Game Pass Is Too Expensive And It Will Change, Xbox CEO Says
Microsoft’s new Xbox CEO Asha Sharma has acknowledged in an internal memo that Xbox Game Pass has become too expensive for players and committed to improving the service’s value proposition. The memo, obtained by The Verge, indicates that pricing changes are forthcoming as Microsoft attempts to address growing concerns about the subscription service’s cost.
In her message to Xbox employees, Sharma stated that while “Game Pass is central to gaming value on Xbox,” the current pricing model “isn’t the final one.” She outlined a two-pronged approach: a short-term focus on establishing a “better value equation” for players, and a long-term vision to evolve Game Pass into “a more flexible system” that will require time to test and refine.
This acknowledgment comes in the context of recent significant price increases. The premium Game Pass tier saw a controversial 50% price hike to $30 per month approximately six months before this memo, following additional increases in previous years. These consecutive price hikes have contributed to broader industry concerns about gaming becoming increasingly expensive for consumers, particularly as console hardware prices also continue to rise.
Sharma’s admission suggests Microsoft recognizes that current pricing may be unsustainable from both a customer acquisition and retention perspective. The exact nature of the planned changes remains unclear, though the emphasis on creating a “more flexible system” hints at potential adjustments to subscription tiers or alternative access models.
Sources
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- Microsoft’s new Xbox CEO Asha Sharma says Game Pass “has become too expensive for players,” suggesting a price change — “we need a better value equation”