The Xbox Game Pass price cut is working, Asha Sharma reportedly tells staff, but “we will not solve this in one moment or one launch”

Xbox CEO Asha Sharma reports that recent Game Pass price cuts are delivering positive results, but cautioned that more work lies ahead to restore the gaming division’s fortunes. In an internal memo obtained by The Verge, Sharma noted that acquisitions have grown and retention has improved since the price reductions were implemented in April.

The reductions came after Xbox faced significant subscriber backlash over price increases from the previous year. In October 2025, the top-tier Game Pass Ultimate was raised 50%, jumping from $19.99 to $29.99 per month. Last month’s cuts brought Ultimate down to $23, while PC Game Pass was similarly reduced.

Despite the early positive signals, Sharma cautioned against expecting a quick turnaround. “We will not solve this in one moment or one launch. We will have to outwork the problem in front of us in our path to restore durable growth,” she wrote. She acknowledged that “growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year.”

Sharma, who replaced Phil Spencer as Xbox CEO earlier in 2026, has prioritized rebuilding trust with the core gaming community. Beyond the price cuts, her team has ended the controversial “This is an Xbox” marketing campaign and overseen the rebrand to all-caps “XBOX.” She signaled that harder decisions may lie ahead for the division.

The memo suggests Microsoft is taking a longer-term view toward recovery, recognizing that a single price adjustment is insufficient to address underlying challenges to subscriber growth and retention.

The Xbox Game Pass price cut is working, Asha Sharma reportedly tells staff, but “we will not solve this in one moment or one launch”

Sources