Xbox Game Pass Price Cut Is Working, CEO Says
Xbox CEO Asha Sharma has confirmed that the Game Pass price cut introduced earlier this year is having a positive impact on the subscription service. In an internal memo obtained by The Verge, Sharma explained the reasoning behind one of her first major decisions as the new CEO.
The CEO acknowledged that previous pricing and SKU changes made last year had negative consequences, stating: “Growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year.” This marks the first public confirmation from Xbox leadership that the earlier price increases directly harmed subscriber acquisition and retention.
However, the situation has improved since the price reduction. According to Sharma, “Since our price reduction we have seen acquisitions grow and retention improve, which is a good first step.” The acknowledgment of these metrics as a “good first step” suggests that while the moves are working, they represent only the beginning of a larger turnaround strategy.
Despite the encouraging early results, Sharma tempered expectations about a quick recovery. She warned that Game Pass still faces significant challenges ahead and that the company “will not solve this in one moment.” This indicates that while the price cut has helped stabilize the service’s user base and attract new subscribers, Xbox leadership recognizes the need for sustained effort and additional strategies to fully address the platform’s competitive positioning.