Highlights
- Xbox Game Pass apparently drops to 30M subscribers, down from 34M in 2024.
- Microsoft's internal goal of 77M subscribers by 2026 now appears well out of reach.
- Xbox cites slower Game Pass growth as it restructures the business and cuts 3.2K jobs.
Xbox Game Pass has reportedly dropped to around 30M subscribers, according to The Wall Street Journal. The figure is well below Microsoft's internal goal of 77M subscribers by 2026, which was revealed during the Activision Blizzard legal proceedings. The report surfaced as Microsoft announced 3.2K layoffs across Xbox, linking the move to slower-than-expected growth in its gaming business.
Microsoft has not officially updated Game Pass subscriber numbers since 2024. However, The Wall Street Journal, citing a person familiar with the matter, noted that the service has fallen from 34M subscribers.
That total was reported after Xbox Live Gold members were moved into Game Pass.
Xbox Game Pass Growth Falls Behind Expectations
Game Pass launched in 2017, reached 25M subscribers in 2022, and grew to 34M by 2024. The latest report suggests it has since lost around 4M subscribers.
Several factors appear to have slowed growth. Weaker Xbox console sales and repeated Game Pass price hikes contributed to slower subscriber growth. More recently, Microsoft lowered prices for the Ultimate and PC tiers to improve the service's value.
Xbox Links Restructuring to Slower Game Pass Growth
In a memo to employees, Xbox CEO Asha Sharma stated that Game Pass, multi-platform services, and content investments "did not grow at the pace we expected." She added that Xbox's core business weakened while the company continued to increase investment. Sharma also called the current market "the most severe hardware crisis in its history."
Microsoft confirmed that 1.6K employees were laid off immediately. Another 1.6K roles will be eliminated during the current fiscal year (FY). Compulsion Games, Ninja Theory, Double Fine Productions, and Undead Labs will leave Xbox under the restructuring, while the company clarified that no previously announced first-party games have been canceled.
Reports also suggest Microsoft has paused signing new Xbox Game Pass deals with third-party publishers and developers, though no specific companies have been identified. The reset has also affected external publishing plans, with Xbox ending its Project Fantasy publishing agreement with IO Interactive last week.
Microsoft further acknowledged that it will continue supporting Game Pass with new releases. However, future Call of Duty titles are no longer expected to launch as day-one additions.
