Microsoft Slashes Game Pass Prices in Australia—But There’s a Major Catch

In a surprising move that’s sent ripples through the gaming community, Microsoft has announced significant price reductions for its Xbox and PC Game Pass subscription services in Australia. The tech giant is clearly responding to mounting pressure from gamers who’ve been vocal about the steep price hikes implemented just last October.

The Price Cuts: What You Need to Know

As of April 2026, Australian gamers will see the following adjustments to their Game Pass subscriptions:

• PC Game Pass: Reduced from AU$19.45 to AU$16.95 per month
• Xbox Game Pass Ultimate: Reduced from AU$35.95 to AU$25.95 per month

These changes represent a substantial rollback from the October 2025 increases that saw prices jump by as much as 60% in some cases. The move comes after Xbox’s new leadership reportedly acknowledged that the previous price points had created a “value equation” problem that needed addressing.

The Call of Duty Complication

However, there’s a significant caveat that’s dampening the celebratory mood among subscribers. Microsoft has announced that new Call of Duty titles will no longer launch day-and-date on Game Pass. Instead, these blockbuster releases will arrive approximately one year later, during the following holiday season.

This delay effectively removes one of the most compelling reasons many gamers subscribed to Game Pass in the first place—the ability to play the latest COD games on release day without additional cost. For hardcore FPS fans and competitive players, this could be a deal-breaker.

Is Game Pass Still Worth It?

Despite the Call of Duty setback, Game Pass still offers considerable value for certain types of gamers. The service continues to provide access to an extensive library of titles, including recent additions like Albion Online, Kingdom Come: Deliverance II, Replaced, Tiny Bookshop, Planet of Lana 2, and Super Meat Boy 3D.

For gamers who burn through multiple titles each month or enjoy sampling diverse genres, the AU$16.95 monthly fee for PC Game Pass could still represent excellent value. The lack of lock-in contracts means you can subscribe for a single month to play specific titles and then cancel, providing flexibility that traditional game purchases can’t match.

The Bigger Picture

This pricing adjustment reflects Microsoft’s ongoing strategy to position Game Pass as a cornerstone of its gaming ecosystem. By making the service more affordable, Microsoft is likely hoping to attract new subscribers and retain existing ones, even as it navigates the complex landscape of AAA game publishing and distribution rights.

The Call of Duty delay, meanwhile, suggests Microsoft is still working through the financial implications of its massive Activision Blizzard acquisition and how to balance subscriber value with revenue generation from its most valuable gaming franchises.

What’s Next?

As the gaming industry continues to evolve, Microsoft’s Game Pass strategy will be closely watched by competitors and consumers alike. Will these price reductions be enough to maintain Game Pass’s position as the premier gaming subscription service? Or will the Call of Duty delay drive subscribers to alternative platforms?

One thing is certain: in the high-stakes world of gaming subscriptions, the battle for subscribers’ wallets is far from over.

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