Microsoft doesn’t know what it’s going to do with Xbox Game Pass
Microsoft faces questions about Xbox Game Pass’s future direction following subscriber backlash to price increases implemented in October 2025. Despite justifying the increases at the time by claiming the service was “delivering more value, more benefits, and more great games,” the company now appears uncertain about the subscription service’s long-term strategy.
Asha Sharma took over as CEO of Microsoft Gaming in February 2026, replacing Phil Spencer. Within months of assuming leadership, Sharma stated internally that Game Pass has become too expensive, signaling a potential strategic shift. According to The Verge’s reporting, she is actively exploring alternatives to address subscriber concerns.
Under consideration is a dedicated Game Pass tier focused exclusively on first-party games from Microsoft-owned studios. This approach would segment the service into tiers, potentially offering a lower-cost option centered on Microsoft’s internal development output while maintaining premium offerings. The company is simultaneously debating broader questions about the service’s future direction and value proposition, reflecting uncertainty about how Game Pass fits into Microsoft’s gaming strategy moving forward.