Key Takeaways
- Xbox chief Asha Sharma admitted in an internal memo that Xbox Game Pass has become “too expensive for players” and that a better value equation is needed.
- The service’s current pricing model is not considered final; Microsoft plans to evolve Game Pass into a more flexible system over time.
- A 50 % price increase last year raised Xbox Game Pass Ultimate to $29.99 / month, a move justified by added features but which has drawn criticism.
- The inclusion of Call of Duty titles in the subscription contributed significantly to the cost rise, and rumors suggest Microsoft may remove the franchise to ease pricing pressure.
- Sharma said she will “go deeper” with employees next week, though no immediate price changes are expected in the coming days.
Microsoft’s new Xbox leader, Asha Sharma, has signaled that the pricing strategy for Xbox Game Pass is under active review. In an internal memo obtained by The Verge, Sharma candidly told employees that the service has become “too expensive for players” and that the company needs “a better value equation.” She emphasized that while Game Pass remains central to the perceived value of Xbox, the existing model is not the final iteration and will need to evolve.
The memo follows a substantial price adjustment made last year when Microsoft raised the cost of Xbox Game Pass Ultimate from $19.99 to $29.99 per month—a 50 % increase. The company attempted to justify the hike by pointing to a slate of upgrades across all Game Pass tiers, including expanded cloud gaming capabilities, day‑one releases, and a broader library of titles. Despite these enhancements, the jump in price has provoked noticeable pushback from subscribers, who feel the cost no longer aligns with the perceived benefits.
A significant driver behind the higher subscription fee was the decision to add Activision Blizzard’s Call of Duty franchise to the service. Microsoft had debated internally for nearly two years whether to include new Call of Duty releases in Game Pass, wary that the subscription model could cannibalize traditional sales of the blockbuster shooter. Ultimately, the company opted to integrate Call of Duty into Game Pass in the summer of 2024, a move that added considerable licensing and royalty expenses to the service’s cost base.
Industry insiders have since speculated that Microsoft might reconsider this addition. Jez Corden of Windows Central hinted on the XB2+1 podcast that removing Call of Duty from Game Pass this year is a distinct possibility, suggesting that such a shift could expose underlying weaknesses in Microsoft’s current subscription strategy. Sharma’s memo appears to acknowledge these external discussions, noting the “online chatter” about potential pricing changes and promising to explore the matter more thoroughly with her team.
While Sharma’s comments make it clear that Microsoft is aware of the pricing dissatisfaction among its player base, she also indicated that any concrete adjustments will not happen imminently. She told employees that the company will take time to test and learn around a more flexible Game Pass system, implying that a redesign—whether through tiered pricing, optional add‑ons, or a revised content lineup—will be a longer‑term initiative.
In summary, the internal communication from Asha Sharma confirms that Microsoft is reevaluating the value proposition of Xbox Game Pass. The recent 50 % price increase, largely influenced by the costly addition of Call of Duty, has rendered the service less attractive to many gamers. Although no immediate price cuts are expected, the leadership is preparing to experiment with alternative models that could restore balance between cost and content, potentially reshaping how Xbox delivers its subscription offering in the months ahead.