Xbox CEO reportedly says Game Pass prices have gotten out of control in leaked memo
There's dissent in the ranks of the Green Team, as the new Xbox CEO has reportedly been caught awkwardly admitting that the price of the popular Game Pass subscription service has gotten out of hand.
It is not just streaming platforms squeezing their subscribers. While PlayStation Plus users have been met with relentless price hikes, Xbox and PC gaming have positioned themselves as potentially cheaper alternatives.
Furthermore, the looming release of GTA 6 in 2026, which will require a PS5, Xbox Series X|S, or a capable PC, continues to put pressure on platform holders to justify their costs.
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Now, it seems a leaked internal Microsoft memo couldn't have come at a more interesting time.
In a memo published by The Verge, newly appointed Xbox CEO Asha Sharma recognised that Game Pass has become 'too expensive.
"Short term, Game Pass has become too expensive for players, so we need a better value equation," Sharma's memo reads. "Long term, we will evolve Game Pass into a more flexible system which will take time to test and learn around."
She added: "Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one."
Sharma took over from industry veteran Phil Spencer back in February, coming just before he completed nearly 40 years with Microsoft.
Since stepping into the role, Sharma has already made her mark, scrapping the 'This is an Xbox' campaign and confirming that the next generation of Xbox consoles will support both Xbox console gaming and PC games. The project, known as Project Helix, also promises to 'lead in performance.'
The memo followed Xbox's latest price hike last year across its subscription tiers.
Game Pass Ultimate climbed 50 percent to $29.99 (£22.99) per month, partly due to Microsoft's decision to include Call of Duty, alongside the release of Call of Duty: Black Ops 7 just a month later. This Ultimate tier offers over 400 games on Xbox consoles, PC, and supported devices, and includes Fortnite Crew, EA Play, and Ubisoft+ Classics.
According to The Verge, Sharma also addressed the growing 'online chatter' around the Game Pass pricing and confirmed she will 'go deeper,' but there are no signs that any changes will happen immediately.
However, Reddit fans aren't finding the news encouraging as they feel that instead of lowering prices, the company will simply add 'value' to justify the price.
On a fiery Reddit thread, one user claimed: "They're going to throw in a whole bunch of stuff you'll never use to ‘increase value’. Mark my words lol."
Another user justified their decision to downgrade: "I went from Ultimate to basic when they raised the price last year. $30/month is absolute robbery.”
A third concluded: “
I've been an ultimate subscriber since it was launched, and an Xbox player since 2006. Everyone I know unsubscribed when they hiked the price, myself included. Xbox leadership needs to get a grip on the strategy and sort this mess out.”
Until Sharma pulls the trigger, it's anyone's guess about what happens next.