New Xbox CEO Asha Sharma has officially acknowledged that Game Pass has become "too expensive for players" and is exploring lower-priced tiers, an ad-supported option, and a potential Netflix bundle deal.
New Xbox CEO Asha Sharma has told employees in an internal memo that Game Pass has become “too expensive for players” and needs “a better value equation.” The memo, first published by The Verge, marks the clearest signal yet that Microsoft plans to reverse course on the aggressive price hikes that pushed Game Pass Ultimate to $29.99 per month in October 2025. With the service sitting at roughly 40 million subscribers in early 2026, Sharma is exploring cheaper tiers, ad-supported models, and even a potential Netflix partnership to reignite growth.
What Exactly Did Asha Sharma Say?
Sharma’s leaked internal memo to gaming employees was direct: “Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one. Short term, Game Pass has become too expensive for players, so we need a better value equation. Long term, we will evolve Game Pass into a more flexible system, which will take time to test and learn around.”
This language is notable for two reasons. First, it openly admits the October 2025 pricing restructure went too far. Second, it distinguishes between short-term affordability fixes and a longer-term structural overhaul, suggesting changes will arrive in phases rather than as a single announcement. Sharma also acknowledged “online chatter” about potential Game Pass changes and promised to “go deeper” with staff in the following week.
How Did Game Pass Pricing Get Here?
On October 1, 2025, Microsoft completely restructured Game Pass. The old Core tier became Essential ($9.99/month), Standard became Premium ($14.99/month), and Ultimate jumped a staggering 50% from $19.99 to $29.99 per month. PC Game Pass rose from $11.99 to $16.49. In Europe, Ultimate now costs £22.99 or €26.99 per month.
Microsoft added value to justify the hike: Ubisoft+ Classics, Fortnite Crew membership, over 75 day-one titles per year, and Riot Games in-game benefits. But for many subscribers, paying $360 per year (the equivalent of more than five $70 AAA games) crossed a psychological threshold. The price increase reportedly triggered a flood of cancellations so severe that Microsoft’s website temporarily crashed.
According to Bloomberg, a key driver behind the price hike was the financial impact of including Call of Duty on day one. A former Microsoft employee estimated the company gave up “more than $300 million in sales” of Call of Duty on console and PC by offering it through Game Pass.
What Cheaper Options Are Being Explored?
Multiple reports point to several concrete directions Sharma is evaluating:
Lower-priced tiers below Essential: The Information reported in March 2026 that Sharma is considering new tiers priced below the current $9.99 Essential plan. This would create a true entry-level option for price-sensitive or casual gamers.
A first-party-only tier codenamed “Triton”: A dataminer discovered a new Game Pass program called “Triton” in Microsoft’s public-facing backend. It includes only first-party Xbox Studios titles such as DOOM Eternal, Fallout 4, Gears 5, Halo 5, Ori and the Blind Forest, and The Elder Scrolls Online. No third-party games, no EA Play, no Fortnite Crew. If launched, this could be priced significantly lower than any current tier, potentially around $5 per month.
Ad-supported cloud gaming: Similar to Netflix’s ad tier, Microsoft is reportedly exploring an option where subscribers would watch advertisements in exchange for free or heavily discounted access to Game Pass titles through cloud streaming. This has been a consistent rumour since late 2025, and Sharma’s arrival appears to have accelerated exploration.
Netflix bundle deal: Sharma has been in discussions with Netflix co-CEO Greg Peters. Peters confirmed the two companies have “kicked around ideas” for subscription bundles. The logic is straightforward: Netflix’s roughly 300 million subscribers get pitched Game Pass, while Game Pass’s 40 million subscribers get pitched Netflix, creating mutual growth at a lower combined price point.
Potential removal of Call of Duty: Perhaps the most controversial option. Removing Call of Duty from day-one Game Pass access would eliminate what is reportedly the single largest cost driver behind the Ultimate price hike. Sharma acknowledged the “online chatter” about this possibility in her memo. Industry analysts believe this move alone could enable a meaningful price reduction for the Ultimate tier.
Current Game Pass Tier Breakdown (April 2026)
| Tier | US Price | UK Price | Key Features |
|---|---|---|---|
| Essential | $9.99/mo | £6.99/mo | 50+ games, online multiplayer, basic cloud gaming |
| Premium | $14.99/mo | £10.99/mo | 200+ games, first-party titles within 12 months (no CoD), cloud gaming |
| PC Game Pass | $16.49/mo | £13.49/mo | 300+ PC games, day-one access including CoD, EA Play |
| Ultimate | $29.99/mo | £22.99/mo | Everything: day-one titles, Ubisoft+ Classics, Fortnite Crew, best cloud quality |
With Ultimate accounting for roughly 70% of subscribers, any structural change to that tier would affect the majority of Game Pass users.
How Many Subscribers Does Game Pass Have?
Xbox Game Pass reached approximately 37 million subscribers by Q1 2025. Estimates for early 2026 place the number around 40 million, representing roughly 10% year-over-year growth. While that sounds healthy, growth had been slowing even before the October 2025 price hike. Microsoft has been far from its rumoured 50 million subscriber target, and the wave of cancellations following the price increase made matters worse.
On the revenue side, Game Pass generated nearly $5 billion in annual revenue for fiscal year 2025, driven partly by Call of Duty: Black Ops 6 attracting 50 million players. Sharma’s challenge is to grow the subscriber base without sacrificing this revenue, which is why cheaper supplementary tiers and ad-supported models are more likely than a straight price cut to existing plans.
What Does This Mean for European Subscribers?
European pricing has closely tracked US changes, though currency conversion and regional adjustments mean the impact varies. Ultimate currently costs €26.99 in the eurozone and £22.99 in the UK. If Microsoft introduces a new low-cost tier at around $5 in the US, European pricing would likely land in the €4-6 range.
The potential Netflix bundle could be particularly appealing in Europe, where both services have strong subscriber bases. A combined package offering Game Pass and Netflix at a meaningful discount over buying both separately could lower the effective monthly cost of gaming access for millions of players.
The Verge reported in February 2026 that Microsoft is also exploring merging PC Game Pass and Game Pass Premium into a unified cross-platform tier. This consolidation could simplify the tier structure for European subscribers who game across both PC and console.
When Could Changes Actually Arrive?
Sharma’s memo language (“time to test and learn around”) suggests these are not imminent changes. The short-term “better value equation” could materialise in the second half of 2026, possibly around a major game launch like Gears of War: E-Day or Fable. The longer-term structural overhaul, including potential tier mergers and the ad-supported model, may extend into 2027.
No further price increases appear imminent either. After two rounds of hikes in 15 months, Microsoft seems focused on rebuilding subscriber trust before making additional changes to existing tier pricing.
Things Worth Knowing Before Subscribing
Should I wait for cheaper tiers before subscribing?
If you are on the fence, waiting a few months could pay off. The Triton leak and Sharma’s comments suggest new options may surface before the end of 2026. However, if you want access to upcoming day-one titles like Forza Horizon 6, the current tiers are your only option right now.
Will existing subscribers get cheaper rates automatically?
Unlikely. New lower-priced tiers would almost certainly be separate plans with fewer features. Existing Ultimate subscribers would need to actively downgrade to benefit from lower pricing. Microsoft historically does not reduce pricing on existing tiers without restructuring them.
Could an ad-supported tier really work for games?
The streaming entertainment industry has proven the model works. Netflix’s ad-supported tier launched at a significant discount and attracted millions. For gaming, ads before launching a title (rather than during gameplay) would likely be the approach. Microsoft is reportedly targeting cloud gaming as the primary delivery method for this tier.
What happens if Call of Duty leaves Game Pass?
It would remove the single largest cost burden on the service. Analysts suggest this could enable a $5-10 reduction in Ultimate pricing. However, Call of Duty is also one of the biggest subscriber acquisition tools for Game Pass, so the trade-off is not straightforward.
The Bigger Picture: Sharma’s Vision for Xbox
Asha Sharma arrived at Microsoft Gaming from the CoreAI division and brings a growth-focused, tech-product mindset rather than a traditional gaming industry perspective. Xbox VP Jason Ronald described her approach: “She wants to retain what makes Xbox great, but at the same time, she’s willing to question everything. If you’ve been in the industry for a really long time, sometimes you build blinders. She doesn’t come in with those biases.”
This outsider perspective is already visible. Sharma killed the “This Is An Xbox” marketing campaign, committed to Xbox’s console business amid multiplatform uncertainty, hinted at the return of Xbox exclusives, and is now tackling the Game Pass pricing problem head-on. Her strategy appears to be about broadening Xbox’s reach through accessible pricing and strategic partnerships rather than squeezing maximum revenue from a smaller, dedicated base.
Whatever form the changes ultimately take, Sharma’s public acknowledgement that Game Pass is too expensive has shifted the conversation. The question is no longer whether pricing will change, but how aggressively and how soon. The next few months should provide much clearer answers.
