When Microsoft raised the price of Xbox Game Pass Ultimate to $29.99 a month last year, the reaction from players was immediate. The subscription had long been positioned as one of the best deals in gaming, but a fifty percent jump pushed many to wonder whether the value still matched the cost. Now, a leaked internal memo suggests that Microsoft’s new Xbox chief, Asha Sharma, is wondering the same thing.
In the memo, Sharma reportedly tells employees that Game Pass has become too expensive for players and that the company needs a better value equation. It is a rare acknowledgment from inside Xbox leadership that the current model is straining the audience it was designed to attract. The memo also hints at a longer-term plan to evolve Game Pass into a more flexible system, something Sharma says will take time to test and refine.
The price hike did not happen in a vacuum. Microsoft’s decision to add Call of Duty to Game Pass in 2024 was a major factor in the increased cost. Internally, there had been debate about whether putting such a reliable sales juggernaut into a subscription service would undermine traditional revenue. The company ultimately went ahead, but the financial tradeoffs appear to be resurfacing. Over the weekend, reporting from Windows Central suggested that Microsoft may even be considering pulling Call of Duty out of Game Pass this year, a move that would signal a significant shift in strategy.
Sharma’s memo also references the online chatter around potential pricing changes. That acknowledgment alone suggests that Xbox leadership is paying close attention to the public mood. While no immediate changes are expected, Sharma plans to address the topic more deeply with employees next week, which implies that adjustments are not far off.
For players, the takeaway is that Microsoft seems ready to rethink the subscription that has defined the Xbox ecosystem for years. Whether that means lower prices, new tiers, or a reimagined model entirely remains to be seen. What is clear is that the company recognizes the tension between rising costs and player expectations, and it is preparing to recalibrate before that tension becomes a long-term problem.
