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.
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