Xbox CEO Calls Game Pass ‘Too Expensive’

With hardware costs skyrocketing and recurring price hikes, many analysts are sounding the alarm: gaming is rapidly becoming a pastime reserved for the affluent. When a premium console like the PlayStation 5 Pro carries a price tag exceeding $900 after taxes, it is hard to dismiss this trend. However, whispers from within the industry suggest that publishers are finally realizing they have pushed their customer base to a breaking point. Change is inevitable, and it appears the newly appointed Xbox CEO, Asha Sharma, is acutely aware of the shifting landscape.

A leaked internal memo obtained by The Verge features Sharma contemplating the core value proposition Xbox offers its community. Central to this discussion is Game Pass, a subscription service that has faced heavy criticism following consecutive yearly price increases. Sharma acknowledged that Microsoft has yet to strike an appropriate balance between profitability and accessibility.

“In the short term, Game Pass has reached a price point that is prohibitive for many, requiring us to rethink our value equation,” Sharma noted in the memo. “Looking ahead, we aim to transition Game Pass into a more versatile model—a shift that will require careful testing and refinement.”

Image: Xbox

While the document stops short of outlining a specific roadmap, the “value crisis” has become an existential concern across the entire sector. Sony is currently experimenting with dynamic pricing models that offer tailored discounts, while Nintendo recently opted to launch digital first-party titles, starting with Yoshi and the Mysterious Book, at a lower price than their physical counterparts. Meanwhile, Epic Games faced public backlash after raising the price of V-Bucks, the digital currency fueling its Fortnite ecosystem.

Microsoft has engaged in similar experiments to gauge consumer tolerance. Their latest Game Pass price bump was ostensibly justified by bundling in perks like Fortnite Crew and Ubisoft Classics. However, anecdotal evidence suggests that some subscribers canceled their memberships in protest. Ultimately, the service’s success hinges on its library, and Microsoft has admitted that major first-party releases like The Outer Worlds 2 have underperformed against internal expectations.

Lowering the barrier to entry might be the remedy needed to win back the audience, but the logistical path to doing so remains murky. Industry rumors suggest that Microsoft might consider removing the Call of Duty franchise from Game Pass to offset costs, while other reports hint that the next-generation Xbox hardware could carry a significantly steeper price tag than the current Series X.

Whatever the strategy, all eyes are on Sharma. Despite early scrutiny over her background, a meaningful reduction in Game Pass costs could be the move that repairs the company’s relationship with its core gaming demographic.

Source: Polygon