Asha Sharma, Microsoft’s newly installed Xbox chief, has declared that Game Pass has become too expensive for players, setting up a direct contradiction with the company’s recent decision to raise subscription prices by as much as 50% just last year.
Sharma, who transitioned from Microsoft’s CoreAI division to lead Xbox gaming, said in an internal memo obtained by The Verge that the current Game Pass model fails to deliver a fair value equation across diverse markets and player behaviors. She emphasized that short-term relief is needed to address affordability concerns, while long-term plans involve evolving the service into a more flexible system that will require time to test and learn.
One option under consideration is a new subscription tier limited exclusively to games from Microsoft’s own Xbox studios, a shift that would mark a departure from the all-inclusive approach that has defined Game Pass since its launch. This could allow Microsoft to lower the entry price point while preserving access to flagship titles through higher-priced tiers or add-ons.
Bundling Game Pass with third-party services is also being explored, building on earlier reports that Sharma discussed potential partnership models with Netflix co-CEO Greg Peters. Such bundles could help Microsoft grow subscription numbers and revenue without relying solely on price increases, though details remain internal and unverified.
How the Call of Duty dilemma reflects deeper strategic tensions
Perhaps the most consequential decision Sharma faces is whether to exclude future Call of Duty titles from Game Pass, a move that could alleviate cost pressures but risks undermining the service’s core value proposition. Internal debates over Call of Duty’s inclusion have persisted for years, reflecting a broader tension between using blockbuster titles to drive subscriptions and managing the financial sustainability of the service.
Why Sharma reversed the “This is an Xbox” campaign almost immediately
Shortly after taking charge, Sharma scrapped Microsoft’s “This is an Xbox” marketing campaign, which had been widely criticized internally and by hardcore fans for feeling disconnected from the brand’s identity. An unnamed Microsoft spokesperson told Windows Central that Sharma retired the ads because they “didn’t feel like Xbox,” signaling her intent to reset how the brand presents itself to players.
Context: Xbox Game Pass price increases of up to 50% last year did not affect existing auto-renewing subscribers in Germany, Ireland, South Korea, Poland, and India, though those users would be billed at current rates if they canceled and re-subscribed.What the shift toward flexibility could mean for Xbox’s future
By acknowledging that a one-size-fits-all model doesn’t work across global markets, Sharma is aligning Xbox’s strategy with the realities of varying content economics and player habits. The move toward a tiered, adaptable Game Pass system suggests Microsoft may be preparing to compete more directly with à la carte purchasing models while still leveraging subscription appeal.
Will current Game Pass subscribers see their prices change?
Microsoft has confirmed that existing customers on auto-renewing plans in select regions — Germany, Ireland, South Korea, Poland, and India — will not be affected by past price increases. However, if they cancel or repurchase their subscription, they will be charged at the current rate. No official announcement has been made about future pricing changes for current subscribers elsewhere.
Is Microsoft planning to remove Call of Duty from Game Pass entirely?
Sources indicate that Microsoft is not likely to remove existing Call of Duty titles from Game Pass for current subscribers. However, the company is considering not adding future Call of Duty releases to the service, a compromise that could reduce costs while preserving access for legacy users.
