New data claims cost is becoming a bigger factor in why people cancel game subscriptions

Cost is increasingly blamed for gamers choosing to cancel their Xbox Game Pass, PlayStation Plus, and Nintendo Switch Online subscriptions.

According to new survey data from Circana, cost "is becoming a stronger driver of US cancellations" across Xbox Game Pass Essential, PS Plus Essential and Nintendo Switch Online, with over 40% of US cancellers citing cost as a primary driver.

Senior director and video game analyst Mat Piscatella clarified that this doesn't mean more people are cancelling overall, stressing that the data "has no relation to the number of people canceling" but instead refers to why existing cancellers are leaving, not how many.

50% of players who had recently cancelled their Nintendo Switch Online subscription said they "couldn't justify the cost of the subscription within my budget but liked the service," up from 40% earlier in the year. For Xbox Game Pass Essential and PS Plus Essential, that figure rose from 37% in Q1 to 40% now.

Xbox reduced the price of its top-end Game Pass subscription in April but confirmed the subscription would no longer include new Call of Duty releases on day of release, admitting the service had "become too expensive for too many players."

All three console makers have also raised hardware prices this year, citing broad "market conditions," widely believed to be a reference to AI data centres driving up demand for memory components industry-wide.

In July, Xbox began testing ad-supported game streaming, with ads shown before each session while core gameplay remains unchanged. Xbox said it had introduced ads to "give more people more affordable ways to play."

Last week, Xbox confirmed it was introducing monthly cloud gaming limits for Game Pass subscribers, beginning in November 2026.

It's just one part of CEO Asha Sharma's plan to focus on "efficiency and affordability alongside performance."

Mentioned in this article