Xbox Is Pricing Out Its Players

Xbox‘s recent strategy and changes are hurting its players and forcing them to make tough decisions. Xbox is one of the biggest players in the industry, but it is struggling to earn that right. The company pulled itself out of the mud with the Xbox One after a disastrous reveal that killed all the momentum built by the Xbox 360. Things like Xbox Game Pass combined with lucrative acquisitions to fill out the subscription’s library changed the whole philosophy with the brand. Not only that, but Microsoft made a smart pivot to bring things day and date to PC, allowing an opportunity to reach more people.

There were still issues to be sorted out, such as problems with marquee franchises like Halo, but as a platform, things were on the right track. Even if Xbox was behind PlayStation, it was okay because Xbox was trying to find a new way to compete beyond having a similar console with different flashy games. Everything was the same and packaged in a slightly different way, but Xbox found a way to shake things up and offer something unique. By 2020, Xbox Series X|S and Xbox Game Pass was seen as a big part of the platform’s future, but things have gotten bleak in the last 12 months or so.

Xbox Used to Be An Accessible Platform

At the start of the generation, one of the selling points of Xbox was how accessible it was. You could get an Xbox Series X for $500 and buy your games at $60 – $70 a pop, but for one of the first times, there were more options to entering the next-generation of gaming. Microsoft unveiled the Xbox Series S, a $300 machine that was weaker, but guaranteed to run every game released this generation. Some developers have reportedly grown irate with the requirement that every game be compatible with the Series S, but it has ultimately paid off for the players who needed a cheap entry point to the generation.

When paired with a $20 Xbox Game Pass subscription, you were entitled to major first-party games at no extra cost on release day such as Halo Infinite, Forza Horizon 5, and Starfield. Massive third-party games like Grand Theft Auto V also rotated in and out of the library in addition to smaller indie games, giving players a huge bang for their buck. Players could even get on a payment plan through Xbox to get a console and 24 months of Game Pass for just $24.99. While I wouldn’t personally advise anyone to a payment plan for a console, it did help make things accessible.

Game Pass also benefited from other things such as special discounts on DLC, games, and access to EA Play, a service that gives you access to older EA games and 10-hour trials to new releases. However, all of this has started to become far less valuable.

In May 2025, Xbox increased the prices on all hardware. The base model of the Xbox Series S went from $300 to $380 and the standard Xbox Series X went from $500 to $600. This came in addition to Microsoft announcing that first-party releases such as The Outer Worlds 2 would be $80 starting in the Fall. This would’ve also made Call of Duty: Black Ops 7 an $80 game. As you might imagine, this didn’t go over well with fans. Xbox backed off the heightened game prices, but kept the price increase on consoles.

The PR disaster kept going as July 2025 saw the closures of multiple Xbox studios following mass layoffs. This also resulted in the cancellations of highly anticipated games like Perfect Dark from The Initiative, a studio that didn’t release a single game in the 7 years it existed. Just when we all thought the storm was over, Xbox announced in September 2025 that it was raising the prices on Xbox consoles again. Now, the Xbox Series S would be $400 and the Xbox Series X would be a whopping $650.

Surely that would be the end of it, though… right? Wrong! Just weeks later, Xbox announced that it was raising the price of Xbox Game Pass Ultimate to $30 a month which amounts to $360 a year, $60 more than what the Xbox Series S cost when it released in 2020. Xbox tried to soften the blow with new benefits like Ubisoft Classics and Fortnite Crew, but it didn’t change the fact that Game Pass was now the most expensive mainstream entertainment subscription, minus live TV add-ons like YouTube TV or Hulu with live TV.

Bloomberg reported that a big reason for this price increase was that Call of Duty lost $300 million in game sales last year due to it now being available on Xbox Game Pass at release. Xbox also didn’t see the growth in Game Pass that it wanted either. That loss in overall revenue meant that Xbox had to offset it by charging another $10 to Game Pass. While Call of Duty is huge, this is a huge blow to those who don’t care about that franchise and are now more or less being penalized for Microsoft’s pricey acquisition of Activision.

Xbox’s new Asus ROG Ally handheld is also a black hole for the wallet. The new Xbox partnered handheld costs as much as $1,000 for its most expensive version or $600 for its cheapest version. Of course, this is more of an add-on and not necessary to partake in the Xbox ecosystem, but it is significantly more expensive than competitors. A Steam Deck ranges from $400 to $650, which makes it a great option for those looking to play on a handheld.

The Rog Ally is a PC handheld, so it can play games from outside of the Xbox ecosystem, but it does benefit from those who want to use Game Pass. However, it becomes far less valuable with the increased Game Pass price point. While I understand things like tariffs can drive up prices, Xbox President Sarah Bond recently stated that Game Pass is profitable and hit $5 billion in revenue last year. Do they really need another $10/per Ultimate subscriber in order to create better margins in addition to hikes on hardware? I personally think it’s all a bit steep.

Xbox Has Cemented Its Place Behind PlayStation This Generation

I am not one for console wars, but Xbox does need to be able to compete with PlayStation somehow in order to keep players. Players drive everything as they’re the ones buying hardware, games, and subscriptions. Without them, no money will be generated. We’re still probably a ways away from people fully embracing cloud gaming through smart TVs and tablets, something Xbox is hoping to eventually achieve. Xbox needs to stay alive long enough for that to happen, though.

If you make the barrier to entry so unbelievably expensive, then Xbox is going to have a really hard time getting new people in and it’ll likely push people to play elsewhere. Existing users are also cancelling their Xbox Game Pass subscriptions and others are saying they will be investing more into PlayStation as Xbox grows unstable. Given Xbox has built a platform around having games from every generation playable on one system, some fans may be wary that they may not have a library in a generation or two due to Xbox being on such shaky ground.

I primarily play on Xbox and I want to see this platform succeed, but right now, all of these moves are scaring people away. I just hope that the next Xbox, if there really is one, can come back swinging and offer a great value for gamers everywhere.

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Xbox Made $21 Billion Last Year, But Needs You To Pay More For Games