Microsoft has announced a major update to its Xbox Game Pass subscription service, including a substantial price hike for its top-tier plan. The company has increased the price of the Xbox Game Pass ‘Ultimate’ subscription from $19.99 per month to $29.99 (~ 50% rise), effective October 1, 2025. According to the company, the change reflects the growing value of the service, which now includes access to more day-one game releases, improved cloud gaming, and other additional perks for subscribers. This also comes as the Redmond-headquartered company’s gaming division is facing tough times and undergoing notable internal restructuring.
Along with the price adjustment, the tech titan has also restructured the Game Pass subscription tiers. The former ‘Core’ plan is now renamed ‘Essential’ and is priced at $9.99 per month, while the previous ‘Standard’ plan has been rebranded as ‘Premium’ and costs $14.99 per month. Microsoft claims that these changes are intended to simplify the subscription options and make it easier for players to choose the tier that best fits their gaming needs and budget.
Meanwhile, the price increase comes with significant improvements, particularly for subscribers to the Ultimate tier. The plan now offers access to over 75 games on their release day each year. This means that highly anticipated titles, including ‘Call of Duty: Black Ops 7‘, ‘Ninja Gaiden 4’, and ‘The Outer Worlds 2’, will be available to Ultimate subscribers immediately at launch. The Ultimate tier also includes Ubisoft+ Classics (a Fortnite Crew membership with monthly V-Bucks and battle passes) and upgraded cloud gaming with support for 1440p resolution and improved streaming quality.
The Premium and Essential tiers are also getting updates to offer more value. Premium subscribers (while not receiving day-one Xbox releases) can access over 200 games on Xbox and PC, enjoy unlimited cloud gaming, and earn up to $50 in rewards each year. The Essential plan gives access to more than 50 games, cloud gaming, and rewards of up to $25 annually.
The timing of the latest development is particularly notable as the company has witnessed multiple rounds of job cuts in its gaming division, especially following its $68.7 billion acquisition of Activision Blizzard in 2023. For example, around 1,900 positions were cut across Xbox, Bethesda, and Activision Blizzard in January 2024, over 300 more in June 2025, and about 9,000 jobs (~ 4% of its global workforce) were reduced in July 2025. While gaming revenue has grown, Xbox hardware sales have struggled, with a 42% drop in Series X and S revenue by mid-2024 and only 8.3 million units sold in Europe by early 2025. Even the tech giant’s capital spending increased 53% to $21.4 billion in Q3 FY2025.
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