Xbox CEO Game Pass Price
Microsoft’s new gaming chief has acknowledged in an internal memo that Xbox Game Pass has priced itself out of reach for too many players — and that a structural overhaul is already in motion. The memo, first reported by The Verge today, is the clearest signal yet that the October 2025 price hike was a mistake the company is preparing to walk back, at least partially.
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What Asha Sharma actually said
The Verge obtained an internal memo sent to Xbox staff this week by Microsoft Gaming CEO Asha Sharma. The key passage:
“Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one. 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.”
That two-part framing — short-term fix, long-term restructure — is deliberate. Sharma isn’t signaling a simple price rollback. She’s indicating two distinct phases: a near-term move to improve perceived value, followed by a more fundamental redesign of how the service is tiered and sold.
How we got here: the full pricing timeline
Game Pass launched in 2017 at $10 per month. Microsoft progressively bundled Xbox Live Gold into it, rebranded the combined offering as Game Pass Ultimate, and pushed the price to $15. That held for years and represented genuine market value — a large rotating library plus online play for $15 was a hard service to argue against.
In October 2025, Microsoft raised PC Game Pass by roughly 37%, moving it from $11.99 to $16.49 per month, while Xbox Game Pass Ultimate climbed 50% — from $19.99 to $29.99. The entry-level Game Pass Essential tier currently sits at $9.99 per month.
According to The Verge’s reporting, the primary driver of the October 2025 Ultimate price hike was the cost of adding Call of Duty releases to Game Pass on day one — a commitment Microsoft made when regulators approved the Activision Blizzard acquisition. Black Ops 6 and Black Ops 7 both launched into Game Pass, and the economics apparently required a revenue adjustment.
The problem: Microsoft raised the price of Game Pass twice within 15 months, and the compound effect was a service that became harder to justify for anyone who wasn’t playing several hours a week.
What the memo likely means in practice
Sharma’s short-term “better value equation” phrasing has two plausible interpretations: adding more games to justify the current price, or lowering the price itself. Given that the memo was prompted partly by subscriber frustration rather than a desire to expand the content catalog, a pricing adjustment seems more probable — but Microsoft has not confirmed any specific changes.
Previous reporting from The Information indicated that Microsoft is exploring ad-supported tiers of Game Pass, modeled on how TV streaming services subsidize cheaper plans with advertising revenue. Sharma’s “more flexible system” language long-term aligns with that direction — more tiers, more price points, more ways for casual players to access a subset of the library at a lower monthly cost.
There are also active rumors that Microsoft may reconsider keeping Call of Duty in Game Pass entirely. Removing future Call of Duty releases from day-one access would likely allow Microsoft to lower the service price. That would represent a significant reversal of a central argument made during the Activision acquisition process, but it’s reportedly on the table — Windows Central’s Jez Corden was first to surface the possibility over the weekend.
The Netflix angle
Netflix co-CEO Greg Peters confirmed to The Information that he and Sharma have discussed ideas for a combined Netflix and Xbox Game Pass bundle. Peters said he “wouldn’t eliminate any possibilities” but acknowledged Microsoft is still working out how to make the Game Pass economics work for the company’s own bottom line before pursuing a partnership.
A Netflix bundle would address a separate problem: attracting subscribers who don’t play games daily. The overlap between Netflix households and occasional gamers is substantial, and a combined subscription at a discount could bring in users who would never have paid $30 for gaming alone. Both companies are already collaborating on an animated Minecraft show, which gives the relationship an existing operational foundation.
Sharma’s broader Xbox reset
The memo doesn’t exist in isolation. Sharma took the role of Microsoft Gaming CEO in February, replacing Phil Spencer, who retired after nearly four decades with the company. Her early moves have been pointed: she killed the “This Is An Xbox” marketing campaign, which had been widely criticized for prioritizing abstract brand positioning over actual games, and she has been active on X communicating directly with fans.
The Game Pass pricing memo fits into a larger stated goal Sharma has described as “the return of Xbox,” which also includes bringing its global FanFest event back to cities like Toronto and refocusing hardware development on the next-gen console codenamed Project Helix.
What to watch next
The memo is an intention, not an announcement. Microsoft has not updated its Game Pass pricing page and no rollout timeline has been given. Sharma acknowledged to staff that she is aware of the surrounding online speculation and would address it in more depth in coming weeks.
The next concrete opportunity for specifics is the Xbox Games Showcase on June 7, where the company is expected to lay out more of its near-term roadmap. If Sharma is serious about a short-term fix, pricing changes before that event are possible — but an announcement at the Showcase is the more natural window.
For subscribers: nothing changes yet. Game Pass Ultimate remains $29.99 per month. If you’ve been reconsidering since the October hike, it’s worth waiting to see what the short-term move actually looks like before canceling.
Frequently asked questions
Who is the new Xbox CEO?
Asha Sharma became Microsoft Gaming CEO in February 2026, replacing Phil Spencer, who retired after nearly four decades at Microsoft. Sharma previously led an executive role in Microsoft’s AI division — a background that drew scrutiny at the time of her appointment.
How much does Xbox Game Pass cost right now?
As of April 2026: Game Pass Essential is $9.99/month, PC Game Pass is $16.49/month, and Game Pass Ultimate — which includes day-one first-party releases, Xbox Live Gold, and cloud gaming — is $29.99/month. Ultimate increased by 50% in October 2025.
Will Xbox Game Pass prices actually go down?
Sharma’s memo says changes are coming but gives no timeline or specific price targets. The short-term goal is described as a “better value equation,” which could mean lower prices, more content at the current price, or new lower-cost tiers. A price cut is not confirmed.
What is the Xbox Game Pass Netflix bundle?
No bundle has been confirmed. Netflix co-CEO Greg Peters told The Information that he and Sharma have discussed bundling ideas, but that Microsoft is still figuring out the internal economics of Game Pass before pursuing a partnership.
Could Call of Duty be removed from Game Pass?
It’s being considered. Windows Central’s Jez Corden reported over the weekend that Microsoft may remove future Call of Duty releases from day-one Game Pass access — a move that would reduce the cost pressure that reportedly drove the October 2025 price hike.
When is the next Xbox announcement?
The Xbox Games Showcase is scheduled for June 7, 2026. It’s the most likely venue for Sharma to detail specific Game Pass changes publicly.
