Microsoft admits Xbox Game Pass pricing is too high, plans changes

Microsoft's new Xbox chief Asha Sharma has acknowledged Xbox Game Pass pricing is too high, according to a leaked internal memo obtained by The Verge. In the memo to Xbox employees, Sharma states 'Game Pass has become too expensive for players' and confirms Microsoft needs a 'better value equation' for the subscription service.

What the Xbox chief said about pricing

According to the leaked memo, Sharma outlined both short and long-term plans for Game Pass pricing. 'Short term, Game Pass has become too expensive for players, so we need a better value equation,' she wrote. 'Long term, we will evolve Game Pass into a more flexible system which will take time to test and learn around.'

The memo acknowledges that whilst 'Game Pass is central to gaming value on Xbox,' the current model clearly isn't the final version. This suggests Microsoft is actively working on changes to address subscriber concerns about the service's cost.

The 50% price hike that changed everything

Microsoft increased Xbox Game Pass Ultimate pricing by 50% to $29.99 monthly in 2025, up from the previous $19.99 rate. The substantial price jump coincided with adding Call of Duty games to the Game Pass lineup, which Microsoft had debated internally for nearly two years.

According to previous reporting, some Microsoft executives worried that including Call of Duty in Game Pass would cannibalise traditional game sales revenue. The franchise typically generates billions in direct sales, making the subscription model economics challenging for such blockbuster titles.

What this means for Game Pass subscribers

The internal admission suggests Microsoft recognises the current pricing has created barriers for potential subscribers. Industry analysts have noted that the $29.99 monthly cost approaches the price of buying one new game every other month, potentially reducing the service's value proposition.

Sharma's mention of a 'more flexible system' could indicate multiple subscription tiers, regional pricing adjustments, or alternative payment models. Microsoft has previously experimented with annual subscriptions and family plans in select markets.

UAE gaming impact and regional considerations

UAE gamers currently access Xbox Game Pass through global pricing, which converts to approximately Dhs 110 monthly for Ultimate subscriptions. Any pricing restructuring could significantly impact regional subscribers, especially if Microsoft introduces localised rates or new tier options.

Regional gaming spending patterns in the Middle East often favour premium content, but the current Game Pass pricing sits at the higher end of subscription entertainment services available in the UAE market. Microsoft's acknowledgement of pricing concerns could lead to more competitive rates for emerging gaming markets.

Frequently Asked Questions

Why is Xbox Game Pass changing its pricing?

According to a leaked memo from Xbox chief Asha Sharma, Microsoft believes the current Game Pass model has become too expensive for players, necessitating a better value equation and more flexible system.

Who is Asha Sharma?

Asha Sharma is Microsoft's new Xbox chief who recently commented on Xbox Game Pass pricing in an internal memo to Xbox employees.

How much did Xbox Game Pass Ultimate increase in price?

Xbox Game Pass Ultimate increased by 50% to $29.99 per month from its previous price of $19.99, largely due to adding Call of Duty games to the service.

When will Xbox Game Pass pricing change?

Microsoft has not announced specific timing for pricing changes, only that they plan to evolve Game Pass into a 'more flexible system' that will take time to test.

How much is Xbox Game Pass in the UAE?

Xbox Game Pass Ultimate costs approximately Dhs 110 per month in the UAE, based on the current $29.99 USD pricing and currency conversion rates.

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