Xbox

Xbox CEO says Game Pass price cuts are working: “A good first step”

bekir May 29, 2026 2 min read 2 views

Xbox’s newly appointed chief executive, Asha Sharma, announced that a recent price cut on select Game Pass tiers has delivered encouraging outcomes for the platform.

In a staff memo highlighted by The Verge, Sharma reported that last month’s reductions for Game Pass Ultimate and PC Game Pass have generated a net increase in subscriptions.

“Growth slowed down, and subscriber loss accelerated after the pricing and SKU changes last year,” Sharma wrote. “Since our price reduction, we have seen acquisitions grow, and retention improve, which is a good first step.”

Analysis: The uptick in sign‑ups and retention suggests that price elasticity remains significant for Xbox’s subscription services, potentially reshaping competitive dynamics in the cloud‑gaming market.

Nonetheless, Sharma cautioned that the Game Pass ecosystem will face difficult challenges moving forward.

In a candid memo to her team, Sharma acknowledged that the challenges ahead would not be resolved overnight or in a single launch. She emphasized that the company must tackle the issues head‑on, working diligently to rebuild sustainable growth.

Sharma also addressed her recent decision to rebrand Xbox as “XBOX.” She explained that this move is part of a broader strategy to strengthen the brand, requiring tough choices about product development, investment focus, and the company’s future direction.

“This rebranding signals a deliberate shift in how we present ourselves to the players who care most about this brand,” she added, underscoring the intent to align the company’s identity with its core audience.

Since stepping into the role of Xbox chief executive earlier this year, Sharma has launched a heartfelt outreach to the franchise’s core fanbase. Beyond rebranding the Xbox label and trimming Game Pass prices, she has pledged to heed player feedback on both the console’s performance and its policy framework.

In a bold move, Sharma announced that Xbox will “reevaluate” its stance on exclusivity, signaling that she is listening to gamers who feel the platform has diminished in value after Microsoft’s decision to release its first‑party titles on competing consoles such as the PlayStation 5 and Nintendo Switch 2.

News Source: VGC

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