Xbox admits Game Pass is too expensive, promises changes

Xbox is overhauling its Game Pass pricing strategy after internal acknowledgment that the service has become "too expensive for players." The statement came from Asha Sharma, the new head of MicrosoftGaming, in an employee memo shared by The Verge. This shift follows sustained backlash over a 50% price hike for the Ultimate tier, now at $30 per month. The company now admits the perceived value no longer matches the cost for its user base.

The price increase, rolled out in October 2025, coincided with the addition of Call of Duty titles to the catalog. Microsoft defended the change by citing expanded content and service upgrades. Yet users rejected the rationale. Many feel the price jump doesn’t reflect proportional improvements. "The current model is not the final one," Sharma stated, emphasizing that Game Pass remains central to Xbox’s value proposition.

Sharma outlined a long-term goal to evolve Game Pass into a more flexible and balanced system. The immediate focus is on "finding a better value equation" to restore its appeal. This could mean adjusting pricing, restructuring subscription tiers, or both. The process will take time and ongoing refinement. But the direction is clear: make Game Pass accessible again without weakening its content library.

Adding Call of Duty in 2024 was a turning point. The move sparked internal debate over its impact on direct game sales. While it boosted initial interest, it failed to offset perceptions of overpricing. Recent rumors suggest the franchise might leave Game Pass. Jez Corden of Windows Central raised the possibility on the XB2+1 podcast, and Sharma confirmed it’s under active discussion.

"Game Pass has become too expensive for players, so we need a better value equation," Sharma wrote in the memo.

Game Pass has become too expensive for players, so we need a better value equation

This line captures the strategic pivot Xbox must now take. No timelines or specifics were shared, but the admission marks a clear shift. Community trust will depend on follow-through.

Xbox’s next steps will be crucial in reshaping user relationships. The promise of change raises expectations—and scrutiny. Users demand real solutions, not just statements. Microsoft now has the chance to correct course and reaffirm its commitment to fair access in digital entertainment.