Microsoft just made the biggest pricing mistake in Xbox history. The company announced a massive 50% price increase for Xbox Game Pass Ultimate, jumping from $19.99 to $29.99 per month. So many angry subscribers rushed to cancel that Microsoft’s own cancellation website crashed under the pressure.
The announcement came on October 1, 2025, and within hours, “cancel Xbox Game Pass” became a trending search term worldwide. Players are calling this the final straw after years of gradual price increases.
The shocking new pricing structure
Xbox Game Pass now has three tiers with confusing new names. Microsoft renamed the existing plans to match PlayStation Plus branding:
- Essential Plan: $9.99/month (formerly Core)
- Premium Plan: $14.99/month (formerly Standard)
- Ultimate Plan: $29.99/month (50% increase from $19.99)
PC Game Pass also jumped from $11.99 to $16.49 per month. The only plans that didn’t increase were Essential and Premium, which kept their $9.99 and $14.99 pricing.
Players do the math and get angry
Xbox Game Pass Ultimate now costs $360 per year. That’s the same price as buying five full-priced $70 games annually. Many subscribers realized they don’t play enough games to justify the massive expense.
One Reddit user summed up the frustration perfectly: “I don’t even buy 5 games a year nowadays. The price is absolutely ridiculous.” Another added: “$360 is straight nuts. There is no savings here anymore for an average gamer.”
Microsoft’s website can’t handle the cancellation rush
The backlash was so immediate that Microsoft’s subscription management page crashed. Players trying to cancel or downgrade their subscriptions encountered error messages and loading failures.
“Looks like their site is actually having trouble processing subscription changes right now, probably from being overloaded with folks downgrading and canceling,” reported one frustrated user.
Some subscribers found workarounds by switching browsers. “It only worked for me on Edge,” one person explained. The website issues lasted several hours before Microsoft restored functionality.
Long-time Xbox fans jump ship
Even Xbox’s most loyal customers are walking away after decades of support. The price increase has pushed lifelong fans over the edge.
“I’m a 15 year Xbox fan and customer. I was already questioning the value a lot but kept it because of their gate keeping online play at $10/mo so why not pay the extra $10 for gamepass. The value is simply not there for $30/mo,” wrote one disappointed subscriber who cancelled their Ultimate subscription.
Another long-time fan shared: “Dear @Xbox, you’ve made it easy for me to decide to stop playing Xbox after more than 20 years.”
What Microsoft is offering to justify the price
Microsoft claims the $10 monthly increase reflects expanded value and new features. Ultimate subscribers now get:
- Access to over 75 day-one game releases per year
- Fortnite Crew (worth $11.99/month) starting November 18
- Ubisoft+ Classics (worth approximately $8/month)
- EA Play membership included
- Improved cloud gaming with 1440p streaming
- Up to $100 per year in Microsoft Store rewards
The additions sound impressive on paper, but many subscribers don’t want or use these extras. Fortnite Crew appeals mainly to younger gamers, while Ubisoft+ Classics offers mostly older titles.
Premium and Essential get some improvements
The middle-tier Premium plan ($14.99) now includes PC games for the first time. Previously, Premium subscribers could only play console games. The plan also adds unlimited cloud gaming access.
However, Premium subscribers must wait up to one year for new Xbox-published games (except Call of Duty, which they never get). This delay frustrates players who want day-one access to major releases.
Essential subscribers ($9.99) get expanded libraries and cloud gaming access, but the tier still feels like a way to paywall online multiplayer gaming.
Smart shoppers find ways to beat the price hike
Savvy gamers discovered that Amazon hadn’t updated its digital code pricing. Three-month Xbox Game Pass Ultimate codes still cost $59.99 on Amazon, while Microsoft charges the new monthly rate.
You can stack up to 36 months of codes to lock in the old pricing. Buying 12 three-month codes costs $719.88 total, compared to $1,079.64 at the new monthly rate. That’s a savings of $359.76 over three years.
Even buying just four three-month codes ($239.96) saves $120 compared to paying the new annual cost of $359.88.
The bigger picture behind the price increase
This isn’t Microsoft’s first Game Pass price hike. The company has steadily increased costs over the past two years:
- 2023: Ultimate went from $14.99 to $16.99
- July 2024: Ultimate increased to $19.99
- October 2025: Ultimate jumps to $29.99
Each increase has been met with subscriber backlash, but this 50% jump feels like a breaking point. Microsoft is testing how much customers will pay for gaming subscriptions.
Competition takes advantage of Microsoft’s mistake
GameStop immediately capitalized on the controversy. The retailer announced it would continue selling Xbox Game Pass Ultimate codes at the old $19.99 price “for now.” This public jab at Microsoft gained significant attention on social media.
PlayStation fans also pointed out that PlayStation Plus Premium costs only $159.99 annually compared to Xbox’s new $360 yearly price.
The subscription model reaches its limits
Xbox Game Pass was once called “the best deal in gaming.” At $9.99 per month in 2017, it offered incredible value for money. But repeated price increases have eroded that advantage.
Many subscribers are realizing they’d save money by simply buying the few games they actually want to play. The subscription model only makes financial sense if you play dozens of games per year.
What happens to existing subscribers
Current subscribers won’t see the price increase until November 4, 2025. New subscribers pay the higher rates immediately starting October 1.
Microsoft will automatically transition existing subscribers to the new tier names:
- Core subscribers become Essential (same price)
- Standard subscribers become Premium (same price)
- Ultimate subscribers stay Ultimate (but pay $10 more)
Microsoft’s response to the backlash
Xbox executives acknowledge that price increases are unpopular but defend the changes. They claim the expanded catalog and new partner benefits justify the higher costs.
“Price increases are never fun for anybody,” admitted one Xbox executive in response to the criticism. However, Microsoft shows no signs of reversing the decision despite the overwhelming negative reaction.
The future of Xbox Game Pass
This pricing disaster may force Microsoft to reconsider its Game Pass strategy. The service was supposed to grow subscriber numbers, but aggressive price increases are driving customers away instead.
Industry analysts worry that Microsoft is prioritizing short-term revenue over long-term subscriber growth. If enough people cancel, the company may be forced to roll back some price increases or offer promotional rates to win back customers.
For now, Microsoft appears committed to the new pricing structure despite crashing websites and trending cancellation hashtags. The company is betting that the convenience of Game Pass outweighs the sticker shock for most subscribers. Only time will tell if that gamble pays off.
