Microsoft Cuts Game Pass Prices but Delays Call of Duty Releases by a Year

Game Pass Ultimate has become too expensive for too many players
Microsoft's new Gaming CEO Asha Sharma explained the reasoning behind the subscription price cuts announced Tuesday.
Mark

So Microsoft is cutting prices but holding back Call of Duty. That seems contradictory—why would you make the service cheaper if you're removing one of its biggest draws?

Mimi

It's not really contradictory if you think about it as two separate audiences. The price cut is for people who were on the fence about subscribing at all. The Call of Duty delay is about protecting the people who will pay full price for a new game on day one.

Luke

But we should be clear about what we don't know. How many subscribers does Microsoft actually have? What's the churn rate? We're taking Sharma's statement that the service was "too expensive" at face value, but that could mean different things.

Mark

Fair point. So the delay—is that a permanent policy, or just for this year's releases?

Mimi

The announcement says "beginning this year," which suggests it's the new standard going forward. New Call of Duty games will launch elsewhere first, then come to Game Pass about a year later.

Luke

Right, but "about a year" is vague. Is it exactly twelve months? Is it tied to the holiday season? And we don't know if this applies to every Call of Duty release or just mainline entries.

Mark

What does this mean for players who want to play the newest Call of Duty on day one?

Mimi

They'll have to buy it separately, on PlayStation, Xbox, or PC—not through Game Pass. The subscription service becomes a way to play older Call of Duty games and everything else, but not the newest one.

Luke

Which is a real change from the pitch Microsoft made when it acquired Activision. The regulatory argument was partly that Game Pass would give players more access to these games. Now they're explicitly delaying access.

Mark

Does the price cut make up for that?

Mimi

Depends on the player. If you're someone who plays a lot of different games and doesn't need the newest Call of Duty immediately, the lower price is a win. If Call of Duty is why you subscribed, you're paying less but getting less of what you wanted.

Luke

And we should note: this is Asha Sharma's first major move as Gaming CEO. That matters for context, but it also means we don't yet know if this is a one-time adjustment or the start of a broader strategy shift.

  • Game Pass Ultimate drops nearly $7 a month and PC Game Pass sheds over $2, offering real relief to subscribers who had begun to feel priced out of Microsoft's ecosystem.
  • The trade-off arrives immediately: new Call of Duty titles will now sit behind a roughly one-year delay before joining the service, a reversal of one of Game Pass's most celebrated promises.
  • Asha Sharma, only weeks into her role as Gaming CEO following Phil Spencer's departure, is already reshaping the division's identity — framing affordability as a moral obligation to a global, budget-diverse player base.
  • Microsoft is threading a needle between two competing imperatives: keeping subscribers engaged with lower prices while ensuring its most valuable franchise still generates full-price sales before entering the subscription pool.
  • A Call of Duty film adaptation directed by Pete Berg and scripted by Taylor Sheridan, set for 2028, signals that Microsoft is building the franchise into a multi-platform revenue engine well beyond the subscription debate.

In a move that reflects the enduring tension between accessibility and monetization, Microsoft has lowered the cost of its Game Pass subscriptions while simultaneously stepping back from its promise of day-one Call of Duty access — a pairing of gestures that reveals how even the most powerful platforms must negotiate between the players they serve and the franchises they protect. Under new Gaming CEO Asha Sharma, the company is quietly acknowledging that no single model can hold every kind of player, and that the economics of blockbuster gaming demand a longer runway than subscription culture typically allows. It is, in the oldest sense, a story about who gets in the door, and at what price.

Microsoft announced two significant and seemingly contradictory changes to its Game Pass service on Tuesday. Xbox Game Pass Ultimate dropped from $29.99 to $22.99 per month, and PC Game Pass fell from $16.49 to $13.99 — meaningful reductions for a subscriber base that had grown increasingly vocal about affordability. At the same time, the company confirmed that new Call of Duty releases will no longer arrive on Game Pass at launch, instead waiting approximately one year before joining the service during the following holiday season. Existing titles in the library remain fully accessible.

The decisions mark the first major strategic moves from Asha Sharma, who stepped into the Gaming CEO role in February following Phil Spencer's exit. Sharma was direct about the reasoning behind the price cuts, writing on X that Game Pass Ultimate had simply become too expensive for too many players. Microsoft echoed that sentiment in an official statement, noting that its audience spans vastly different geographies, preferences, and financial realities.

The Call of Duty delay is the more complicated signal. The franchise — acquired through Microsoft's purchase of Activision — had been a cornerstone of the Game Pass value proposition. New entries will now launch on PlayStation and through retail first, migrating to the subscription service roughly twelve months later. The move protects the franchise's ability to generate full-price sales before entering a lower-cost ecosystem, even as Microsoft makes that ecosystem cheaper to access.

Rounding out the picture, Paramount Pictures is developing a Call of Duty film set for release in June 2028, directed by Pete Berg from a Taylor Sheridan script. Taken together, the price restructuring, the delayed releases, and the film adaptation suggest Microsoft is thinking about its gaming division not as a single product but as a portfolio — one that must balance subscriber growth, franchise economics, and cultural reach across multiple time horizons.

Microsoft is making two moves that pull in opposite directions. On Tuesday, the company dropped the price of Xbox Game Pass Ultimate from $29.99 to $22.99 a month, and cut PC Game Pass from $16.49 to $13.99. At the same time, it announced that new Call of Duty games will no longer arrive on either subscription tier at launch. Instead, the franchise's fresh releases will wait roughly a year before joining the service during the following holiday season. Existing Call of Duty titles already in the Game Pass library will remain available immediately.

The price cuts represent the first major business decision under Asha Sharma, who took over as head of Microsoft's gaming division in February after Phil Spencer's departure. Sharma framed the move as a direct response to subscriber concerns. "Game Pass Ultimate has become too expensive for too many players," she wrote on X. "We'll keep learning and evolving Game Pass to better match what matters to players." The company acknowledged in a statement that its player base spans different geographies, preferences, and budgets, and that no single model works for everyone.

The delay on Call of Duty represents a significant shift in how Microsoft will handle its most valuable gaming asset. The franchise, acquired through Activision, has been a centerpiece of Game Pass strategy since the deal closed. Now, new entries will launch exclusively elsewhere first—likely on PlayStation and through standard retail channels—before migrating to Microsoft's subscription service roughly twelve months later. Current Call of Duty titles will continue to be available to subscribers without restriction, and Game Pass Ultimate members retain access to hundreds of other games, online multiplayer, in-game benefits, and day-one releases across the broader catalog.

The timing of these announcements suggests Microsoft is balancing two competing pressures. Subscriber growth and retention demand lower prices; franchise revenue and publisher relationships demand that blockbuster releases generate full-price sales before entering the subscription ecosystem. By cutting subscription costs while delaying Call of Duty's arrival, Microsoft appears to be signaling that it can afford to be more aggressive on pricing for the overall service while protecting the economics of its marquee title.

Separately, Paramount Pictures is developing a Call of Duty film adaptation, set to release June 30, 2028, with Pete Berg directing from a script by Taylor Sheridan. The movie represents another revenue stream for the franchise, independent of the subscription and retail gaming channels. Together, these moves—the price cuts, the Call of Duty delay, and the film in development—sketch out Microsoft's evolving vision for how to monetize its gaming division across multiple platforms and time horizons.

Game Pass Ultimate has become too expensive for too many players. We'll keep learning and evolving Game Pass to better match what matters to players.
— Asha Sharma, Microsoft Gaming CEO
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