Xbox Studio Executives Criticize Game Pass for Undermining Game Value

WHO:

Wccftech - Xbox CEO Asha Sharma, Xbox studio leaders, Moon Studios CEO Thomas Mahler, Bloomberg's Jason Schreier

Windows Central - Xbox studio leads, Phil Spencer

WHAT:

Wccftech - Xbox plans to cut 3,200 employees by July 2027.

Wccftech - Game Pass subscriber base decreased from 34 million to 30 million.

Wccftech - Xbox Game Pass is criticized for devaluing games, with studio leaders expressing strong discontent.

Windows Central - Xbox Game Pass was designed as an all-you-can-eat subscription service.

Windows Central - Xbox Game Pass price was raised to $30 last year to offset potential losses from Call of Duty.

WHERE:

Wccftech - Xbox is part of Microsoft's gaming division.

WHEN:

Wccftech - The future of Game Pass is uncertain, with speculation about changes to day-one availability for major games.

Windows Central - The price hike for Xbox Game Pass occurred last year.

WHY:

Wccftech - The decline in Game Pass revenue and the performance of Call of Duty are contributing factors to Xbox's financial struggles.

Windows Central - Studio leaders believe Game Pass undermines the market value of games, leading to a perception that games could not sell on their own.

HOW:

Wccftech - Xbox Game Pass has been central to Xbox's strategy for nearly 10 years.

Windows Central - Xbox has an engagement formula to allocate profits from Game Pass back to studios, though some find it opaque and unmotivating.

(UPDATED July 19, 2026 22:13 UTC)

Xbox is planning to cut 3,200 employees by July 2027, as the company grapples with a decline in its Game Pass subscriber base, which has dropped from 34 million to 30 million. Studio leaders have expressed strong discontent, criticizing Game Pass for devaluing games and raising concerns about its future, particularly regarding day-one availability for major titles. Additionally, the price of Xbox Game Pass was raised to $30 last year to offset potential losses from Call of Duty, amidst worries that the service undermines the market value of games.