Xbox Game Pass Could Introduce “Pick Your Plan” Subscription Model

Microsoft is reassessing the long-term future of Xbox Game Pass after internal concerns revealed the service may be too expensive to sustain at its current scale. The shift comes as the company adjusts pricing and steps back from including Call of Duty titles as day-one releases.

Call of Duty Challenges the Game Pass Model

As Windows Central writes, the core issue lies in how blockbuster franchises like Call of Duty interact with a subscription model. Unlike most first-party titles, Call of Duty operates as a massive standalone revenue engine, generating billions through full-price sales and ongoing live-service content.

Including such a title in Game Pass introduces a clear trade-off. Instead of selling copies at $70, Microsoft risks lowering overall revenue per user. High development costs and continuous infrastructure support only add pressure, making it difficult for the subscription model to absorb the impact.

This imbalance already shows signs of strain, with weaker-than-expected sales for recent entries like Black Ops 7 raising concerns about cannibalization.

Why Some Services Stay Outside Game Pass

The same logic explains why Microsoft avoids bundling certain subscription-based services into Game Pass. Offerings like World of Warcraft subscriptions, Fallout First, and Minecraft Realms remain separate.

Each of these services generates recurring revenue on its own. Folding them into Game Pass would dilute their value and reduce overall profitability, mirroring the issues seen with Call of Duty.

Internal Cost Allocation Adds More Pressure

Microsoft uses an internal system that effectively “charges” Game Pass for lost retail sales. When a major title enters the service, the associated revenue loss gets reflected in the studio’s budget.

For large franchises, this creates a ripple effect. A single title like Call of Duty can consume a significant portion of the Game Pass budget, potentially limiting funding for new projects and smaller studios.

Price Increases and User Backlash

To offset these pressures, Microsoft has already raised the price of Game Pass Ultimate. The move aims to balance rising costs, but it has not landed well with users.

Higher pricing combined with selective content availability has led to growing frustration. Some users question the value of paying more for content they may not use, especially when major titles are no longer guaranteed at launch.

This shift could also lead to subscription drop-offs, particularly among players who primarily engage with a single franchise.

Player Behavior Reveals a Split Audience

Usage patterns highlight a divide in how players interact with Game Pass. Call of Duty players tend to prefer buying the game outright, ensuring full access and long-term ownership.

In contrast, Game Pass subscribers often value variety. They use the service to explore multiple titles rather than commit to a single live-service game.

This mismatch creates a perception issue. Some users feel they are subsidizing content that does not align with their gaming habits.

Microsoft Moves Toward Flexible Subscription Plans

To address these challenges, Microsoft is exploring a more modular approach to Game Pass. Early signs point to a “pick your own plan” model, where users can customize their subscriptions based on preferences.

New tier structures have already started to appear, suggesting a broader transition is underway. The goal is to give players more control while maintaining a sustainable business model.

A Necessary Evolution for Game Pass

The current Game Pass model shows clear strain under the weight of blockbuster, live-service games. Microsoft now faces the challenge of balancing price, content, and user expectations.

A more flexible system could restore the perception of Game Pass as the best value in gaming. Success will depend on how well Microsoft aligns its offerings with actual player behavior while protecting the economics behind its biggest franchises.