Microsoft could drop Call of Duty from Xbox Game Pass, as first-party game sales fall

In January, Microsoft reported that gaming revenue declined by 9% compared to the same 3-month period in the previous year. Support for first-party Xbox games slumped, with Call of Duty: Black Ops 7 struggles a major factor. With concerns that Xbox Game Pass cannibalized sales, an insider believes future releases may skip the subscription service.

Jez Corden of Windows Central made the revelation on a new podcast. Corden remarked that removing Call of Duty games from Game Pass was a “possibility from what I've heard.” Earlier in the broadcast, he discussed how popular AAA Xbox games were affected by their day-one availability on Ultimate or lower tiers.

The Game Pass effect

Microsoft hasn’t shared numbers on the topic, but other industry sources have offered their insights. In early 2025, The Game Business lead Christopher Dring said titles on the service “lose around 80 percent of expected premium sales on Xbox.” He pointed to other projects that suffered, including Starfield and Indiana Jones and the Great Circle.

Even before the Call of Duty: Black Ops 7 release date, there was evidence that Game Pass hurt the franchise. The first entry to debut on day one was Black Ops 6 in 2024. Bloomberg estimated it lost up to $300 million in revenue due to the subscription model.

Black Ops 7 failed to meet expectations

The overall performance of Black Ops 7 looks even more grim. Leaked from a lawsuit involving former Activision-Blizzard CEO Bobby Kotick, gamers learned that Call of Duty sales fell by 60% in 2025. That’s not surprising, considering the historically low Steam player counts for the series. The success of EA’s Battlefield 6 also detracted from the normally anticipated refresh of the shooter.

Another problem for Microsoft is that content and services growth appears stagnant. Its latest fiscal statement highlighted that its quarterly revenue dropped 5% year over year. If Call of Duty games aren’t attracting new subscribers and standalone purchases are dwindling, the company may take action.  

Many critics blame Activision’s franchise for the latest Xbox Game Pass price increase. Delisting it from the Ultimate tier could be one way to offer more affordable rates. Another suggested compromise is to delay its arrival by several months to preserve launch-day sales.