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New Xbox Chief says Game Pass is ‘too expensive’, hints at future price changes and Call of Duty rethink
April 14, 2026Microsoft’s new Xbox chief, Asha Sharma, told staff in April 2026 that Game Pass has become “too expensive for players” after a 50% price hike, saying changes are coming to offer better value and greater flexibility for subscribers.
Asha Sharma, who was recently appointed as the head of Xbox, issued a frank internal memo to Microsoft gaming employees flagging major concerns over the current pricing model of Xbox Game Pass. According to the memo published by The Verge, Sharma stated, “Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one.” She directly addressed widespread criticism following last year’s 50% increase in the Ultimate tier to $29.99 / £22.99 per month, declaring, “Short term, Game Pass has become too expensive for players, so we need a better value equation. Long term, we will evolve Game Pass into a more flexible system, which will take time to test and learn around.”
Current Game Pass Structure and Pricing
The Xbox Game Pass service currently consists of several tiers, each with distinct pricing and features for users in both the US and UK. The available options as of April 2026 are:
- Ultimate: $29.99 / £22.99 per month
- Premium: $14.99 / £10.99 per month
- Essential: $9.99 / £6.99 per month
- PC Game Pass: $16.49 / £13.49 per month
Following the mid-2025 price hike, which increased the Ultimate tier by 50%, Game Pass has become one of the most expensive gaming subscription services on the market, a shift that has prompted subscriber pushback and internal debate over sustainability and value.
Call of Duty’s Role in Game Pass Price Hikes
According to reporting from Bloomberg and confirmed in the internal memo, the primary cause of last year’s significant Game Pass price increase was the inclusion of new Call of Duty releases. A former employee told Bloomberg that Xbox gave up “more than $300 million in sales” of Call of Duty on console and PC last year due to making the games available through Game Pass. This strategic shift addressed subscriber demand but had a major impact on direct sales revenue.
The internal memo further acknowledged speculation that Microsoft is considering removing Call of Duty from Game Pass in the future. Sharma reportedly said she would “go deeper” with employees on the topic in upcoming meetings, indicating that a major policy revision could be under discussion.
Official Quotes from Asha Sharma’s Memo
- “Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one.”
- “Short term, Game Pass has become too expensive for players, so we need a better value equation. Long term, we will evolve Game Pass into a more flexible system, which will take time to test and learn around.”
- On Call of Duty: Sharma said she would “go deeper” with staff on future plans related to the game series and its inclusion on Game Pass.
Game Pass: Future Direction and Industry Impact
Sharma’s memo signals a pivotal change for Microsoft’s subscription strategy. After a rapid escalation in cost, Ultimate subscribers have faced a 50% jump in less than one year, and Xbox leadership is now openly recognising the affordability issue. Sharma’s public communication marks a departure from previous leadership’s tone and suggests a business model overhaul on the horizon, potentially including lower prices or new, flexible subscription models.
The memo and ongoing discussions come amid mounting competition from Sony’s PlayStation Plus and a crowded subscription market. Pricing and value perception will play a central role in Xbox’s success in the coming years, especially if controversial Game Pass additions like Call of Duty are ultimately dialled back or removed.
In April 2026, Xbox also announced 18 new Game Pass titles for the month, including major releases like Hades 2, Kiln, and Vampire Crawlers, demonstrating the company’s ongoing investment in content as it reevaluates how to balance value, price, and long-term profitability.
Summary Table: Xbox Game Pass (as of April 2026)
- Ultimate: $29.99 / £22.99 per month (50% increase from 2025)
- Premium: $14.99 / £10.99 per month
- Essential: $9.99 / £6.99 per month
- PC Game Pass: $16.49 / £13.49 per month
- 50% price rise for the top tier occurred within the past 6 months
- “More than $300 million” in Call of Duty sales were lost in 2025 due to Game Pass
- Potential removal of Call of Duty from Game Pass under consideration
- Asha Sharma intends to further discuss with staff on the future of Game Pass pricing and content
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