Microsoft’s new Xbox head, Asha Sharma, has signaled that the pricing of the Xbox Game Pass (XGP) subscription service is about to be adjusted. In an internal memo to Xbox employees obtained by tech media The Verge, Sharma admitted that “Game Pass is already too expensive for players” and that Microsoft needs to “create a more cost-effective solution.”
Sharma stated, “Game Pass is the core of Xbox gaming value. It’s also obvious that the current model is not the final form. In the short term, Game Pass is priced too high, so we need to optimize its value for money; in the long term, we will upgrade Game Pass into a more flexible system, which will require time for testing and exploration.”
Last year, Microsoft raised the monthly fee for Xbox Game Pass Ultimate to $29.99, an increase of 50%. The company defended the price increase by upgrading the content of XGP services across tiers, but the price hike has clearly had a negative impact on Game Pass.
It is understood that the increased Game Pass costs are partly due to Microsoft’s decision to include Call of Duty in its subscription service. Nearly two years ago, Microsoft internally discussed adding a new Call of Duty title to Game Pass, with some employees concerned that it would weaken revenue from the series’ traditional sales. Ultimately, Microsoft included Call of Duty in Game Pass in the summer of 2024.
Last weekend, Windows Central reporter Jez Corden hinted that Microsoft might remove Call of Duty from Game Pass. Corden stated on the XB2+1 podcast, “As far as I know, Microsoft might remove Call of Duty from Game Pass this year. If they do, I think it would expose some flaws in their strategy.”
Sharma addressed the “rumors” circulating online about Microsoft adjusting Game Pass pricing, stating that he would have “more in-depth discussions” with Xbox employees next week. While a price change for Game Pass is not expected immediately, it’s clear that Sharma is aware of the pricing issue and is prepared to address it in the coming weeks.
