Microsoft Gaming CEO Says Company Needs “Better Value Equation” for Game Pass

Nearly two months after Asha Sharma replaced Phil Spencer as the CEO of Microsoft Gaming, the new exec seems ready to continue to address fan feedback. We’ve already seen the Xbox team release various new Xbox console features to beta testers, and the new leadership is now looking at how to revamp Microsoft’s Xbox Game Pass subscription service to make it more affordable.

Back in October, a year after Microsoft made Call of Duty Black Ops 6 available on Game Pass on day one, Microsoft announced a 50% price hike for its Game Pass Ultimate tier, which now costs $29.99/month in the US. While Xbox Game Pass Ultimate gained classic Ubisoft games and Fortnite Crew benefits, and cloud gaming improvements along the way, many Xbox fans felt like the service was no longer a good value.

In an internal memo to Xbox employees seen by The Verge, Asha Sharma acknowledged that Microsoft probably went too far with its latest Game Pass price increases. It also doesn’t help that the company raised the price of its Xbox consoles in the US twice last year, with the Xbox Series X now starting at $649.99. Sony has since followed suit, with the PS5 now costing the same as the Series X in the country, but the damage had already been done.

“Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one,” Sharma said in the memo. “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.”

Bloomberg reported back in October that Microsoft putting Call of Duty on Game Pass on day one cost the company $300 million in lost sales. Over the weekend, Windows Central Jez Corden said on its XB2 podcast that he heard there was a “possibility” that Microsoft could take Call of Duty out of Game Pass this year. I guess that many Xbox fans would be happy to see the Game Pass Ultimate tier go back to its cheaper previous formula.

In her memo, Sharma said that she heard the “online chatter” about possible Game Pass changes and said that she’ll soon “go deeper” about that with Xbox employees. For many years, Xbox Game Pass was generally perceived as one of the best deals in gaming, and it’s unfortunate that Microsoft pretty much erased that sentiment by raising its price so dramatically.