Microsoft is reportedly reassessing its subscription strategy after a leaked internal memo revealed concerns over the current pricing of Xbox Game Pass. According to the report, Xbox’s new Gaming Chief Asha Sharma acknowledged that the service has “become too expensive for players,” signalling potential changes to how Game Pass is structured and priced moving forward.
Price Hikes Put Pressure on Value Proposition
The concerns come after Microsoft implemented significant price increases across Game Pass tiers in recent years. The top-tier Game Pass Ultimate subscription rose to around $29.99 per month, marking a substantial jump that has drawn criticism from users.
Internally, the company now appears to recognise that the current pricing model may not be sustainable in the long term, especially as expectations around value continue to rise among gamers. In the memo, Sharma emphasised the need for a “better value equation,” suggesting that Microsoft is actively exploring ways to rebalance pricing and benefits.
Call of Duty Integration May Have Driven Costs
One of the key factors behind the rising cost of Game Pass is believed to be the inclusion of high-profile titles such as Call of Duty. Adding blockbuster franchises to a subscription model can significantly impact traditional game sales revenue, creating financial pressure on the service.
Reports indicate that Microsoft had previously debated whether including such titles would undermine direct game sales, highlighting the trade-offs involved in expanding Game Pass’s catalogue. There are also emerging discussions about potentially removing Call of Duty from the service in the future as part of efforts to rebalance costs and value.
Shift Towards a More Flexible Subscription Model
Despite the concerns, Microsoft remains committed to Game Pass as a core part of its gaming strategy. The company is now exploring a more flexible approach that could evolve over time, rather than relying on the current fixed-tier structure.
Sharma noted that while immediate changes are unlikely, the long-term goal is to develop a system that can better adapt to user needs and pricing expectations. This could potentially include new pricing tiers, adjusted benefits, or alternative subscription models aimed at improving accessibility without compromising profitability.
No Immediate Changes, But Strategy Under Review
For now, Microsoft has not announced any official pricing revisions. However, the internal memo indicates that discussions are ongoing, with leadership planning deeper evaluations in the coming weeks. For markets like Malaysia, there is only the PC Game Pass at RM25 per month. It is still considered quite affordable due to the big library of games offered, but the price tag has been raised to RM20 in October 2025.
As Microsoft works to refine its approach, the next phase of Game Pass could determine whether it continues to lead the subscription gaming space or shifts towards a more balanced, sustainable model for both players and developers. Until then, stay tuned for more trending tech news at TechNave.com.
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