Microsoft’s marquee gaming subscription is adrift — and the new boss isn’t sure where to steer it
Xbox’s Subscription Is in Uncharted Territory
Seven months ago, Microsoft raised the price of every Xbox Game Pass tier, citing expanded value and a stronger game library. Today, the company finds itself in a strikingly different position: unsure of what that subscription should even be.
According to a recent report from The Verge’s Notepad newsletter, Asha Sharma — who stepped into the role of Microsoft Gaming CEO in February, succeeding Phil Spencer — is actively weighing internal proposals that would reshape Game Pass from the ground up. The timing is significant. The changes are coming fast, and none of them have been finalized.
The Price Problem That Started It All
The October 2025 price hike brought Game Pass Ultimate to $29.99 per month, a steep jump that left many subscribers questioning whether the service still offered genuine value. In a recent internal memo, Sharma herself reportedly acknowledged the obvious: Game Pass has gotten too expensive. That kind of candid admission from a newly appointed chief rarely signals business as usual.
It signals a reset.
The Verge’s report notes that Sharma is exploring a new tier that would focus exclusively on first-party titles — games made by Microsoft-owned studios like Bethesda, Obsidian, and The Coalition. The idea has a certain logic to it. For players who care primarily about exclusives, a streamlined, potentially cheaper option could be an appealing entry point. But if that tier is priced anywhere near what Game Pass Ultimate now costs, the value proposition may be dead on arrival.
The Call of Duty Question
Perhaps more consequential is the debate swirling around Call of Duty. Since Microsoft’s acquisition of Activision Blizzard closed in 2023, the franchise has been among Game Pass’s most prominent day-one offerings. Sharma is now reportedly reconsidering whether future Call of Duty titles should continue arriving in the subscription on launch day.
It is a question with real stakes. Call of Duty is one of the most-played franchises on the planet. Its inclusion was a key selling point for Game Pass Ultimate — the kind of headline feature that turns fence-sitters into subscribers. Pulling it back would require a significant price reduction elsewhere to avoid a backlash, and it would set a troubling precedent for how Microsoft handles its first-party portfolio within the subscription model.
If one blockbuster franchise can be quietly moved off the day-one list, what stops another from following?
A Service Without a Clear Direction
What The Verge’s reporting reveals more than anything is an absence of a defined plan. Microsoft has a broader strategic framework for its gaming division — internally referred to as Project Helix — but the specifics of Game Pass under Sharma’s leadership remain unsettled. These are not confirmed changes. They are options being weighed, ideas still in circulation, directions that have not yet found a destination.
That ambiguity is unusual for a product that once felt like the clearest competitive advantage in the console space. Game Pass was, for several years, the answer to the question of why someone might choose an Xbox over a PlayStation. It was affordable, it was stacked with content, and it removed the friction of buying individual games at full price.
That version of Game Pass no longer quite exists.
What Comes Next for Game Pass
The leadership transition, the price controversy, the internal debates — they all point to a service at a crossroads. Whether Game Pass emerges leaner, more tiered, or fundamentally restructured remains to be seen. What is clear is that the company responsible for building it has not yet figured out how to fix what it broke.
Even the CEO of Microsoft Gaming doesn’t know what Game Pass looks like a year from now. That is either the beginning of a genuine reinvention — or a cautionary tale about the cost of raising prices without a plan.
Source: Polygon