New Xbox Boss Asha Sharma Claims Subscription Service Has Become Too Complex

Asha Sharma, the new head of Xbox, is reportedly planning a pricing overhaul for Xbox Game Pass after describing the subscription service as too expensive in an internal memo to staff.

The memo, which was seen by The Verge, indicates that Microsoft is evaluating a shift in how it delivers value to its subscribers. Sharma stated that while Game Pass remains central to the value proposition of the Xbox ecosystem, the current pricing structure is not the final version of the service.

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.

Asha Sharma internal memo

Addressing Recent Price Increases

This strategic pivot follows a significant price hike implemented in October 2025, which many observers viewed as a tipping point for the service’s accessibility.

During that update, the monthly cost of Xbox Game Pass Ultimate increased by 50%, rising from $19.99 to $29.99. Simultaneously, the price of PC Game Pass was raised from $11.99 to $16.49.

Microsoft justified these increases at the time by expanding access to Xbox Cloud Gaming and integrating Ubisoft+ Classics games into the library. However, the current leadership now appears to be acknowledging that these costs may have alienated a portion of the user base.

Proposed Pricing Tiers and Market Expansion

According to reporting from The Information, Sharma is exploring ways to make Game Pass and future Xbox consoles more enticing to a broader range of customers.

One primary avenue under consideration is the introduction of lower-priced tiers for the subscription service. This move would be designed to lower the barrier to entry for new gamers who may find the current Ultimate or PC tiers cost-prohibitive.

The shift in strategy coincides with a leadership transition at the top of the organization. Sharma, who previously served as Microsoft’s CoreAI Product president, succeeded Phil Spencer as the head of Xbox in March 2026.

Potential Strategic Partnerships

Beyond internal pricing adjustments, Sharma has also been exploring external collaborations to increase the service’s appeal. Reports indicate she has held meetings with Netflix co-CEO Greg Peters to discuss the possibility of subscription bundles.

While Peters has stated that You’ll see no solid plans for such a partnership at this time, he noted that he and Sharma have kicked around ideas regarding how the two companies might partner in the future.

Peters suggested that any potential bundle would need to be structured in a way that works for the consumer and works for both companies, while noting that Microsoft is still determining how to optimize the Game Pass bundle for its own business goals.

Evolution of the Game Pass Model

The current effort to find a better value equation reflects a broader evolution of the service since its launch in 2017. Initially, users could pay a flat fee of $9.99 for access to the entire Game Pass library.

Over time, the model has become more complex, with offerings now split between several different tiers:

• Xbox Game Pass Ultimate
• PC Game Pass
• Essential models
• Premium models

Sharma’s goal of creating a more flexible system suggests that Microsoft may move away from this rigid tiering toward a model that can better adapt to different consumer spending habits and regional markets.