criticism has intensified, with Arkane co-founder Raphael Colantonio labeling Game Pass as an “unsustainable model” that relies heavily on Microsoft’s financial backing. Former Sony Worldwide Studios head Shawn Layden expressed concerns that subscription services like Game Pass could pose a “danger” to the industry, potentially reducing developers to “wage slaves.”
Additionally, the implications for retail game sales cannot be overlooked, as many developers rely on traditional sales for revenue. Former Xbox Games Studios vice president Shannon Loftis remarked that “the majority of game adoption on GP comes at the expense of retail revenue.” While Game Pass may have served as a strategic loss leader during Microsoft’s competitive push in the console market, its viability is now called into question.
The dilemma is clear: to ensure sustainability, Microsoft may need to raise prices further, yet doing so risks alienating the very audience that made Game Pass a success. This precarious balancing act raises the possibility that the skeptics were right all along—the subscription model may not be the panacea it was once thought to be.
