Microsoft is Reportedly Considering Cheaper Xbox Game Pass Tiers and Netflix Bundle

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Microsoft is reportedly considering significant changes to Xbox Game Pass as it looks to reignite growth and make the service more accessible following recent price increases and subscriber backlash. Under the leadership of new Microsoft Gaming CEO Asha Sharma, the company is exploring alternative pricing models, including cheaper subscription tiers and potential partnerships, in an effort to expand its audience beyond core players.

According to a report from The Information, Sharma has begun evaluating ways to restructure Game Pass pricing after the service faced criticism in late 2025. Microsoft raised the price of Game Pass Ultimate by roughly 50 percent in some markets, bringing the monthly cost to around $30.

The increase triggered a wave of complaints from users, with many citing affordability concerns amid broader economic pressures. Subscriber growth had already shown signs of slowing prior to the hike, raising questions about the long-term sustainability of one of Xbox’s most important pillars.

In response, Sharma is said to be considering the introduction of lower-cost subscription options designed to reduce the barrier to entry. Among the ideas being discussed is an ad-supported tier, which would allow users to access games at a reduced price, or potentially even for free in limited scenarios, by incorporating advertisements. The concept mirrors strategies used by major streaming platforms, where ad-supported plans have helped attract more price-sensitive consumers while maintaining revenue streams.

Microsoft is also reportedly exploring partnerships that could further improve the value of Game Pass. Discussions have taken place with Netflix co-CEO Greg Peters about the possibility of bundling the gaming subscription with Netflix’s streaming service. While no formal agreement has been announced, both sides have acknowledged that conversations are ongoing.

These potential changes come alongside broader strategic shifts within Xbox. Since taking over earlier this year following Phil Spencer’s retirement, Sharma has moved quickly to redefine the brand’s direction. One of her first decisions was to end the “This is an Xbox” marketing campaign, which had drawn criticism for lacking clarity and diluting the identity of the platform.

In its place, Sharma has emphasized a “return to Xbox,” focusing on core gaming values such as dedicated hardware, strong first-party titles, and creative, emotionally driven experiences. She has also publicly expressed skepticism toward low-quality, AI-generated content, signaling a commitment to maintaining a higher standard for games within the ecosystem. At the same time, she continues to support the evolution of gaming through cloud services and multi-platform accessibility.

While the proposed Game Pass changes remain in the early stages, they point to a broader effort to stabilize and grow the service after a turbulent period. By experimenting with new pricing models and exploring strategic partnerships, Microsoft appears to be aiming for a more flexible and inclusive approach, one that can attract new users without losing sight of its core audience.