Price hikes are driving gamers away from Xbox and PlayStation

Over 40% of former Xbox and PlayStation subscribers cite rising costs for leaving

Price hikes put Xbox and PlayStation subscription services under pressure | ©Image Credit: Microsoft / Sony
Price hikes put Xbox and PlayStation subscription services under pressure | ©Image Credit: Microsoft / Sony

New survey data from the consumer intelligence and market research platform Circana shows a rise in subscription cancellations across Xbox Game Pass Essential, PS Plus Essential, and Nintendo Switch Online, with more than 40% of US cancellers citing price as a primary reason for leaving.

Circana senior director and video game analyst Mat Piscatella was quick to clarify the findings on Bluesky, stressing that the numbers have no bearing on how many people are cancelling overall and only on the reasons given by those who have already left.

Nintendo Switch Online recorded the steepest shift of the three. Half of players who recently dropped the service stated that they liked the platform but could no longer justify the cost within their budgets, a jump from 40% earlier in the year.

Game Pass Essential and PS Plus Essential saw similar pressure, with cancellations climbing from 37% in the first quarter to 40% now.

Microsoft, meanwhile, has been visibly reworking its economics for months. Back in April, the tech giant cut the price of its top-tier Game Pass subscription while confirming that new Call of Duty releases would no longer arrive on the service on launch day, with Xbox’s leadership acknowledging that Game Pass had “become too expensive for too many players.”

Then, July brought tests of ad-supported game streaming, where ads play before a session begins and gameplay itself goes untouched. Xbox framed the move as a way to “give more people more affordable ways to play.”

Last week the company confirmed monthly cloud gaming limits for Game Pass subscribers starting in November 2026, part of CEO Asha Sharma’s stated plan to prioritise “efficiency and affordability alongside performance.”

Subscriptions are not the only thing getting more expensive across gaming platforms, however. All three console makers raised hardware prices this year and attributed it to broad market conditions, a phrase widely understood as shorthand for AI data centers driving up industry-wide demand for memory components.

Sources: Xbox Wire, CNBC, Nintendo, Bluesky, GamesIndustry.biz