Microsoft Gaming CEO Asha Sharma appears to be evaluating adjustments to Game Pass pricing and features. According to an internal memo viewed by The Verge, she noted that the Xbox Game Pass subscription has grown too costly for users. This statement follows Microsoft’s decision several months ago to increase the price of Game Pass Ultimate by 50 percent.
Xbox Leader Calls Game Pass Overpriced
In the memo, Sharma emphasized that Game Pass is now ‘too expensive for players’ and stressed the need for an improved value proposition. She also mentioned plans to enhance the service’s flexibility for subscribers.
‘Game Pass plays a key role in delivering gaming value on Xbox. However, the existing model is not permanent,’ Sharma stated. ‘In the near term, it’s become too pricey for users, so we must create a stronger value balance. Over time, we aim to transform Game Pass into a more adaptable option, which will require testing and refinement.’
The memo indicates that Sharma is reviewing certain platform choices made by prior executives. Shortly after succeeding Phil Spencer as Microsoft Gaming CEO in February, one of her initial actions was to discontinue the ‘This is an Xbox’ advertising initiative.
‘Asha ended ‘This is an Xbox’ as it did not align with the Xbox identity,’ a Microsoft representative informed Windows Central last month. ‘She is spearheading a redefinition of our brand presentation.’
Updates to Game Pass
Sharma’s communication to Xbox employees points to this overhaul extending to Game Pass. In October of last year, Microsoft implemented a significant 50 percent price increase for Game Pass Ultimate, the premium level. To support the higher fee, the company expanded the service’s options, now including Essential, Premium, and Ultimate levels, in addition to the PC Game Pass variant.
Earlier this year, The Verge indicated that Microsoft was exploring ways to simplify its Game Pass lineup by combining PC Game Pass with the Premium tier. Reports also suggest preparations for a complimentary, ad-based Xbox Cloud Gaming option in 2026, enabling access to cloud-based games without a subscription.
Furthermore, sources claim Sharma is contemplating a return to Xbox-exclusive titles for first-party releases. During the tenure of Spencer and former Xbox president Sarah Bond, Microsoft shifted away from exclusivity toward a cross-platform approach in 2024. Consequently, several titles previously limited to Xbox have appeared on PS5 and Nintendo Switch, with Starfield recently launching on PS5 this month.
Sharma is expected to reveal more details on her strategies for Xbox and proprietary games during the Xbox Games Showcase in June.
