Microsoft’s new head of Xbox, Asha Sharma, has told employees that Game Pass has become “too expensive” and suggested that the subscription service’s pricing is about to change.
In an internal memo sent to gaming employees, first published by The Verge, Sharma said that the service needs “a better value equation”, six months after Microsoft hiked the price of its top Game Pass tier by 50% to $30 / £23 per month.
“Game Pass is central to gaming value on Xbox. It’s also clear that the current model isn’t the final one,” Sharma wrote.
“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.”
Currently, Xbox Game Pass is available in Ultimate ($29.99 / £22.99 per month), Premium ($14.99 / £10.99 per month), Essential ($9.99 / £6.99 per month), and PC Game Pass ($16.49 / £13.49) tiers.
According to reports, part of the reason for the Game Pass price increases last year was the inclusion of new Call of Duty games in the service, which would’ve likely cost Microsoft significant sales revenue.
Per a Bloomberg report, last year’s Game Pass price rises arrived after Xbox gave up “more than $300 million in sales” of Call of Duty on console and PCs last year, according to a former employee.
It’s been claimed that Microsoft might be considering removing Call of Duty from the service in the future – claims that Sharma reportedly acknowledged in her internal memo, stating that she would “go deeper” with employees next week.
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