Xbox CEO Asha Sharma addressed the pricing strategy of the Game Pass subscription service in a recent leaked memo to employees. Sharma stated that “Game Pass is central to gaming value on Xbox” but acknowledged that “the current model isn’t the final one,” highlighting concerns that the service has become too costly for players.
The memo suggests that Microsoft plans to evolve Game Pass into a more flexible system, a process that will require time for testing and learning. This move comes after two price increases within 15 months, which have led to perceptions that the service is too expensive.
The upcoming April update for Game Pass will add titles including indie games such as Hades 2 and a new project from Double Fine called Kiln, alongside high-profile releases like the Call of Duty: Modern Warfare remake. The addition of the Call of Duty franchise has been suggested as a factor in the price hikes, as Microsoft would forfeit revenue by including new entries in the subscription service.
It remains uncertain whether these potential changes will lead to a renewed interest in Game Pass or if new pricing tiers could deter subscribers. Nonetheless, the acknowledgment of pricing issues within the company is viewed positively, particularly after a series of perplexing decisions within Xbox in recent years.
Sharma said that a “better value equation” is necessary and emphasized a long-term commitment to rethinking the Game Pass model. This approach may indicate a shift toward addressing consumer concerns and improving the service’s competitive standing.
