Reevaluating the Cost of Xbox Game Pass: Microsoft’s Gaming Chief Speaks Out

Asha Sharma, the new head of Xbox at Microsoft, has indicated that changes are on the horizon for Xbox Game Pass pricing. In an internal communication to Xbox staff, obtained by The Verge, Sharma acknowledged that the current pricing of Game Pass may be too steep for players and that there is a need for a more appealing value proposition.

Sharma emphasized the importance of Game Pass in the Xbox gaming ecosystem while recognizing that the existing model is not set in stone. She stated, “Short term, Game Pass has become too expensive for players, so we need a better value equation. Long term, we will evolve Game Pass into a more flexible system which will take time to test and learn around.”

Last year, Microsoft raised the price of Xbox Game Pass Ultimate to $29.99 per month, marking a significant 50 percent increase. While the company introduced various enhancements across all Game Pass tiers to justify the price hike, it is evident that the cost adjustment has had an impact on Game Pass subscribers.

The rise in Game Pass pricing was partly attributed to Microsoft’s decision to include Call of Duty in the subscription service. Reports from nearly two years ago suggested internal debates within Microsoft about the implications of adding new Call of Duty releases to Game Pass, with concerns raised about potential revenue conflicts. Despite these concerns, Microsoft eventually integrated Call of Duty into Game Pass in the summer of 2024.

Windows Central‘s Jez Corden recently hinted at the possibility of Microsoft removing Call of Duty from Game Pass. Corden mentioned on the XB2+1 podcast, “If they take Call of Duty out of Game Pass this year, which is a possibility from what I’ve heard, I think it will kind of reveal some of the cracks in the strategy, possibly.”

Sharma acknowledged the ongoing discussions and speculations surrounding potential changes to Game Pass pricing, noting that she will delve deeper into the matter with Xbox employees in the upcoming week. While immediate price adjustments may not be imminent, it appears that Sharma is attuned to the pricing challenges faced by Game Pass and is preparing to address them in the near future.