Leaked memo reveals new Xbox CEO thinks Game Pass has become 'too expensive for players'

Microsoft's new Xbox CEO Asha Sharma has reportedly acknowledged what many subscribers have been thinking for a while: Game Pass has gotten too pricey. According to a leaked internal memo reported by Eurogamer, Sharma admitted the service has become "too expensive for players" and that the company needs to find a "better value equation."

This is a notable admission from the incoming head of Xbox, especially given that Microsoft has raised Game Pass prices multiple times in recent years. The most significant hike came in 2023 when the company restructured its subscription tiers, effectively pushing players toward pricier options while eliminating the more affordable Xbox Live Gold conversion path that had been a popular entry point.

Why this matters

Game Pass has long been Microsoft's flagship differentiator in the console wars - the pitch being that day-one access to first-party titles and a rotating library of third-party games offered undeniable value. But successive price increases, combined with a broader subscription fatigue hitting consumers across every entertainment category, have eroded that argument considerably.

The timing of this memo is interesting. Sharma is stepping into the Xbox leadership role at a challenging moment for the brand, with Microsoft's gaming division navigating significant layoffs, studio closures, and ongoing questions about its long-term hardware strategy. Publicly - or at least internally - acknowledging a core problem with the monetization model could signal a willingness to course-correct.

What could change?

The leaked memo doesn't reportedly detail any specific plans for restructuring Game Pass pricing or tiers, so players shouldn't expect an announcement imminently. But the framing of needing a "better value equation" suggests Microsoft is at least internally wrestling with how to make the service more compelling without simply adding content and hoping subscribers stay.

One possibility is a return to more aggressively tiered pricing - potentially a cheaper, more limited tier to recapture lapsed subscribers who balked at recent increases. Microsoft has experimented with ad-supported models in other products, though that would be a controversial move in the gaming space.

For now, this reads as a candid internal reckoning rather than a policy shift. But the fact that a newly installed CEO is reportedly leading with this concern suggests Game Pass pricing is a genuine strategic priority heading into the back half of 2025. Whether Sharma can translate that acknowledgment into meaningful action is the real question.