Microsoft Gaming Chief Says Game Pass Has Become "Too Expensive for Players" in Internal Memo

Microsoft's gaming chief Asha Sharma sent an internal memo acknowledging that "Game Pass has become too expensive for players" and that Microsoft needs to develop "a better value equation" for its flagship gaming subscription service, Windows Central reported. The memo is a rare public admission from a senior Microsoft executive that its subscription pricing strategy has created friction with the players it needs to retain and convert into paying subscribers. Game Pass, which gives subscribers access to a rotating library of games for a monthly fee, has been central to Microsoft's gaming strategy since 2017 and became even more significant after the company's $69 billion acquisition of Activision Blizzard in 2023.

The Game Pass Pricing Problem

Game Pass has undergone several price increases since its launch. The Ultimate tier — which includes console Game Pass, PC Game Pass, and Xbox Live Gold — now costs $19.99 per month in the US. Microsoft also restructured its pricing tiers in 2023, eliminating lower-priced entry tiers and requiring existing subscribers to upgrade to higher-priced plans. The cumulative effect of these changes has increased the monthly cost for many subscribers by 50% or more compared to what they were paying two to three years ago. Sharma's memo suggests internal data shows the price increases have negatively affected subscriber growth or retention — a significant concern given that Game Pass subscriber counts are a key metric for Microsoft's gaming business.

The timing of the memo is notable given that Microsoft is integrating Activision Blizzard's catalog into Game Pass — a major selling point for the acquisition's value to subscribers. The gaming subscription market is increasingly competitive, with PlayStation Plus, EA Play, and Ubisoft Plus all competing for the same monthly subscription budget.

What a "Better Value Equation" Could Mean

Sharma's language — "a better value equation" — leaves open several possible directions. Microsoft could introduce new lower-priced tiers to recapture price-sensitive subscribers. It could bundle Game Pass with other Microsoft services (Microsoft 365, Azure, or hardware) to increase perceived value without reducing the subscription price. It could accelerate the cadence of first-party game releases hitting Game Pass on launch day — a benefit that has been inconsistent. Or it could restructure the tier system again, potentially reintroducing an entry-level option. What the memo signals clearly is that the current pricing structure is generating internal concern about subscriber trajectory.

Frequently Asked Questions

How much does Xbox Game Pass cost?

Game Pass Ultimate, which includes console, PC, and online multiplayer access, costs $19.99 per month in the US. Lower-priced tiers are available for PC-only or console-only access.

What did Asha Sharma say about Game Pass pricing?

In an internal memo, Microsoft gaming chief Asha Sharma said "Game Pass has become too expensive for players" and that Microsoft needs "a better value equation" — an acknowledgment that current pricing has created friction with potential and existing subscribers.

Will Microsoft reduce Game Pass prices?

The memo does not specify what changes are planned. A better value equation could mean lower prices, new tiers, bundling with other services, or accelerating the delivery of first-party game launches to Game Pass.

The Bottom Line

Asha Sharma's internal memo is the kind of document that only becomes public when the problem it describes is serious enough that many people inside the company are discussing it — and therefore difficult to contain. The acknowledgment that Game Pass is too expensive is a significant admission from a company that has staked its gaming future on the subscription model. Microsoft's next move will determine whether this is a prelude to pricing restructuring or a call to improve the content value proposition without changing prices. Either way, the memo signals that the Game Pass growth story is not going as planned, and that changes are coming.