Xbox CEO: Game Pass is Too Expensive

Microsoft’s new Xbox boss admitted that Game Pass pricing may have gone too far and stated that major changes are being explored behind the scenes.

According to an internal memo obtained by The Verge, new Xbox chief Asha Sharma told employees that the subscription service is “too expensive for players” and needs to be restructured.

These comments come months after a major price increase that raised the price of Microsoft’s Game Pass Ultimate and drew a huge backlash from users.

Xbox Boss Admits Game Pass Pricing Must Change

In the memo, Sharma stated that while Game Pass remains central to Xbox, the current pricing model is not sustainable in the long term.

“Game Pass is at the center of game value on Xbox. However, it is also clear that the current model is not the final model,” she said.

“In the short term, Game Pass has become too expensive for players , so we need a better value equation. In the long term, we will transform Game Pass into a more flexible system that will take time to test and learn.”

She also added that she acknowledged the “online rumors” growing around pricing concerns and plans to share more details with employees in the coming weeks.

The timing follows Microsoft's decision to significantly increase subscription costs in 2025, with Game Pass Ultimate climbing to $30 per month. Other tiers are currently at $15 for Premium, $10 for Essential, and $16.50 for PC Game Pass.

Microsoft

This development comes just weeks after claims that Microsoft is exploring lower-cost options and a Netflix bundle for Game Pass.

One of the options being considered is an ad-supported tier that could allow players to access games at a discounted price or potentially for free in exchange for watching ads. This approach mirrors streaming services like Netflix, which offers a cheaper ad-supported plan.

The same report suggests that Microsoft is discussing combining Game Pass with Netflix subscriptions.

Netflix co-CEO Greg Peters confirmed that talks took place, saying the companies were “exchanging ideas,” though nothing has been finalized yet.

“You have to do it in a way that works for both the consumer and both companies,” Peters said. “Microsoft is still trying to figure out how the Game Pass bundle will work for Microsoft.”

No immediate pricing changes have been announced for now, but Sharma’s comments suggest there could be a shake-up in Game Pass soon as Microsoft looks to reset its approach.

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