1. Microsoft’s gaming revenue declined by 9%, with support for first-party Xbox games weakening, partly due to Call of Duty: Black Ops 7 struggles.
2. There is speculation that future Call of Duty titles might be removed from Xbox Game Pass to prevent cannibalization of premium sales.
3. Call of Duty and other AAA Xbox games have experienced significant sales losses, attributed to their availability on subscription services and the impact on standalone sales.
4. Microsoft’s overall content growth and revenue are stagnating, prompting potential strategies like removing Call of Duty from subscription tiers or delaying releases.
Games Revenue Fell Significantly
In the month of January, Microsoft reports were indicating that their gaming revenue went down about 9% from the same 3-months period last year. Support for their own Xbox titles took a hit, especially with the struggles faced by Call of Duty: Black Ops 7, which was a big factor in the decline. There are worries that the Xbox Game Pass might have been eating into the sales since some believe that more people were playing via subscription than buying individual games. Because of this, some insider is saying that future game releases might decide to skip the subscription service altogether.
Expert Opinions and Industry Insights
Jez Corden from Windows Central shared these insights on a fresh podcast, saying that the idea of removing Call of Duty games from the Game Pass isn’t just a rumor, it’s a possibility. During the same broadcast, he talked about how that popular AAA Xbox games are being affected because they become available from day one on the Game Pass Ultimate or other tiers, making it less attractive to buy the physical or digital copies separately.
Impact on Game Sales and Market Trends
While Microsoft hasn’t publicly released exact numbers about their sales losses, industry insiders have shared their opinions. For example, Christopher Dring from The Game Business pointed out that titles on the service tend to lose “around 80 percent of expected premium sales on Xbox.” Games like Starfield and Indiana Jones and the Great Circle also saw their sales affected, signaling a broader trend where subscription services might be hurting traditional game sales.
Black Ops 6 and Price Losses
Before the release of Black Ops 7, there was already signs that Game Pass was hurting the franchise. The first installment to launch with day-one availability on the service was Black Ops 6 in 2024. Bloomberg estimated that the game might have lost up to $300 million because of the reliance on subscriptions, which shows how much the revenue model can impact the game’s profitability.
Declining Sales and Player Counts
In more recent leaks from a lawsuit related to Activision-Blizzard’s former CEO Bobby Kotick, it was revealed that Call of Duty sales fell by a staggering 60% in 2025. This decline isn’t surprising because the series has seen historically low player counts on Steam, and other titles like EA’s Battlefield 6 have also pulled some attention away. The competition and changing consumer habits seem to be hitting the franchise hard.
Financial Performance and Future Strategies
Microsoft’s latest financial statement shows a 5% decrease in quarterly revenue year-over-year. If key franchises like Call of Duty aren’t enticing new subscribers or encouraging standalone sales, then the company might need to reconsider its strategies to boost growth.
Potential Changes for Accessibility and Pricing
A lot of critics argue that Activision’s franchise is partly responsible for the recent price hike of Xbox Game Pass. Some suggest they might remove Call of Duty from the Ultimate tier to offer cheaper options or delay its release on Game Pass to protect launch-day sales, hoping to balance both subscriptions and standalone purchases better.











