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Xbox Game Pass Faces Backlash After Major Price Hike and Tier Shake-Up

Microsoft’s popular subscription service, Xbox Game Pass, is at the center of controversy after sweeping changes were announced this week. With a 50% price increase to its Ultimate tier, a rebrand of existing plans, and growing industry pushback, subscribers and developers alike are voicing frustration over the service that was once hailed as the future of gaming.

Ultimate Tier Price Hike Sparks Anger

The headline change is the jump in pricing for Xbox Game Pass Ultimate, which now costs $29.99 per month instead of $19.99. Microsoft argues that the increase reflects added value, including an expanded library and improvements to cloud gaming. However, many subscribers view the move as a blatant attempt to squeeze more money from loyal users.

Reports emerged that cancellation pages were overwhelmed immediately following the announcement, suggesting that thousands of players attempted to cancel or downgrade their subscriptions at once. For many, the steep increase overshadowed any promised benefits.

Game Pass Tiers Rebranded

Alongside the price increase, Microsoft has overhauled the Game Pass structure:

  • Core has been rebranded as Essential.
  • Standard is now known as Premium.
  • Ultimate retains its name but becomes the only tier to guarantee day-one game releases.

While lower tiers will see some new benefits such as improved cloud support, the decision to lock early access titles behind the most expensive subscription has sparked fresh criticism. Fans argue this undermines the service’s original vision of broad accessibility.

Industry Voices Raise Concerns

Criticism isn’t limited to players. Prominent developers have warned about the long-term impact of Game Pass on the industry. The creator of Dishonored recently claimed that the subscription model has damaged the industry by diminishing direct sales and making developers dependent on service payouts.

A former Xbox VP added fuel to the fire, saying that Game Pass creates “weird inner tensions” between sales performance and subscription popularity. Developers now face difficult trade-offs when deciding whether to launch on the service.

Subnautica 2 Boycott Movement

The controversy has also extended to upcoming titles. Subnautica 2, once celebrated for joining Game Pass, is now caught in a storm after publisher Krafton allegedly stripped bonuses from developers and fired key leadership. The move has triggered boycott calls from fans, with some accusing Microsoft and its partners of prioritizing profits over the well-being of studios.

This case has become emblematic of wider fears: that Game Pass, while convenient for players, may be enabling practices that hurt the very developers making the games.

The Future of Xbox Game Pass

Once seen as the best deal in gaming, Xbox Game Pass now faces a trust crisis. The combination of steep price increases, restructured tiers, and growing industry discontent has shaken confidence in Microsoft’s strategy.

Whether the service can maintain its reputation depends on how subscribers react in the coming months. If cancellations continue at a high rate and developers grow more vocal, Microsoft may be forced to rethink its approach. For now, though, Xbox Game Pass finds itself in the middle of one of the biggest controversies in its history.