Asha Sharma, Microsoft’s new Xbox chief, has reportedly said that Game Pass has “become too expensive for players,” and that Microsoft needs “a better value equation” around the subscription service.
The report comes from The Verge, based on an internal memo from Sharma to Xbox employees that was obtained by the publication. “Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one,” Sharma reportedly said.
“Short term, Game Pass has become too expensive for players, so we need a better value equation. Long term, we will evolve Game Pass into a more flexible system which will take time to test and learn around.”
Back in November of last year, Microsoft reworked its Xbox subscription service to “offer more flexibility, choice, and value to all players.” This resulted in the introduction of new tiers and pricing options, with the highest tier, Ultimate, increasing by 50 percent to $29.99/month from $19.99/month. Microsoft last increased the price for its Ultimate tier in 2024, when it raised the price to $19.99/month from $16.99/month.
Earlier this year, Microsoft reported that its gaming revenue decreased by 9 percent year-on-year during the second quarter ended December 31, 2025. The decline was once again due to waning Xbox hardware and Xbox content and services revenue.
The company expects Xbox content and services revenue to decline once again in Q3, but predicted that continued downturn will be “partially offset by growth in Xbox Game Pass.”
In addition, Xbox and Netflix have “kicked around ideas” for subscription bundles that could potentially pair Xbox Game Pass with the popular entertainment streaming service. That said, there are currently no concrete plans for a Netflix-Game Pass deal.
Sharma, previously the president of Microsoft CoreAI, replaced Microsoft Gaming CEO Phil Spencer in February, after the executive retired from the company. At the time, Sharma informed employees that her “first job” involves making three commitments to “great games,” “the return of Xbox,” and “the future of play.”
“As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop,” she added. “Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.”
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