New Xbox head Asha Sharma has been discussing Xbox Game Pass’s pricing model internally. According to a leaked memo to Xbox employees, Sharma states that “Game Pass has become too expensive for players” and says the company needs to discover “a better value equation” for players.
Within the memo, first reported on by The Verge, Sharma says, “Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one.” She continues to elaborate by saying, “Short term, Game Pass has become too expensive for players, so we need a better value equation. Long term, we will evolve Game Pass into a more flexible system, which will take time to test and learn around.”
The pricing of Xbox Game Pass has become a bit contentious across the player base. Once known as “The best value in gaming,” Xbox Game Pass Ultimate has soared to $33.99/month in Canada. Last year, Microsoft restructured its tiers for Xbox Game Pass, introducing Game Pass Premium as a replacement for Standard for $17.99/month. Microsoft also introduced the $13.99/month Essential plan to replace Core.
The price increase for Xbox Game Pass Ultimate last year came out to be a 50 percent hike. At the time, Microsoft attempted to leverage inclusions like Fortnite Crew and Ubisoft+ Classics as a means to add more value to the subscription. For subscribers, it was hard to ignore the $10/month increase Game Pass Ultimate saw a year prior as well.
Windows Central’s Jez Corden recently spoke on the XB2+1 podcast about possible solutions. One of which is the potential removal of Call of Duty as a Day One inclusion on Xbox Game Pass. Call of Duty was included in Xbox Game Pass Ultimate starting in 2024, following the lengthy acquisition of Activision Blizzard. Its inclusion, while nice for existing subscribers, certainly creates tension between revenue generated by sales and additional Xbox Game Pass subscriptions.
“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, possibly,” Corden says.
Within the memo, Sharma touches on “online chatter” regarding Microsoft’s potential changes to Game Pass pricing. Without detailing any plans, the recently introduced Xbox head notes that she’ll “go deeper” with employees next week. So, it sounds as though conversations may move quickly, and an official notice and changes could be on the horizon.
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