Microsoft Expected Game Pass Would Have 77 Million Subscribers by Now but It Reportedly Only Has 30 Million, as Xbox Boss Admits the Strategy Has Failed

Xbox CEO Asha Sharma has admitted Game Pass has failed to turn arsenic Microsoft had expected, with reports indicating it is tens of millions of subscribers abbreviated of erstwhile targets.

The Wall Street Journal said that Microsoft had expected Game Pass subscriptions to deed astir 77 cardinal this year, but it presently has lone astir 30 million. As revealed during the FTC vs Microsoft proceedings of 2023, Microsoft had hoped for 100 cardinal subscribers by 2030, which seems precise improbable astatine this stage.

Internal Xbox Game Pass descent revealed arsenic portion of the FTC proceedings with Microsoft. Image credit: Wccftech.

This week, Microsoft announced 3,200 unit astatine Xbox are acceptable to suffer their jobs this fiscal year, with 1,600 going present and the remainder to travel — leaving thousands of employees with an anxious hold that could resistance retired for months.

As portion of the cuts, Microsoft has jettisoned 4 studios which were brought successful to bolster Game Pass with caller games nether the Phil Spencer era, with different workplace successful negotiations to beryllium sold oregon unopen down.

In an email to staff, Sharma admitted Microsoft’s gaming strategy had failed, and a cardinal portion of that nonaccomplishment had to bash with Game Pass.

“Our concern contiguous is not healthy,” Sharma said. “We are operating astatine margins that are 3-10x little than comparable level and publishing businesses. We entered Gen 9 with a smaller instal basal and a higher outgo structure. To grow, we stake connected Game Pass, multi-platform, and a broader portfolio of content. While those businesses person created meaningful value, they did not turn astatine the gait we expected. As that happened, our halfway concern weakened, and we added much teams, much investment, and much time, hoping for a amended outcome. And present the manufacture is facing the astir terrible hardware situation successful its history. We indispensable reset Xbox.”

The full constituent of Game Pass is that it provides tremendous worth to subscribers via an expanding room of games, boosted by large time 1 launches from Xbox studios. Microsoft invested immense sums successful acquiring contented for Game Pass, including an eye-watering $69 cardinal connected Activision Blizzard. Spencer hoped to boost Game Pass subscribers by launching caller Call of Duty games time one. But subscriber numbers person failed to grow, with console numbers successful peculiar hitting a wall.

Through it all, Microsoft’s Game Pass strategy has near galore scratching their heads. Spencer accrued prices by 50% successful October past twelvemonth successful a determination existent Xbox main strategy serviceman Matthew Ball precocious revealed had caused Game Pass to “shed millions of subscribers implicit the span of a fewer months.”

The nonstop fig of subscribers Microsoft had successful aboriginal 2026 is unclear, but we bash cognize Game Pass had astatine slightest 34 cardinal members arsenic of February 2024. By July 2025, Xbox Game Pass gross had reportedly reached astir $5 cardinal for the archetypal time.

One of the archetypal decisions Sharma made aft replacing Spencer was to chopped the terms of Game Pass and propulsion Call of Duty retired arsenic a time 1 title. Sharma precocious told Bloomberg that Xbox had "been capable to reset Game Pass aft an eight-month decline." "It’s present returned to maturation and expanding retention," she added, "and astir importantly, we're starting to get backmost to being person to our players and our community."

What present for Game Pass? With Double Fine, Compulsion, Ninja Theory, and Undead Labs each exiting Microsoft ownership and nether nary work to motorboat their aboriginal games connected Game Pass, we whitethorn not spot State of Decay 3, Senua, and immoderate Double Fine and Compulsion person up their sleeves motorboat connected the subscription service.

How does Microsoft turn Game Pass with what it’s got? If adjacent caller Call of Duty games neglect to turn subscriber numbers astatine an acceptable rate, what can? Could we spot Microsoft propulsion much of its games retired of Game Pass arsenic time 1 titles, hoping for much nonstop gross instead? Will Bethesda's The Elder Scrolls 6 motorboat time 1 connected Game Pass? Will the adjacent mainline Halo game? Could we spot Game Pass go much similar Sony’s PlayStation Plus, which does not motorboat first-party games time one?

Is it clip to admit that Game Pass has failed?

Wesley is Director, News astatine IGN. Find him connected Twitter astatine @wyp100. You tin scope Wesley astatine [email protected] oregon confidentially astatine [email protected].