Xbox's new chief, Asha Sharma, has sent an internal memo acknowledging that Game Pass has become too expensive for players. The document, obtained by The Verge and reported today, states the subscription service is central to Xbox's value but that the current model isn't the final one. Short term, it calls for a better value equation. Long term, the plan is to evolve it into a more flexible system that will require testing.

This comes after multiple price increases, including the Ultimate tier rising to $29.99 per month from $19.99 last year following a prior hike from $16.99 in 2024. Gaming revenue declined 9 percent year-over-year in the quarter ended December 31, 2025, with further drops expected in content and services, though Game Pass growth is projected to provide some offset. Ideas for bundling with Netflix have been discussed but remain without concrete plans.

Sharma, who replaced Phil Spencer in February after heading Microsoft CoreAI, framed her priorities around great games, the return of Xbox, and the future of play. The memo arrives as subscriber fatigue appears evident across forums and social channels. In the end, this represents a mildly disappointing recognition of pricing pressure in a soul-crushing quarterly landscape.