Leaked Xbox Memo: Microsoft Gaming CEO Admits Game Pass Has 'Become Too Expensive for Players'
A leaked internal memo from Microsoft Gaming CEO Asha Sharma reveals that the company's own leadership believes Xbox Game Pass has become "too expensive for players" and that Microsoft needs "a better value equation." The candid admission, reported by The Verge, comes as Microsoft faces mounting pressure to justify Game Pass pricing in an increasingly competitive gaming subscription market.
What the Memo Says
The memo, circulated internally at Microsoft Gaming, shows CEO Asha Sharma acknowledging that Game Pass pricing is a barrier to growth. The exact quote — "Game Pass has become too expensive for players" — is striking coming from the executive leading the Xbox business. Sharma also calls for rethinking the "value equation," suggesting Microsoft is actively evaluating its subscription tiers, pricing structure, and the content lineup used to justify the cost.
Game Pass Pricing History
Microsoft raised Game Pass prices significantly in 2023, with the standard Game Pass tier increasing from $9.99 to $14.99 per month, and Game Pass Ultimate jumping to $19.99. The removal of the entry-level Game Pass for Console tier and its replacement with a pricier option drew significant consumer backlash at the time. The leaked memo suggests that internal data is now confirming what many players complained about: the price increases have hurt subscriber growth or retention.
Competition from PlayStation and Nintendo
Microsoft's Game Pass pricing challenge is compounded by the competitive environment. Sony's PlayStation Plus offers a tiered subscription with a large back-catalog at competitive price points, and Nintendo Switch Online remains the most affordable major gaming subscription. If Game Pass is perceived as poor value relative to alternatives, subscribers will vote with their wallets. Microsoft needs its first-party titles — Halo, Forza, Starfield, and future acquisitions — to anchor its value proposition more convincingly.
What Changes Are Coming?
Microsoft has not made any official pricing announcements following the leaked memo. However, the language in Sharma's note strongly implies that changes are being considered — whether through lower-priced tiers, bundled offers, or better content availability. The gaming industry is watching closely: if Microsoft pivots its Game Pass strategy, it could reshape the subscription gaming market dynamics that the company itself helped create.
The Bottom Line
When the CEO of Xbox Gaming admits internally that Game Pass is too expensive, it's a significant moment. Microsoft built its gaming strategy around subscription growth, and if that strategy is struggling with pricing headwinds, adjustments are inevitable. The question is whether Microsoft can redesign its value proposition without undermining the revenue it needs to fund its multi-billion-dollar gaming acquisitions.