Microsoft is preparing what could be one of the biggest shake-ups of Xbox Game Pass in years, with plans to overhaul its subscription model as subscriber growth stalls and concerns mount over the service’s impact on traditional game sales.

The company is also testing a new pay-as-you-go cloud gaming service that allows players to purchase streaming hours without committing to a monthly Game Pass subscription.

According to a report from Fortune, Xbox CEO Asha Sharma is considering a major restructuring of Game Pass that would give gamers greater flexibility over which services they pay for.

The proposed changes could introduce an à la carte model, allowing subscribers to purchase individual features such as cloud gaming, online multiplayer and access to console-only titles while retaining the existing tiered subscription structure.

The rethink follows disappointing subscriber growth. Microsoft reportedly targeted 77 million Game Pass subscribers by the end of its 2026 financial year, but the service currently has approximately 30 million.

There are also concerns that making expensive first-party games available through Game Pass from launch day has undermined full-price sales, particularly during the crucial opening weeks of major releases.

Microsoft has already experimented with pricing and restrictions, including monthly cloud gaming allowances of five, 10 or 15 hours, depending on the subscription tier.

However, the latest cloud gaming trial suggests Microsoft may already be laying the groundwork for a more flexible business model.

Xbox Tests Cloud Gaming Without Game Pass

Xbox Insiders who don’t have an active Game Pass subscription can now purchase cloud gaming hours separately, potentially opening the service to a much wider audience.

Three introductory packages are available:

  • US$3.99 for 10 hours of cloud gaming.
  • US$7.99 for 25 hours.
  • US$11.99 for 50 hours.

Prices in Australia have yet to be announced.

Unlike traditional monthly subscriptions, the purchased hours don’t expire at the end of a billing cycle. Unused time remains available until it is consumed, making the service particularly attractive to occasional gamers.

The packages also offer ad-free streaming, shorter waiting times and improved streaming quality.

There is an important catch, however. Purchasing cloud gaming hours doesn’t provide access to the Game Pass games catalogue.

Instead, players must already own an eligible Xbox game that supports cloud streaming or choose a compatible free-to-play title.

Games purchased through other PC storefronts, such as Steam, don’t appear to qualify unless players also have the necessary Xbox entitlement.

The new service is currently available to Xbox Insiders at introductory prices, with a broader rollout scheduled for November.

Could GTA 6 Give Xbox Cloud Gaming A Major Boost?

The timing of Microsoft’s cloud gaming experiment has also raised questions about its plans for Grand Theft Auto VI.

As noted by The Verge’s Tom Warren, the trial comes close to the highly anticipated game’s launch window.

Xbox chief strategy officer Matthew Ball has reportedly confirmed that Microsoft has secured streaming rights to GTA 6, potentially giving the company another way to attract players to its cloud platform.

In theory, gamers who own an eligible Xbox copy of GTA 6 could purchase cloud gaming hours and stream the blockbuster without subscribing to Game Pass.

However, there are significant limitations. Ball has clarified that GTA 6 won’t be available to stream on PC, potentially ruling out browser-based access on computers.

Microsoft has yet to explain exactly which devices will support streaming the game, leaving questions about how the service could work when GTA 6 launches.

Nevertheless, offering cloud gaming separately from Game Pass could appeal to players who want access to a handful of major releases without paying for an ongoing subscription.

Microsoft Looks To Rebuild Xbox

The proposed Game Pass overhaul is part of Sharma’s broader strategy to revive Xbox’s fortunes after years of intense competition from Sony’s PlayStation.

Microsoft is developing new gaming hardware, investing more heavily in established franchises and exploring ways to make physical game ownership more relevant.

One initiative, called “Your Discs. Now Also Digital”, would allow supported Xbox game discs to unlock digital entitlements while keeping the physical copies playable.

There are also rumours that Microsoft’s upcoming Project Helix console could introduce alternatives to traditional game discs.

That approach could become particularly significant as Sony reportedly prepares to stop producing physical discs for new PlayStation releases from 2028, a move that has already generated criticism among gamers concerned about ownership and game preservation.

Microsoft could potentially use those concerns to its advantage by offering greater flexibility in how players purchase, access and retain their games.

However, the company still faces considerable challenges, including sluggish Game Pass growth, the rising cost of developing blockbuster titles and questions about whether subscription gaming can deliver sustainable profits.

The introduction of pay-as-you-go cloud gaming suggests Microsoft is beginning to explore alternatives to its subscription-first strategy.

Whether that leads to cheaper Game Pass tiers, more optional extras or a complete rethink of how Xbox services are sold remains unclear.

For Sharma, the challenge will be making Xbox more attractive to gamers without further undermining the revenue Microsoft generates from traditional game sales.

If the company can strike that balance while delivering compelling new hardware and games, Xbox may finally have an opportunity to regain some of the ground it has lost to PlayStation.