NEW DELHI, APRIL 21 — Microsoft has revealed a significant revamp of its Xbox Game Pass service, with subscription prices slashed by up to 50% and high-profile titles like *Call of Duty* no longer included from day one. This strategic shift, effective June 1, 2026, aligns with a new direction under gaming chief Matt Booty, who previously criticized Game Pass as "too expensive" in an internal memo that later surfaced.
The price reductions are substantial: Xbox Game Pass Ultimate will drop from $16.99 to $9.99 per month, the standard console tier from $10.99 to $6.99, and PC Game Pass from $9.99 to $5.99. Microsoft attributes these changes to rising costs and evolving consumer demands, though analysts suggest the move may also counter competition from Sony’s PlayStation Plus and Nintendo Switch Online.
A key adjustment is the removal of Activision Blizzard’s *Call of Duty* franchise from Game Pass’s day-one lineup. While current subscribers retain access to owned titles, new releases like *Call of Duty: Warzone 2.0* and *Call of Duty: Modern Warfare III* will no longer be available at launch, requiring separate purchase or third-party deals. This ends a near-decade partnership that began with Microsoft’s $68.7 billion acquisition of Activision Blizzard in October 2023.
A company spokesperson framed the changes as necessary for sustainability and alignment with Microsoft’s shifting content strategy. While replacements for removed titles haven’t been announced, insiders hint at a stronger focus on indie games and Microsoft’s first-party exclusives, such as *Halo Infinite 2* and *Forza Horizon 5: Reforged*.
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Microsoft Slashes Xbox Game Pass Prices by 50% and Drops Day-One *Call of Duty* Releases
The price cuts arrive as Game Pass subscriber growth slows, with active users declining 12% in Q1 2026 compared to the prior year, per Newzoo data. The removal of major franchises like *Call of Duty* and *Starfield* (which left Game Pass in March 2026) has sparked concerns about the service’s value. However, Microsoft executives defend the strategy, prioritizing long-term profitability over short-term user numbers.
Rishi Malhotra, an analyst at Gaming Industry Insights, argued that Microsoft is prioritizing profit margins over broad adoption. “By lowering prices but cutting high-cost titles, they’re betting on loyalty and first-party exclusives to sustain engagement,” he said.
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Matt Booty’s Vision: A More Sustainable Xbox Game Pass Strategy
The revamp also introduces a new “Game Pass Lite” tier at $3.99 per month, offering access to a rotating catalog of older titles but excluding new releases. Existing subscribers will receive a three-month grace period before the changes take effect.
As the gaming industry continues to transform, Microsoft’s latest strategy reflects its push to balance accessibility with financial sustainability—a dynamic reshaped by the 2023 Activision Blizzard merger and the growing influence of cloud gaming.
