Xbox CEO: Game Pass is “too expensive”—pricing rethink looms after $30 Ultimate hike

Xbox’s new chief calls Game Pass “too expensive,” signaling a pricing rethink

April 15, 2026 — Xbox’s subscription strategy is back under the microscope after a leaked internal memo from newly appointed Microsoft Gaming CEO Asha Sharma acknowledged that Xbox Game Pass “has become too expensive for players” and vowed to find “a better value equation.” Multiple outlets report the memo was obtained by The Verge, with summaries noting Sharma also suggested the current model will need to evolve. (windowscentral.com )

What Xbox charges today in the U.S.

• Game Pass Ultimate: $29.99/month, including cloud gaming upgrades, Ubisoft+ Classics, and Fortnite Crew benefits. (news.xbox.com )
• Game Pass Premium: $14.99/month. (news.xbox.com )
• Game Pass Essential: $9.99/month. (news.xbox.com )
• PC Game Pass: $16.49/month (PC-only). (tomshardware.com )

These prices and tiers reflect Xbox’s October 2025 overhaul that restructured the service into Essential, Premium, and Ultimate, while raising monthly fees. (news.xbox.com )

How we got here: the 2025 jump that changed the math

On October 1, 2025, Microsoft rolled out its most sweeping Game Pass changes since launch. Ultimate jumped by 50% to $29.99/month and added new perks (Ubisoft+ Classics, Fortnite Crew, enhanced cloud streaming), while Premium held at $14.99 and Essential at $9.99. PC Game Pass, sold separately, rose from $11.99 to $16.49 per month. (news.xbox.com )

The sticker shock sparked backlash—and some unusual retail pushback. GameStop publicly said it would keep selling Ultimate codes at the old $19.99 price “in‑store and online,” undercutting Microsoft’s new MSRP. (pcgamer.com )

What the new CEO said—and why it matters now

Sharma’s memo reportedly describes Game Pass as central to Xbox’s value proposition, but concedes price and structure must change to better fit what players want. The reporting also ties last year’s steep hikes to the costs of expanding day-one access, including adding new Call of Duty releases to Game Pass—a move that improves appeal but pressures margins. (windowscentral.com )

The remarks arrive less than two months after Microsoft formally named Sharma Executive Vice President and CEO of Microsoft Gaming on February 20, 2026, succeeding longtime Xbox leader Phil Spencer. The leadership shift underscores that any Game Pass pivot will be led from the very top. (blogs.microsoft.com )

What could change next

• Lower-priced tiers under consideration: Windows Central reports Sharma is evaluating “lower‑priced tiers” to make Game Pass more accessible after last fall’s hikes. Details are still fluid, but early chatter includes fewer benefits and experiments with bundles. (windowscentral.com )
• Ad-supported access: Windows Central has also discussed a 2026 move to ad‑supported cloud access—an approach streaming video platforms have used to broaden their base—though Microsoft hasn’t announced specifics. (windowscentral.com )

Any changes would need to balance consumer affordability with developer compensation and Xbox’s broader strategy to grow on console, PC, and cloud. That tension—value versus viability—is at the heart of the current rethink. (windowscentral.com )

Industry reaction: value cuts or value traps?

The idea of cheaper tiers is not universally celebrated in development circles. Larian Studios’ publishing director Michael “Cromwelp” Douse recently argued that “race to the bottom” pricing can damage sustainability in games, reflecting wider anxieties over rising production costs and a volatile market. (windowscentral.com )

What it means for subscribers right now

• Today’s price points still apply: As of April 15, 2026, Ultimate is $29.99/month, Premium is $14.99, Essential is $9.99, and PC Game Pass is $16.49. No official changes have been announced yet. (news.xbox.com )
• Expect experimentation: Based on Sharma’s memo and subsequent reporting, watch for pilots that tweak benefits, introduce ad‑supported access, or test new bundles. None are final. (windowscentral.com )
• Retail codes and promos may vary: Some retailers have historically sold discounted codes or resisted price hikes; availability and honoring of older pricing can change without notice. (pcgamer.com )

Key dates

• October 1, 2025: Microsoft rebrands and reprices Game Pass; Ultimate hits $29.99; PC Game Pass climbs to $16.49. (news.xbox.com )
• February 20, 2026: Asha Sharma named EVP & CEO, Microsoft Gaming. (blogs.microsoft.com )
• April 13–14, 2026: Memo leaks indicate Sharma says Game Pass is “too expensive” and a new value equation is needed. (windowscentral.com )

The bottom line

Sharma’s blunt assessment signals a near‑term rethink for Game Pass pricing and structure after last year’s sharp increases. The current offering remains intact today, but the message from Xbox leadership is clear: cost, value, and growth need to be realigned—and subscribers should expect the service to evolve in the months ahead. (windowscentral.com )