New Xbox Chief Asha Sharma acknowledged in a leaked memo that Game Pass pricing is unsustainable. The subscription service, central to Xbox's strategy, requires a new financial model.
Sharma, who took the CEO role months ago, told employees that while Game Pass remains crucial to Xbox's value proposition, "the current model isn't the final one." The memo, reported by The Verge, suggests the company recognizes pricing concerns among players.
Game Pass offers hundreds of games for a monthly subscription but has faced criticism over rising costs. Microsoft increased Game Pass Ultimate prices last year, with some regional tiers jumping significantly.
Sharma's comments indicate the company is exploring alternatives, though specifics remain unclear. Possible approaches include adjusted pricing tiers, modified game catalogs, or different subscription models.
The memo signals a shift in tone from Xbox leadership, acknowledging player feedback about affordability. Whether this results in price reductions or service restructuring remains undetermined, but the acknowledgment marks a notable reversal from recent price-hike strategy.
Nintendo will discontinue Mario Kart Tour on September 30, ending service for the mobile racing game. The company has no plans to release an offline version.
Microsoft has laid off the idTech team at id Software as part of broader restructuring at Bethesda. Up to 50 percent of some teams have been affected, with additional cuts potentially coming.
Microsoft is cutting 3,200 Xbox jobs and divesting studios after its Game Pass subscription strategy underperformed. Despite spending nearly $80 billion on content deals, players largely stick with a few core titles rather than exploring the service's full library.
id Software, the studio behind Doom, is reportedly cutting its workforce in half as part of broader restructuring at Xbox. The layoffs come as Microsoft continues to reshape its gaming division.