Microsoft’s new Xbox gaming chief, Asha Sharma, admitted in a leaked internal memo that the Xbox Game and subscription service has become too expensive for its player base.
In the memo obtained by The Verge, Sharma told Xbox employees that the company needs to find "a better value equation."
"Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one," Sharma wrote.
She noted that "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."
Microsoft increased the price of Xbox Game Pass Ultimate to $29.99 per month last year, representing a 50 percent hike. While the company provided various tier upgrades to justify the cost, the price increase has impacted subscriber sentiment.
Potential shifts in content strategy
Sharma specifically referenced "online chatter" regarding rumors of pricing changes and promised to provide more details to employees next week.
Industry analysts suggest the inclusion of major titles may be a factor in the current pricing structure. Microsoft added Call of Duty to the service in the summer of 2024, a move that previously caused internal debate regarding potential revenue loss from direct sales.
Recent reports suggest the subscription content itself may change. Speaking on the XB2+1 podcast, Windows Central’s Jez Corden hinted that Microsoft might remove Call of Duty from the service later this year.
"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," Corden said.
No immediate price changes have been announced, but the memo indicates leadership is preparing to address the current subscription model.
