Microsoft Says Xbox Game Pass Is Too Expensive, Plans Major Changes

Microsoft is rethinking its Xbox Game Pass strategy after years of steady expansion and recent pricing backlash. The company now admits the service may have become too expensive for players.

According to a report from The Verge, Microsoft Gaming CEO Asha Sharma shared concerns in an internal memo, describing the current Game Pass pricing model as unsustainable and not final.

Pricing Backlash and Internal Concerns

Game Pass has evolved significantly since its launch nearly a decade ago, but its biggest shift came with the introduction of tier restructuring. This change, combined with a roughly 50% increase in the price of Xbox Game Pass Ultimate, sparked criticism from players who felt the service no longer offered the same value.

Sharma’s memo suggests Microsoft is already working on adjustments. In the short term, the company plans to improve the perceived value of Game Pass, while long-term efforts will focus on building a more flexible subscription system.

New Tiers and Possible Feature Changes

One of the potential changes includes introducing new subscription tiers. A lower-cost option focused only on first-party titles has reportedly been discussed, which could reduce the overall price for users who do not need access to third-party releases.

There are also ongoing rumors that Microsoft could reconsider its day-one release strategy for major titles such as Call of Duty. Removing or limiting these releases from Game Pass could significantly reduce costs tied to licensing and distribution.

At the same time, reports suggest that Xbox Game Pass Ultimate might receive an expansion in features. However, this could be balanced by removing certain benefits to offset rising costs and maintain profitability.

Overall, Microsoft appears to be aiming for a reset. The goal is to strike a better balance between pricing, content offerings, and long-term sustainability, while also addressing growing concerns from its player base.

Despite the uncertainty around Game Pass, Xbox continues to push forward with content. More than 20 new titles are expected to arrive on the platform this week, signaling that the company is still heavily investing in its gaming ecosystem.

Via Neowin