In the wake of Microsoft's seismic acquisition of Activision Blizzard, the gaming landscape shifted dramatically. For Xbox Game Pass subscribers, the payoff was immediate and massive: every new Call of Duty title, from day one, landing directly in the subscription library. It was a consumer-friendly move that solidified Game Pass as the ultimate gaming value proposition.
However, new reports suggest this generosity came at a staggering cost, with one analysis claiming Microsoft squandered over $300 million in revenue by including Call of Duty in the service. But while gamers voice their frustration over recent, steep price increases for Game Pass, a surprising group is reportedly viewing the change with optimism: the developers at the studio behind the upcoming Call of Duty: Black Ops 7.
Not Everyone is Mourning the New Game Pass Prices
The recent announcement from Microsoft sent shockwaves through the Xbox community. Starting October 1st, the price for the premium Xbox Game Pass Ultimate tier is jumping to $29.99 per month for U.S. subscribers. This is the tier required for day-one access to all major releases, including the upcoming Black Ops 7. PC Game Pass also saw a significant hike, and to add fuel to the fire, Microsoft is removing popular perks like discounts on Call of Duty DLC.
The vitriol from the player base has been palpable, but according to one source, the sentiment behind the scenes at the Black Ops 7 studio is strikingly different.
Industry leaker TheGhostOfHope, who has a track record of accurate Call of Duty insights, claims to have spoken with developers working on the title. The revelation, shared in a post on X (formerly Twitter), suggests that the studio sees a potential upside to the price increase.
According to the source, the developers believe that higher subscription fees could translate to "more revenue, which means they are more in control of their future and what they can achieve."
The Bonus Structure: How Game Pass Impacted Developer Pay
To understand this perspective, you need to look at the traditional bonus structure in game development. Historically, developers at studios like Treyarch or Infinity Ward receive significant bonuses based on the number of copies their game sells.
The "all-you-can-eat" nature of Game Pass fundamentally disrupted this model. Why would a subscriber buy a game for $70 when it's already included in their monthly fee? As detailed in a report by Push Square on the financial impact, putting Call of Duty on the service "substantially decreased the number of copies sold."
For the developers, the Game Pass price increase introduces a new calculus. The studio reportedly noted that the "price increase also means they need to rely on making games that sell more units to achieve these bonuses." In simpler terms, a more expensive Game Pass might push more players towards simply buying Black Ops 7 outright.
If the higher monthly cost causes even a portion of the player base to cancel their subscriptions and purchase the game individually, it could lead to a notable surge in traditional sales figures—and, by extension, larger bonuses for the team that created it.
A Diverging Path: Executives, Gamers, and the Future of Game Pass
This internal developer outlook appears to align with the renewed optimism from Activision executives. After the initial shock of the revenue drop, the new pricing strategy is seen as a way to re-stabilize the franchise's incredibly lucrative sales model.
For gamers, however, the equation is less cheerful. The value proposition of Game Pass is being fundamentally re-evaluated. With the highest tier now costing $360 per year, the decision between subscribing and buying two or three major titles outright becomes much tougher.
This comes at a time when analyst SuperJoost has shared data showing a gradual decline in new Game Pass signups. While logic would dictate that higher prices would accelerate this trend, the analyst believes Microsoft's new strategy is to bifurcate its audience: catering to the dedicated, "all-in" gamer willing to pay a premium, while potentially introducing more casual, lower-cost tiers down the line.
The ultimate success of this strategy hinges on a critical question: Is a new Call of Duty game, even one as highly anticipated as Black Ops 7, enough to make millions of players accept a dramatically more expensive subscription? The answer will not only define the future of Xbox Game Pass but also determine whether the developers' hopeful outlook becomes a reality.
What do you think about the recent Xbox Game Pass price increases? Does it change how you’ll access Call of Duty: Black Ops 7? Let us know in the comments below.
REPORT: I spoke to several Call of Duty developers who say that the recent price increase for Game Pass from $19.99 to $29.99 is a positive for the Call of Duty studios.
— Hope (@TheGhostOfHope) November 1, 2025
Financially, this will be a win for them as individuals because it will lead to more revenue which means they… pic.twitter.com/jR1HRC9WQ9