Xbox CEO Asha Sharma Says Game Pass Is “Too Expensive” Months After a 50% Price Hike — Changes Coming

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By TGT Staff

Xbox Game Pass Ultimate costs $29.99 per month as of October 2025 — a 50% jump from the previous $19.99 rate. Now, in a leaked internal memo to Xbox employees obtained by The Verge, new Microsoft Gaming CEO Asha Sharma has stated plainly that the service has gotten too expensive, and that pricing will change.

Sharma took over from Phil Spencer, who retired on February 23, 2026 after 38 years at Microsoft. She came from Microsoft’s CoreAI division, having previously served as COO at Instacart and VP at Meta. In her first letter to Xbox staff, Sharma promised a “return to Xbox” and committed to not chasing “soulless AI slop.” The Game Pass pricing memo is one of her first concrete internal signals about what she plans to fix. For a current look at what’s in the subscription right now, the April 2026 Game Pass games list including Hades II is worth checking.

Microsoft restructured all Game Pass tiers on October 1, 2025, renaming them and attempting to justify the Ultimate hike with bundled perks — Ubisoft+ Classics and Fortnite Crew. Sharma’s memo makes clear the value argument has not had the intended result.

The CEO’s Own Words

“The Current Model Isn’t the Final One”

Asha Sharma’s internal memo to Xbox employees — obtained by The Verge, April 2026

Leaked Internal Memo · April 2026
“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.”
50%
Price hike on Game Pass Ultimate, October 2025
$29.99
Current monthly cost for Ultimate (up from $19.99)
$300M+
Estimated CoD sales revenue foregone by putting it on Game Pass (reported 2025)
4
Current Game Pass tiers after the October 2025 restructure

How It Got Here

Game Pass: The Price Journey

From launch through Sharma’s leaked memo — the key moments in Game Pass pricing history

2017
2017 — Launch
Xbox Game Pass Launches
Microsoft launches Game Pass for Xbox consoles — a subscription giving access to a rotating library of titles for a flat monthly fee.
Jul 2024
July 2024 — First Hike
Ultimate Rises from $16.99 → $19.99/month
Microsoft raises Game Pass Ultimate to $19.99/month. The $1 introductory trial offer is also discontinued permanently at this point.
Oct 2024
October 2024 — Call of Duty Arrives
Black Ops 6 Added to Game Pass on Day One
Call of Duty: Black Ops 6 launches day one on Game Pass — the first CoD title in the subscription. This followed nearly two years of internal debate at Microsoft, with concerns that including CoD would undermine traditional game sales revenue.
Oct 2025
October 1, 2025 — The Big Restructure
Ultimate Jumps 50% to $29.99/month; All Tiers Renamed
All Game Pass plans are overhauled. Core becomes Essential ($9.99), Standard becomes Premium ($14.99), PC Game Pass rises 37% to $16.49, and Ultimate reaches $29.99 — an extra $120 per year. Ubisoft+ Classics added immediately; Fortnite Crew bundled from November 18, 2025. Effective October 1 for new subscribers, November 4 for existing ones.
Feb 2026
February 23, 2026 — New Leadership
Asha Sharma Becomes Xbox CEO; Phil Spencer Retires
Phil Spencer retires after 38 years at Microsoft, 12 as Xbox head. Sharma — previously CoreAI Product president at Microsoft, and formerly COO at Instacart and VP at Meta — takes over as EVP and CEO of Microsoft Gaming. Sarah Bond, President of Xbox, also departs. Matt Booty is promoted to EVP and Chief Content Officer.
Apr 2026
April 2026 — The Memo Leaks
Sharma Tells Staff: “Too Expensive for Players”
An internal memo to Xbox employees, obtained by The Verge, has Sharma stating Game Pass needs “a better value equation” short term, and a “more flexible system” long term. She acknowledges “online chatter” about pricing and says she will “go deeper” with the team soon. No specific timeline or plan is given.

What You’re Paying For

Game Pass Tier Explorer

Tap each tier to see exactly what’s included — and what’s not — as of April 2026

$9.99/mo
Formerly “Game Pass Core”
  • 50+ curated game library
  • Online multiplayer access
  • Cloud gaming (basic access)
  • No Day One first-party releases
  • No Call of Duty
  • No EA Play
  • No Ubisoft+ Classics or Fortnite Crew
Entry-level option focused on online multiplayer and a curated rotating library. No new releases guaranteed on any timeline.
$14.99/mo
Formerly “Standard” tier
  • 200+ game library (console, PC, cloud)
  • Xbox first-party titles approximately 1 year after launch
  • Unlimited cloud gaming
  • In-game benefits in select titles
  • No Day One first-party releases
  • No Call of Duty access at any point
  • No Fortnite Crew or Ubisoft+ Classics
Indiana Jones and the Great Circle arrived on Premium in December 2025. Avowed joined in February 2026, one year after its initial release date.
$16.49/mo
PC-only plan — up 37% from $11.99
  • Day One Xbox first-party games on PC
  • Call of Duty on Day One (PC only)
  • EA Play included
  • Ubisoft+ Classics included
  • Console play not included
  • No cloud gaming on mobile or TV devices
  • No Fortnite Crew
PC Game Pass includes Day One Call of Duty access at roughly half the monthly cost of Ultimate. The most cost-efficient option for PC-only players who want CoD day one.
$29.99/mo
Up 50% from $19.99 — effective October 1, 2025
  • 400+ games (console, PC, cloud)
  • Day One Xbox first-party releases — 75+ per year
  • Call of Duty on Day One
  • EA Play included
  • Ubisoft+ Classics (standalone value: $7.99/mo)
  • Fortnite Crew from November 18, 2025 (standalone value: $11.99/mo)
  • Enhanced cloud gaming up to 1440p resolution
  • Upgraded Microsoft Rewards
Microsoft’s stated justification: bundled Fortnite Crew and Ubisoft+ Classics carry a combined standalone value of approximately $19.98/month. The value of these additions depends on whether subscribers actively use both services.

Run the Numbers

How Much Has the Price Hike Actually Cost You?

Adjust the sliders to see the real difference since October 2025

Months subscribed 12 mo
Your monthly price $29.99
Total at current price
$359.88
At old $19.99 rate
$239.88
Over 12 months on Ultimate, the October 2025 price hike adds $120.00 compared to the previous rate.

🎮 The Call of Duty Question

The October 2025 price hike was directly connected to Microsoft’s decision to include Call of Duty in Game Pass. Tom Warren’s reporting at The Verge noted that Microsoft had debated internally for nearly two years whether to add CoD, with concerns that doing so would reduce traditional game sales revenue. In 2025, it was reported that Microsoft gave up more than $300 million in potential Call of Duty sales by including it in the subscription.

Windows Central reporter Jez Corden has since reported that the 2026 edition of Call of Duty could skip Game Pass entirely. Sharma’s memo does not address Call of Duty directly, but the question of whether it stays in the subscription sits at the centre of any pricing discussion. The current Game Pass lineup — including what’s arriving and leaving — is covered in the April 2026 Game Pass update.

What the Memo Says

Sharma’s Two-Track Approach

Short-term and long-term — what the leaked memo outlines for Game Pass

Short Term
A Better Value Equation
Sharma’s memo states directly that Game Pass has “become too expensive for players” and that Microsoft needs “a better value equation.” She told employees she would “go deeper” on specifics soon. No price changes have been confirmed and no timeline has been set.
Long Term
A More Flexible System
Sharma’s memo commits to evolving Game Pass into a “more flexible system.” She is explicit that this “will take time to test and learn around” — meaning structural changes to tiers or content access are being explored but are not imminent.

The Game Pass pricing question is part of a broader picture for Xbox right now. On the competitive side, a leaked look at Sony’s PS6 plans covering three devices and 2027 pricing adds context to what Microsoft is up against. In the gaming industry more broadly, Rockstar Games has been dealing with fallout from a major data breach linked to hacker group ShinyHunters.

For single-player news, Naughty Dog’s position on The Last of Us Part 3 has been addressed by Neil Druckmann. And if you are looking for something to play right now, the Invincible VS open beta is live on PS5 and Xbox this April.

Asha Sharma’s leaked internal memo covered her stated position on Xbox Game Pass pricing — her description of the service as “too expensive for players,” her stated need for a “better value equation” in the short term, and her intention to evolve Game Pass into a “more flexible system” over a longer period. The memo also covered Sharma’s acknowledgment of public discussion around the pricing changes.

The pricing history of Game Pass, the October 2025 tier restructure, Call of Duty’s role in the cost increase, the current tier breakdown, and both tracks of Sharma’s stated plan were addressed in this piece. For confirmed updates from Microsoft directly, the official Microsoft blog announcement of Sharma’s appointment and the Xbox Wire page on the October 2025 Game Pass restructure are the primary first-hand sources.

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