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Xbox CEO called Game Pass 'too expensive for players' in a leaked memo

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Why This Matters

Xbox's new CEO, Asha Sharma, has acknowledged that the current Game Pass pricing is too high for consumers and has indicated plans to develop a more flexible and value-oriented subscription model. This shift signals a potential move towards more consumer-friendly pricing strategies, which could impact the competitive landscape of gaming subscriptions. It also reflects a broader industry trend of balancing content offerings with affordability to retain and attract subscribers.

Key Takeaways

Xbox's new chief exec, Asha Sharma, has only been in charge for a few months but things already seem like they might be changing for the better. Or at the very least, they might be getting cheaper. The Verge reported that the new Xbox CEO wrote a memo to employees addressing the current pricing of the Game Pass subscription service.

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

After Microsoft upped the price for Game Pass twice within 15 months, many of us certainly felt that the service had gotten too costly to keep. Xbox is still offering a wide range of titles on Game Pass; the April update is adding indies like Hades 2 and new Double Fine project Kiln alongside AAA hits like the remake of Call of Duty: Modern Warfare. The Verge's sources suggested that the addition of the CoD franchise might have been a factor in some of the Game Pass price increases, since Microsoft would lose out on revenue by making the latest entries in the series available under the subscription.

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It's too early to say whether this memo from Sharma means Xbox is on the brink of a resurgence. And there are changes the company could make, like adding ever more complicated tiers, that would further hamper interest and uptake of Game Pass. But acknowledging the problem, even internally, is refreshing to see after so many baffling moves from Xbox in recent years.