Game Pass price cut drives sign-ups and retention, Xbox says

An internal memo shared with The Verge says lowering the price of Game Pass is having the intended effect. Xbox CEO Asha Sharma wrote that the service needed 'a better value equation' after a price jump in October 2025 that saw Game Pass Ultimate rise 50 percent from $19.99 to $29.99 per month.

A week after Sharma's comment Microsoft reduced some prices, though they remain above pre‑October levels — Game Pass Ultimate, for example, went down to $22.99 per month. The company accepted trade‑offs: Call of Duty titles will no longer appear on Game Pass at launch and will instead be added about a year later.

Sharma noted that growth had slowed and subscriber losses accelerated following last year’s pricing and SKU changes, and that since the reduction the business has seen acquisitions grow and retention improve. She added that the situation will not be fixed by a single release and that Xbox will have to 'outwork the problem' to restore durable growth.

game pass, xbox, microsoft, price cut, price increase, subscriptions, retention, asha sharma, launch timing, sku changes