Observed Signal · Apr 14, 2026 · Pricing Review · Source: t3n · Impact: 2/5 · Sentiment: Negative
Xbox Boss Seeks to Make Game Pass More Attractive
Following recent price hikes to the Xbox Game Pass, Xbox head Asha Sharma told staff in an internal memo that the service has become "too expensive for players" and needs a "better value equation." The article notes Microsoft increased Game Pass tier prices (Essential, Standard, Ultimate) and that Microsoft reported roughly 35 million active subscribers in June 2025. Sharma left options open for restoring value — for example, adding features to subscription tiers rather than simply cutting prices. The piece also references April rumors that Microsoft might remove the Call of Duty franchise from Day-One availability on Game Pass Ultimate, a move that could change revenue mix and enable different pricing tactics to win back subscribers.
Microsoft Xbox Game Pass price and value decisions affect subscriber retention and monetization strategy for a major gaming platform; changes could influence developer revenue and consumer spending but are not industry-shifting for AdTech.
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Key Takeaways & Evidence Grounding
- Xbox Game Pass tier prices were raised recently: Essential from €7 to €9, Standard at €13, Ultimate from €18 to about €27 per month.
- Microsoft reported roughly 35 million active Game Pass users in June 2025.
- Asha Sharma, the newly appointed head of Xbox, wrote in an internal memo that "the Game Pass is too expensive for players" and called for a "better value equation."
- The article notes April rumors that Microsoft may remove the Call of Duty franchise from Day-One availability on Game Pass Ultimate, potentially affecting monetization and pricing strategy.
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Microsoft Cuts Game Pass Prices, Reworks Call of Duty Access
Microsoft lowered subscription prices for its Game Pass services after new gaming chief Asha Sharma pledged to "recommit" to core Xbox players. Game Pass Ultimate was cut to $22.99/month from $29.99 and PC Game Pass to $13.99 from $16.49. Microsoft also said forthcoming Call of Duty releases will not be included in Game Pass on day one; players can buy new titles at launch (the latest listed at $69.99) or wait until the next holiday season for inclusion. The moves follow leadership changes in Xbox, softening subscriber economics and weaker gaming revenue: Xbox accounted for 7% of Microsoft’s Q4 revenue, with the unit down about 10% year-over-year and hardware sales down 32%. Microsoft disclosed an unspecified impairment in its gaming business after its 2023 acquisition of Activision Blizzard.
Xbox CEO Asha Sharma Targets Higher Margins by 2030
Asha Sharma, Microsoft’s new head of Xbox, outlined in an internal memo goals to widen Xbox’s margins to surpass rivals by mid-2030 and to bring margins back in line with peers by next year. Sharma — who replaced Phil Spencer in February — signaled strategic moves including investing more in Minecraft, pursuing global partnerships (including in China), expanding casual games via Activision Blizzard’s King, and holding studios and functions accountable for player and revenue growth. The memo follows a 10% quarterly revenue decline for Xbox and comes amid prior actions: subscription price cuts for Game Pass, layoffs and divestitures of studios, and Microsoft’s 2023 acquisition of Activision Blizzard.
Xbox CEO Asha Sharma Overhauls Leadership Amid Sales Decline
Asha Sharma, who became Xbox CEO in February after Phil Spencer’s departure, has reorganized Xbox’s leadership as the unit works to return to growth. In a memo Sharma said “We need to evolve how we work,” and appointed several executives from Microsoft’s CoreAI group and one director from Instacart to new Xbox roles. Named moves include Jared Palmer and Tim Allen joining Xbox from CoreAI/GitHub, Jonathan McKay becoming head of growth, and David Schloss taking charge of subscriptions and cloud. Microsoft has reported gaming revenue declines in four of the past six quarters, and industry sales data showed Nintendo’s Switch family and Sony’s PlayStation 5 outsold Xbox Series consoles in Q1. Sharma has also highlighted recent Game Pass price cuts as part of consumer-focused changes.
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