Microsoft's new Xbox gaming chief has acknowledged what subscribers have been complaining about for months: Game Pass pricing has crossed a line. In a leaked internal memo obtained by The Verge, Asha Sharma admitted that "Game Pass has become too expensive for players" and that Microsoft needs "a better value equation."
The admission comes just six months after Microsoft implemented a controversial 50 percent price hike for its top-tier subscription. Xbox Game Pass Ultimate jumped from $19.99 to $29.99 per month in October 2025, adding an extra $120 annually for subscribers who previously paid $240 per year.
"Short term, Game Pass has become too expensive for players, so we need a better value equation,"
she wrote in the message to Xbox employees. "Long term. We will evolve Game Pass into a more flexible system which will take time to test and learn around."
She referenced "online chatter" about potential pricing changes and said she would "go deeper" with employees next week. The timing highlights growing tension between Microsoft's subscription ambitions and financial realities.
When the company added Call of Duty to Game Pass in summer 2024, it created immediate pressure on the service's economics. According to The Verge, part of last year's cost increase was directly tied to including the blockbuster franchise.
Microsoft attempted to justify the October price hike with additional perks like Ubisoft+ Classics and Fortnite Crew membership, claiming these added about $28 monthly value for Ultimate subscribers. The company also expanded day-one releases by 50 percent and added cloud gaming improvements exclusive to the top tier.
Now speculation suggests Microsoft might reverse course on one of its most expensive commitments. Windows Central's Jez Corden recently hinted that Call of Duty could be removed from Game Pass this year.
"If they take Call of Duty out of Game Pass this year, which is a possibility from what I've heard, I think it will kind of reveal some of the cracks in the strategy,"
Corden said on the XB2+1 podcast.
Sharma's acknowledgment marks a shift for Microsoft's subscription-first approach. When she took over as Xbox chief earlier this year, she emphasized returning focus to core gaming experiences rather than broader entertainment ambitions.
Her predecessor had positioned Game Pass as central to Xbox's future, but rising costs appear to have strained that vision.
The leaked memo doesn't specify what changes Microsoft will implement, but Sharma's language suggests both short-term adjustments and long-term structural reforms are being considered. With subscriber growth reportedly slowing, Microsoft faces pressure to balance value against profitability.
Microsoft originally positioned Game Pass as Netflix for games, but unlike video streaming services facing similar challenges, it carries the additional burden of including day-one releases from major franchises. Each new AAA title added represents millions in potential retail sales sacrificed for subscription revenue.
Sharma will address Xbox employees about pricing strategy next week as Microsoft prepares its response to mounting subscriber complaints about value.
