Xbox Game Pass Is Profitable, But New $29.99 Price Sparks Outrage

For years, Xbox Game Pass has been one of the most discussed topics in gaming, not just because of its vast library but because of the questions it raised about sustainability.

Launched back in June 2017, the subscription service seemed almost too good to be true. Unlimited access to hundreds of games, including major AAA titles from Microsoft’s own acquisitions like Bethesda and Activision Blizzard, created the perception that Microsoft was willing to lose money just to dominate the gaming space. The common assumption was simple: how long could even a trillion-dollar giant keep this model alive without bleeding cash?

Now, Xbox president Sarah Bond has added her voice to the conversation. Speaking in an interview with Japanese outlet Game Watch during TGS 2025, she emphasized that Xbox Game Pass is not just surviving but thriving. According to Bond, the service generated a record-breaking $5 billion in revenue last fiscal year. She stated clearly: “It’s a profitable business, and as more creators join Xbox Game Pass, payments to creators increase, so we think it’s a good business for creators.” This assertion challenges the long-running narrative that Game Pass was simply a loss leader designed to buy market share.

Yet, the timing of Bond’s statement raised eyebrows. Just a day after the interview, Microsoft confirmed a sharp increase in subscription prices: Xbox Game Pass Ultimate now costs $29.99 a month, with other tiers also seeing significant hikes. For players, the news stung. If the service is already profitable, why demand 50% more from loyal subscribers? Critics argue that this contradiction shows Microsoft’s hunger for higher margins rather than just sustainability. And while Bond may not have addressed the price changes directly, many assume she was fully aware of the looming announcement.

The reasoning seems straightforward: profitability is relative. While $5 billion in revenue is impressive, Microsoft has spent over $80 billion acquiring content for Game Pass, including Activision Blizzard ($75.4B) and ZeniMax Media/Bethesda ($7.5B). With those massive investments, the company now needs Game Pass not just to make money, but to generate enough profit to satisfy shareholders. Analysts had expected Game Pass subscriptions to skyrocket with titles like Elder Scrolls, Fallout, DOOM, Diablo, and Call of Duty all available in the catalog. The reality, however, is slower growth than anticipated.

Instead of winning millions of new subscribers overnight, Microsoft seems to be squeezing more value out of its current base. The gamble is risky: how many will stick around at nearly $30 per month, especially when that’s the cost of buying two or three discounted games outright? Within hours of the announcement, the cancellation page for Game Pass was reportedly flooded with traffic, showing just how fragile customer loyalty can be when prices jump dramatically.

In the end, Xbox Game Pass remains a fascinating experiment in modern gaming. It has proven profitable, yes, but the price hike paints a picture of a company recalibrating expectations after years of heavy investment. Whether fans will accept the new reality or abandon ship in favor of traditional game purchases is the next big question.