Analysts react to Microsoft’s Xbox Game Pass price drop from CEO Asha Sharma, believe it “should help subscriber numbers grow” — “Not surprising at all”
Microsoft has reduced the monthly price of Xbox Game Pass Ultimate from $29.99 to $22.99, marking a significant cost reduction announced by new CEO Asha Sharma. The decision nearly reverses the controversial price increase implemented in October 2024, when Game Pass Ultimate jumped from $19.99 to $29.99 per month—a move that drew considerable criticism from subscribers.
Asha Sharma, who assumed leadership of Xbox following Phil Spencer’s retirement in February 2026, has signaled a shift in the platform’s pricing strategy through this cut. Industry analysts have responded positively to the announcement, expressing confidence that the lower price point “should help subscriber numbers grow.” Multiple analysts characterized the move as unsurprising, suggesting that the price reduction was an expected course correction following the negative reception of the previous year’s hike.
The price adjustment represents a 23% reduction from the October peak and brings the service closer to its original pricing structure. This strategic reversal indicates Microsoft’s focus on expanding Game Pass’s subscriber base after subscriber growth concerns emerged following the 2024 price increase. The move comes as the gaming industry continues to evaluate subscription service pricing models amid competition and shifting consumer spending patterns.