Xbox Game Pass Shocker: Why Microsoft Just Raised Prices by 50% — And What It Means for You
Xbox Game Pass price increased by 50% in 2025. Discover new features, tier changes, and whether Game Pass Ultimate at $29.99/month is still worth it.
GAMING INDUSTRY NEWS
Hussain
10/2/20252 min read
In October 2025, Microsoft announced a major overhaul to Xbox Game Pass — and the most shocking change is the 50% increase in the Ultimate plan’s price, jumping from $19.99 to $29.99 per month. This isn’t just a small adjustment; it’s a complete restructuring of the Game Pass model with new tiers, rebranded names, expanded features, and upgraded cloud gaming performance.
The Xbox Game Pass tiers have been reshaped: Core becomes Essential, Standard becomes Premium, and Ultimate remains at the top with additional perks. While lower tiers keep their old pricing in many regions, the Ultimate and PC Game Pass subscriptions are now noticeably more expensive.
Community Backlash
Many players feel the 50% price hike is too steep for the added perks.
Gamers argue that “more games” doesn’t always equal “more value” when there isn’t enough time to play them.
Social media saw a surge in cancellations as players vented about Microsoft’s aggressive move.
Essential and Premium tiers may face cloud gaming wait times and limited day-one access, making them feel like diluted versions of Ultimate.
Why Did Microsoft Increase Xbox Game Pass Prices?
Rising Costs of Cloud Gaming
Running servers, licensing games, and managing global infrastructure costs are huge. Microsoft is adjusting prices to keep the subscription sustainable.
Monetizing Heavy Users
High-engagement players who use cloud gaming daily and download dozens of titles create higher operating costs. The new pricing pushes these users toward the Ultimate tier where the value matches the usage.
Tier Segmentation
The new structure creates a clear value ladder:
Essential → budget-friendly entry plan.
Premium → balanced middle option.
Ultimate → premium service with full benefits and day-one access.
Balancing Game Sales
By raising the price of unlimited access, Microsoft also reduces the risk of Game Pass cannibalizing traditional game purchases, especially for major AAA releases.
In conclusion, Microsoft’s Xbox Game Pass price increase has created a divided response within the gaming community. Some players view the added features such as improved cloud performance, bundled extras, and expanded libraries as worthwhile trade-offs for the higher cost. Others feel the jump is too steep, especially for those who cannot fully utilize the vast catalog of games. Community feedback reflects a blend of frustration, disappointment, and cautious optimism, with some choosing to cancel their subscriptions while others remain committed for the day-one releases and premium benefits. Ultimately, the value of the new pricing depends on each gamer’s habits and expectations, making this one of the most widely discussed changes in subscription gaming to date.