New Xbox CEO reportedly admits Game Pass “has become too expensive for players” in leaked memo
New Xbox CEO Asha Sharma has publicly acknowledged in a leaked internal memo that Microsoft’s Game Pass subscription service has become “too expensive for players” and requires a “better value equation.” The memo, obtained by The Verge, was sent shortly after Sharma’s appointment in February following Phil Spencer’s retirement after nearly 40 years with Microsoft.
Sharma stated that the current Game Pass pricing model is not final and will evolve into a more flexible system that requires further testing and development. The acknowledgment comes amid player criticism following substantial price increases last year, when Xbox raised Game Pass pricing by up to 50%. Microsoft had attributed those increases to strengthening the subscription’s offerings, with Call of Duty’s addition to the service cited as a primary driver of increased costs.
The admission represents a significant shift in messaging from Microsoft, which had previously justified higher prices as necessary to deliver greater value. Sharma’s comments suggest the company recognizes that pricing strategy may be limiting player adoption and retention of the service, which remains central to Xbox’s business strategy. Long-term plans reportedly include restructuring Game Pass into a more flexible subscription model, though Microsoft has indicated this transition will require time to design, test, and refine.