Gaming Needs More Ads, Expert Says, And A $6 Game Pass Tier
Microsoft Gaming CEO Asha Sharma has acknowledged that Xbox Game Pass pricing has become a barrier for players, signaling the company’s intention to restructure the subscription service. In an internal memo to staff, Sharma emphasized the need to create a “better value equation” and offer greater flexibility in how players access the service.
Industry researcher and educator Joost van Dreunen has proposed that Microsoft and the broader gaming industry should consider embracing advertising as a monetization strategy alongside subscription services. Van Dreunen suggested that an “ultra-low” Game Pass tier priced at approximately $6 per month could provide an affordable entry point for budget-conscious players while incorporating advertising to offset the reduced revenue.
The proposed pricing structure reflects ongoing challenges in the subscription gaming market. A former PlayStation executive weighed in on the discussion, characterizing Game Pass as currently being in “dire straits,” adding pressure to Microsoft’s need to address the service’s competitive position and consumer accessibility.
The potential changes to Game Pass represent Microsoft’s effort to balance profitability with player retention and acquisition in an increasingly competitive gaming market. Rather than a simple price reduction, the company appears to be considering a multi-tiered approach that would allow players to choose their preferred level of service, features, and advertising exposure.