Why I’m Parting Ways with Xbox

From Best Value in Gaming to A Pricey Proposition

A few years back, Microsoft was heralded for offering great value in the gaming world. The minimalist Xbox Series S was priced attractively at $300, and if you were patient enough to hunt for deals, sometimes even cheaper. Plus, for just $15 a month, subscribing to Xbox Game Pass Ultimate unlocked access to a vast library of old and new games. Fast forward to 2025, and things have shifted drastically.

In this year, the nearly five-year-old Xbox hardware lineup underwent two significant price hikes. The Series S model with 512GB storage now sets you back $400, while the Series X starts at $600 sans a disc drive and $650 with one—a sharp increase from earlier price points of $450 and $550, respectively. Adding to gamers' woes, Microsoft has also increased the Xbox Game Pass Ultimate fee by 50%. The service will soon cost $30 monthly, up from $20, and that’s not the only price swell; as recently as July last year, it was priced at $17. Such steep hikes reflect a wild change.

Price Increases: A Market Trend or Microsoft's Unique Strategy?

Microsoft is not alone in its decision to push console prices northward. Nintendo is also charging more for its aging original Switch and paved the way for the more expensive Switch 2 at $450. Sony, too, has raised PlayStation 5 prices, though not as intensely. Given the tumultuous state of the US economy in 2025—expected to continue for the foreseeable future—these are understandable strategies, but Microsoft’s approach appears exceptionally severe.

Before the Game Pass price escalation, Microsoft seemed confident that the surge in revenue from loyal fans would compensate for the drop-offs from those who find the new pricing unacceptable. Users who regularly leverage Game Pass might continue their subscriptions out of habit, potentially overlooking the fee increases.

Paying $30 for access to hundreds of games, including high-priority launches usually retailing at $70, might still seem reasonable. An analogy would be paying $30 or $40 for a music service when buying a single album costs almost as much; fair for all involved, but that’s another discussion.

The Evolution of Market Standards and Consumer Expectations

Music streaming services set their initial monthly fees around $10 to attract subscribers—a standard until recent modest price tweaks, unlike the steep elevations visible in video and now gaming subscriptions. Microsoft pioneered subscription-based game libraries, initially adopting low fees to amass subscribers. Now, they seem to be adjusting this tactical miscalculation by imposing these price hikes.

Long-time users of Game Pass, who paid between $15 to $20 per month over the years, will find the $30 rate difficult to swallow. Annual subscriptions for Game Pass now soar above double the cost of a PlayStation Plus Platinum package, though Sony’s service doesn’t include day-one access to its top-tier first-party titles.

Personal Reflection: A Goodbye to Xbox

For a while, I've contemplated leaving Xbox behind, and with these recent changes, that decision seems inevitable. The Series S and Game Pass once offered a perfect blend of affordability and opportunity for exploring games I was curious about. However, with the significant price increases, enticing new players to join the Xbox ecosystem has become an unprecedented challenge.

My initial yearly expense for an Xbox Series S and Game Pass was $480, but today’s equivalent would set me back nearly $860—a staggering hike. PlayStation presents a more value-driven alternative, not to mention frequent generous discounts on platforms like Steam. Moreover, many Xbox exclusives, like the game that initially drew me to Xbox—Forza Horizon 5—are now becoming available on other consoles. This further diminishes the incentive to stick with Xbox at their current rates.

Shifting Focus: From Hardware to Services

Microsoft proposes that any device can transform into an Xbox, capitalizing on the ability to stream games to TVs or set-top boxes. However, this hinges on the necessity for robust internet connectivity. Most who would pay $30 for Game Pass likely desire the enhanced performance only a dedicated console can provide. Yet, Microsoft has incorporated game streaming into all Game Pass tiers, broadening accessibility.

The company appears to pivot consumer expenses from hardware, traditionally sold at a loss, toward its increasingly expensive service offerings. While adjusting prices is somewhat expected, users accustomed to previous pricing feel wronged. Microsoft’s new strategy seemingly prioritizes fewer but higher-paying customers. Whether this gamble pays off in the long run remains uncertain. But for one gamer, the uncertainties are too much—it's time to move on. I suspect others feel similarly.