Microsoft is planning radical changes to its Xbox Game Pass service following what were described as shocking statements from the head of its gaming division, Asha Sharma, who confirmed that the service has become “too expensive” for gamers.
A new report published by The Verge reveals that Microsoft is seriously considering stopping the inclusion of new Call of Duty titles on the service upon their release. This move comes after reports indicated that adding Black Ops 6 to the service in 2024 resulted in direct sales losses estimated at $300 million, despite contributing to an increase in subscribers, prompting management to reconsider the economic viability of this model.
In a recently leaked internal memo, Sharma stated that “the current model is not the final form of the service,” indicating that the economics of content and player behavior require a more flexible system. Among the ideas being considered:
An exclusive bundle: including only games from Microsoft-owned Xbox studios at a discounted price.
Expanding the package: Integrating additional third-party services (similar to EA Play and Ubisoft+), with hints of a potential partnership with Netflix.
Economic experts, including researcher Joost van Drioten, have suggested that lowering prices alone will not guarantee the growth needed to reach 3 billion players worldwide. Instead, they have urged Microsoft to abandon its “pride” and rely on advertising to offset costs. Indeed, reports indicate that the company is considering launching a new “cloud gaming” service that would allow free gameplay in exchange for watching advertisements.
Despite these leaks, the report confirms that Asha Sharma is still in the process of listening to stakeholders and gathering data, meaning these changes will not be implemented immediately. However, these moves reflect a tacit acknowledgment by Microsoft that its current “open consumption” model requires structural reforms to ensure financial sustainability.
