Xbox Admits Previous Game Pass Changes Hurt Growth

If you enjoy independent indie game coverage, consider supporting Indie-Games.eu on Patreon. It helps keep the site independent.

In an internal memo obtained by The Verge, Xbox CEO Asha Sharma reportedly confirmed that subscriber acquisition and retention have improved since Microsoft lowered Game Pass pricing back in April.

According to Sharma, growth slowed significantly after last year’s controversial pricing and tier changes, while subscriber losses accelerated. The recent reductions appear to be the company’s first real step toward stabilizing the service again.

The updated pricing lowered Game Pass Ultimate from $29.99 to $22.99 per month, while the PC version dropped from $16.49 to $13.99. Even with the reductions, prices still remain noticeably higher than they were before last year’s increases. Sharma also made it clear that Xbox does not expect a quick fix.

Instead, Microsoft plans to gradually reshape Game Pass into what Sharma described as a more flexible system. That likely means further experimentation with pricing models, subscription tiers, and partnerships over time. One of those newer partnerships already involves Discord. Earlier this month, Xbox and Discord introduced a Game Pass “starter edition” for Nitro subscribers, giving users access to over 50 games alongside limited cloud gaming support.

Beyond pricing, Sharma also addressed Microsoft’s recent shift from “Xbox” branding to the stylized “XBOX” presentation. According to the memo, the change reflects a broader effort to redefine the brand and focus more directly on dedicated players. Sharma described the current period as one where Microsoft is making difficult decisions about investments, priorities, and the future direction of the gaming business overall.