Xbox Gaming Chief Signals Pricing Overhaul After Game Pass Becomes “Too Expensive”
Microsoft Gaming CEO Asha Sharma has acknowledged that the current pricing structure for Xbox Game Pass has pushed the service beyond the reach of many players. In a leaked internal memo first reported by The Verge, Sharma admitted that the company needs to establish a “better value equation” for its subscribers.
The admission comes as a pivotal moment for Microsoft’s gaming strategy, highlighting the delicate balance between scaling a subscription service and maintaining accessibility for a global gaming audience.
According to the memo, Sharma views the current situation through a two-phase lens. In the short term, the company is looking to address the immediate cost concerns of players. In the long term, Sharma intends to transition Game Pass into a “more flexible system,” though she noted that this evolution will require a period of testing, and learning.
“Game Pass is central to gaming value on Xbox. It’s similarly clear that the current model isn’t the final one. Short term, Game Pass has grow too expensive for players, so we demand 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.”
This shift follows a series of significant price adjustments in October 2025. During that period, the cost of Xbox Game Pass Ultimate jumped 50%, rising from $19.99 to $29.99 per month. Simultaneously, PC Game Pass saw a roughly 37% increase, moving from $11.99 to $16.49. These hikes appear to be the primary drivers behind the current need for a structural overhaul.
The current subscription landscape for the service includes four distinct tiers, with the entry-level Game Pass Essential priced at $9.99 per month and the top-tier Ultimate version reaching $29.99. This is a stark contrast to the service’s 2017 launch price of $10 per month, which later evolved into a $15 bundle including Xbox Live Gold.
While the leaked memo signals a desire for change, reports suggest that actual price adjustments may not happen immediately. The move underscores the ongoing challenge for Big Tech in optimizing recurring revenue models while fighting to retain a broad user base in a competitive gaming market.
Xbox Game Pass continues to offer a rotating library of titles, including Day One releases from Microsoft’s internal studios and a variety of games ranging from indie titles like Tiny Bookshop to classic JRPGs such as Final Fantasy 4.
