Analysts react to Microsoft's Xbox Game Pass price drop from CEO Asha Sharma, believe it "should help subscriber numbers grow" — "Not surprising at all"

One of the biggest pieces of Xbox news we've gotten since Phil Spencer's retirement and Asha Sharma stepping up as the brand's new CEO in February was her decision to slash the price of Xbox Game Pass, and Xbox Game Pass Ultimate in particular. Last week, she reduced the monthly cost of an Ultimate subscription from $29.99 to $22.99, which is a major price cut.

The price drop was nearly a full reversion of the price hike we got in October last year that saw Game Pass Ultimate's cost rise from $19.99 to $29.99, and has been received very positively by fans — even though it came with the drawback of losing day-one Xbox Game Pass access to new Call of Duty games.

Alongside an Achievements overhaul, other new features, the end of "Microsoft Gaming," and a huge manifesto about Xbox's future, it's been seen as a sign that Sharma will listen to and act on community feedback well moving forward.

Notably, industry analysts have reacted to the Game Pass price change as well, with Circana's senior director and video game advisor Mat Piscatella and Piers Harding-Rolls of Ampere Analysis both speaking with GamesIndustry.biz to share their thoughts. Both agree that Call of Duty did little to bolster Xbox Game Pass subscriber numbers as Microsoft wanted it to.

"It was clear from very early on in the Call of Duty on Game Pass experiment that it did not lead to a significant increase in Xbox console sales or even subscriptions. So, this change is not surprising at all," Piscatella commented. "A little overdue, perhaps. But not surprising."

Harding-Rolls added that "the commercial reasoning for pursuing a subscription-first strategy for new releases the size of CoD has not been realized," and while "Its inclusion in Game Pass was hoped to turbo-charge the service ... these short-term intense boosts of subscribers taking advantage of cheaper access to one of the most popular premium games available have not been able to be sustained for the long term."

Interestingly, the two have differing opinions about how Game Pass availability has affected Call of Duty sales, with Harding-Rolls commenting that "Microsoft was leaving a substantial amount of revenue on the table through a loss in premium sales." Previously, it's been reported that Microsoft lost $300 million in Call of Duty sales due to Game Pass.

Piscatella, however, argues that "The data has never suggested to me that Call of Duty's shift into Game Pass had as big an impact on sales of the game," and that he's "certainly not convinced at all that the inclusion of Call of Duty on Game Pass on day one had any significant impact on sales of the game on, say, PlayStation platforms."

"If future versions of Call of Duty deliver the experience its players want, then sales will thrive regardless of its inclusion or exclusion from Game Pass," he added.

The two coalesce once more with their views on the price drop's expected effect on Game Pass subscriber counts, with both analysts predicting that the lower cost will drive growth to Microsoft's service in 2026. "I think the price reduction should help subscriber numbers grow," Piscatella said. "Although, I am doubtful it will lead to higher Game Pass spending short-term given the discount. But we'll see."

Harding-Rolls believes we "will see Game Pass ARPU [Average Revenue Per User] rise once again in 2026, with a reduced chance of subscriber churn compared to the significant price hikes implemented in October 2025." He also notes that while Call of Duty's move away from day-one access doesn't mean day-one access for Game Pass titles in general is at risk, it does indicate Microsoft may be willing to take a similar "windowing" approach with other large IPs.

Do you agree with the analyses of Piscatella and Harding-Rolls? How do you feel about the Xbox Game Pass price cut and what it means for the wider Xbox business overall? Share your thoughts below.

Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.