Xbox CEO reports early gains after Game Pass price cut

Xbox CEO Asha Sharma has told employees that a recent price reduction for the Game Pass subscription service is showing early positive results, but she warned that difficult decisions and sustained effort are required to achieve a full turnaround for the brand. The internal message, sent to staff last week, frames the price cut as a first step in a broader strategy to rebuild the platform.

Sharma stated that growth for Game Pass had slowed and subscriber losses accelerated following pricing and subscription tier changes implemented last year. Since the price reduction last month, she reported seeing acquisitions grow and retention improve, calling it a good first step. Microsoft lowered the monthly cost of its top-tier Xbox Game Pass Ultimate offering and also reduced the price for PC Game Pass. A notable change accompanying the Ultimate price cut was the removal of new Call of Duty titles as day-one releases on the service; they will now be added approximately a year after launch.

Despite the encouraging initial data, Sharma emphasized that the challenges facing Xbox will not be solved by a single update or game launch. She wrote that the team will have to outwork the problem...