Xbox Game Pass Price Cut Is Working, CEO Says
Overview & Key Takeaways
One of the first decisions that Xbox CEO Asha Sharma made after becoming the new boss earlier this year was to cut the price of Xbox Game Pass significantly. In a memo to staff recently, Sharma explained the thinking behind the price cut and talked about the impact it's making so far, saying it's helping move Xbox in the right direction.
“Growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year,” Sharma said in the memo obtained by The Verge. “Since our price reduction we have seen acquisitions grow and retention improve, which is a good first step.”
Also in the memo, Sharma said Game Pass still has a challenging road ahead.
“We will not solve this in one moment or one launch,” Sharma said. “We will have to outwork the problem in front of us in our path to restore durable growth.”
The next evolution of Game Pass launched today, with Discord Nitro members now getting access to a starter version of Game Pass for no extra charge. Looking further out, a top boss at Netflix has said Sharma is considering bundling more services into Game Pass to draw people in.
Netflix co-CEO Greg Peters said he and Sharma have “kicked around ideas” for how Netflix and Xbox could work together on subscription bundles. Nothing has been confirmed, but Peters said he “wouldn’t eliminate any possibilities.”
“You would have to do it in a way that works for the consumer and works for both companies, and frankly, I think Microsoft’s still trying to figure out how to make the Game Pass bundle work for Microsoft,” Peters said. “But what I like about Asha’s thinking is, it’s all about, ‘How do we do more?’ And it’s already been exciting to watch.”
The executive also discussed her decision to rebrand Xbox as XBOX.
"We are building a stronger XBOX. That means making hard choices about what we build, where we invest, and what kind of company we need to be going forward,” she said. “That is part of what you are starting to see in the shift from Xbox to XBOX. It reflects a decision to be deliberate in how we show up for the players who care most about this brand.”
Beyond the Game Pass price cut and the decision to change the styling of Xbox to XBOX, Sharma was personally responsible for killing off the controversial "This is an Xbox" marketing slogan.
It's a big year for Xbox, as 2026 marks the 25th anniversary of the brand. Microsoft's next big Xbox event is the Xbox Games Showcase on June 7, so be sure to keep checking back with GameSpot for more.
One of the first decisions that Xbox CEO Asha Sharma made after becoming the new boss earlier this year was to cut the price of Xbox Game Pass significantly. In a memo to staff recently, Sharma explained the thinking behind the price cut and talked about the impact it’s making so far, saying it’s helping move Xbox in the right direction.
“Growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year,” Sharma said in the memo obtained by The Verge. “Since our price reduction we have seen acquisitions grow and retention improve, which is a good first step.”
Also in the memo, Sharma said Game Pass still has a challenging road ahead.
“We will not solve this in one moment or one launch,” Sharma said. “We will have to outwork the problem in front of us in our path to restore durable growth.”
The next evolution of Game Pass launched today, with Discord Nitro members now getting access to a starter version of Game Pass for no extra charge. Looking further out, a top boss at Netflix has said Sharma is considering bundling more services into Game Pass to draw people in.
Netflix co-CEO Greg Peters said he and Sharma have “kicked around ideas” for how Netflix and Xbox could work together on subscription bundles. Nothing has been confirmed, but Peters said he “wouldn’t eliminate any possibilities.”
“You would have to do it in a way that works for the consumer and works for both companies, and frankly, I think Microsoft’s still trying to figure out how to make the Game Pass bundle work for Microsoft,” Peters said. “But what I like about Asha’s thinking is, it’s all about, ‘How do we do more?’ And it’s already been exciting to watch.”
The executive also discussed her decision to rebrand Xbox as XBOX.
“We are building a stronger XBOX. That means making hard choices about what we build, where we invest, and what kind of company we need to be going forward,” she said. “That is part of what you are starting to see in the shift from Xbox to XBOX. It reflects a decision to be deliberate in how we show up for the players who care most about this brand.”
Beyond the Game Pass price cut and the decision to change the styling of Xbox to XBOX, Sharma was personally responsible for killing off the controversial “This is an Xbox” marketing slogan.
It’s a big year for Xbox, as 2026 marks the 25th anniversary of the brand. Microsoft’s next big Xbox event is the Xbox Games Showcase on June 7, so be sure to keep checking back with GameSpot for more.
