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 gamers” and that Microsoft needs to “create a more cost-effective solution.”
Sharma stated, “Game Pass is at the heart of Xbox gaming value. It’s also obvious that the current model isn’t the final form. In the short term, Game Pass is overpriced, so we need to optimize its value; in the long term, we will upgrade Game Pass to a more flexible system, which will require time for testing and experimentation.”
Last year, Microsoft raised the monthly fee for Xbox Game Pass Ultimate to $29.99, a 50% increase. The company defended the price hike by upgrading the content of each XGP tier, but the price increase has clearly negatively impacted Game Pass.
It is understood that the increased cost of Game Pass is partly due to Microsoft’s decision to include Call of Duty in the subscription service. Nearly two years ago, Microsoft internally discussed adding a new Call of Duty title to Game Pass, with some employees worried that it would weaken revenue from traditional sales of the series. Ultimately, Microsoft added Call of Duty to 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 “online rumors” about Microsoft adjusting Game Pass pricing and stated 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.
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