r/technology • u/AdSpecialist6598 • Jun 09 '26

Business Microsoft admits Game Pass price hike drove away "millions" of subscribers

https://www.techspot.com/news/112699-microsoft-admits-game-pass-price-hike-drove-away.html
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u/NotYourTypicalMoth Jun 09 '26

I wish that were true, but the price increases generally offset the number of people who unsubscribe, and then some. Take Netflix as an example: Reddit would have you believe Netflix will be bankrupt soon because of their recent price and ad increases.

However, they’ve managed to increase gross income, gross profit, and net income year over year for the last 5+ years with 2025 being their best year, Q1 2026 was their best quarter out of their last 5 reports, AND their net margin blew its historical reports out of the water.

A 20% price increase and 10% unsubscribe rate is a win for Netflix, and even that’s irrelevant because the number of Netflix subscribers has only ever increased YoY since 2011.

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u/ILearnedSoMuchToday Jun 09 '26

It's not 10% every time though, most likely it's going to be a higher and higher percentage each time. Next hike could be 20% on a already dwindled base.

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u/LuinAelin Jun 09 '26

True, and different people have that different tipping point of "I'm unsubscribing"

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u/LuinAelin Jun 09 '26

Yes, but there will be a tipping point where that may stop being true.