Why is Xbox Game Pass reportedly too expensive now?

Microsoft’s Xbox chief calls Game Pass pricing “too expensive”

Microsoft’s new Xbox gaming chief, Asha Sharma, reportedly told Xbox employees in an internal memo that Xbox Game Pass has become “too expensive.” The memo—obtained by The Verge—doesn’t include concrete pricing changes in the leaked text, but it clearly signals that Microsoft intends to revise how Game Pass is priced.

The context matters: Microsoft is essentially acknowledging an internal assessment that the current economics of the subscription service are no longer aligned with where the company wants the product to land. Instead of treating Game Pass as a permanent constant, Sharma frames the pricing as something that needs to change, suggesting either a restructuring of tiers, a shift in price points, or another adjustment to keep costs in check.

What we can state from the available details

• The comment is an explicit internal admission, not a public-facing announcement.
• The direction is about cost and sustainability—pricing has reached a level the chief characterizes as excessive.
• No specific new prices, tier names, or effective dates are provided in the leaked snippet.

Why it’s important

Game Pass pricing is one of the most consequential levers in console subscription gaming. Any upward pressure can affect player demand, long-term retention, and how publishers evaluate subscription performance. Conversely, downward or restructured pricing can change how competitors respond.

For now, players should treat this as an early indicator that Microsoft is preparing a pricing strategy update for Game Pass. The practical takeaway is that subscription budgeting may change—and the service’s public pricing mechanics are likely to be revisited rather than remaining static.