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Microsoft's Xbox Game Pass Falls Short of Projections

WireByte Staff · July 6, 2026

Microsoft's Xbox Game Pass subscription service has fallen significantly short of its target of 77 million subscribers by July 2026, with only 30 million subscribers currently. This comes as the company plans to cut 3,200 jobs and follows a Federal Trade Commission investigation into Microsoft's acquisition of Activision Blizzard. The shortfall has raised concerns about the future of the gaming business.

Key points

  • Microsoft's Xbox Game Pass currently has 30 million subscribers, well short of its target of 77 million by July 2026.
  • The company plans to cut 3,200 jobs, with Xbox CEO Asha Sharma citing Game Pass's slow growth as a factor.
  • Former Xbox CEO Phil Spencer previously warned that failing to reach 40 million subscribers by fiscal year 2027 could lead to the company exiting the gaming business.
  • The shortfall has raised concerns about the future of the gaming business and Microsoft's plans for Xbox.

Microsoft's Xbox Game Pass subscription service has fallen significantly short of its target of 77 million subscribers by July 2026. According to a Wall Street Journal report, the service currently has only 30 million subscribers. This news comes as the company plans to cut 3,200 jobs, with Xbox CEO Asha Sharma citing Game Pass's slow growth as a factor.

The shortfall has raised concerns about the future of the gaming business and Microsoft's plans for Xbox. Former Xbox CEO Phil Spencer previously warned that failing to reach 40 million subscribers by fiscal year 2027 could lead to the company exiting the gaming business.

The Federal Trade Commission's investigation into Microsoft's acquisition of Activision Blizzard has also highlighted the importance of the gaming business to the company's future. Microsoft's 2027 fiscal year began on July 1, 2026, and it is clear that the company has a long way to go to reach its targets.

Sources

WireByte Staff — Editorial Team

The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.