Xbox Game Pass Price Hike From $20 to $30 Sparks Global Outrage as Microsoft Doubles Down on Next-Gen Xbox Hardware Plans

Xbox Game Pass Price Hike: Customer Backlash and Regional Delays

Microsoft has ignited controversy after announcing a dramatic 50% increase for Xbox Game Pass prices, with Ultimate raising the monthly fee from $20 to $30 in major markets like the United States and the United Kingdom. This Xbox Game Pass development marks an extra $120 per year for loyal subscribers. In response to immense backlash, Microsoft announced that the controversial price hike would be delayed in several countries, though not in the US or UK, following consumer outrage and a wave of subscription cancellations.

As reported by The Verge, the price adjustments took effect for new subscribers on October 1, 2025, and were initially scheduled for all existing subscribers starting November 4. However, Microsoft clarified that in select regions—such as Poland, Ireland, Italy, Germany, and South Korea—current subscribers with auto-renewal active would be shielded from the increase, at least temporarily. Only new subscribers or those who let their subscription lapse will pay the higher rate.

Microsoft attributed the price hike to added features such as more day-one game releases, the inclusion of Fortnite Crew and Ubisoft+ Classics, and improved cloud gaming. But this has done little to appease the discontented fanbase: Over half of polled gamers report intentions to cancel their Game Pass subscriptions altogether. Social media is ablaze with reports of mass cancellations so dramatic that the Xbox subscription management site crashed from high traffic, and data from Google Trends shows a spike in searches for “cancel Xbox Game Pass.”

Xbox Consoles Cleared from Retailers Amid Industry Uncertainty

Fueling concerns about Microsoft’s gaming hardware future, major retailer Costco has started clearing out Xbox Series S and X inventory globally. This move follows steep console price hikes—from $549.99 to $599 for an all-digital Series X and up to $649.99 for the disc edition. Costco described its decision to discontinue Xbox consoles as a “business decision,” choosing to stock only PlayStation and Nintendo Switch units moving forward. Consumer speculation connects these clearances to weakening console demand amid higher prices.

The broader gaming market, impacted by inflation and changing retail strategies, has seen similar trends. While hardware revenue is up due to price increases, unit sales have reportedly faltered. Microsoft’s move to expand Game Pass perks and library is likely a strategy to shore up falling hardware sales, but industry insiders see it as a sign Xbox hardware could be at a crossroads.

Next-Gen Xbox Hardware: Rumors Laid to Rest

Amid these shifts, rumors exploded suggesting Microsoft might exit the console business to focus solely on cloud gaming and third-party software. However, multiple official and insider sources—especially AMD engineers directly involved in development—confirm Microsoft’s next-generation Xbox hardware project is proceeding “full steam ahead.” As reported by in an official statement to Windows Central, Microsoft’s President Sarah Bond and AMD CEO Lisa Su both reaffirmed their multi-year partnership to produce “a portfolio of devices,” explicitly mentioning a premium next-gen Xbox, potentially launching as early as 2027.

Insiders reveal that the new device, codenamed “Magnus,” could be a dramatic departure from traditional hardware, possibly becoming a PC-console hybrid or even an Xbox-branded gaming PC, leveraging Windows integration to simplify game development and expand ecosystem reach. Microsoft’s next-gen hardware strategy may also include direct cloud capabilities, backward compatibility, and support for third-party storefronts like Steam or Epic Games Store.

Microsoft’s public statements emphasize that the Series X|S remain in production and that active work is underway on their successors. The sign of the times is the Xbox Game Pass price hike. The company issued a direct rebuttal to exit rumors, stating, “We are actively investing in our future first-party consoles and devices designed, engineered, and built by Xbox. For more details, the community can revisit our agreement announcement with AMD.”

What’s Next for Xbox Fans?

For Xbox enthusiasts, the landscape is shifting rapidly:

• Xbox Game Pass subscribers in the US and UK face a stark choice: pay more or leave.

• Costco’s Xbox console exit could hint at deeper shifts in retail and production priorities.

• Despite the gloom from recent layoffs and hardware depletions, fans can expect new Xbox hardware—albeit potentially with a design very different from today’s consoles—in as little as two years.

Microsoft’s plans aim to fuse traditional hardware, PC flexibility, Xbox Game Pass, cloud gaming, and massive subscription libraries, betting that a diversified portfolio can revive its standing as a gaming powerhouse.