Xbox Game Pass ‘has become too expensive,’ says Microsoft’s new gaming chief in leaked memo

Microsoft’s new Xbox chief, Asha Sharma, has signaled that Xbox Game Pass pricing is about to change. In an internal memo to Xbox employees, obtained by The Verge, Sharma admits that “Game Pass has become too expensive for players” and that Microsoft needs “a better value equation.”

“Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one,” says Sharma. “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.”

Microsoft hiked the price of Xbox Game Pass Ultimate to $29.99 per month last year, a massive 50 percent hike. The company tried to justify the price hike with a variety of upgrades across all of its Xbox Game Pass tiers, but the cost increase has clearly taken its toll on Game Pass.

I understand that part of the cost increase for Game Pass was down to…