Xbox Game Pass has been one of the biggest talking points in gaming for years, and right now it is in a genuinely uncertain place. Microsoft raised the price of every Game Pass tier in October 2025, and just months later, the company’s own new CEO of Microsoft Gaming has acknowledged in a leaked internal memo that the service has become too expensive. So what exactly is happening, what changes are reportedly on the table, and what does this mean for subscribers? Here is everything confirmed so far.
What Is the Current Situation With Xbox Game Pass?
In October 2025, Microsoft significantly restructured and increased the price of every Xbox Game Pass tier. The company stated publicly that the decision reflected the service “delivering more value, more benefits, and more great games across every plan.” As part of that overhaul, Microsoft reorganised the service into three distinct tiers:
| Tier | Monthly Price (US) | What It Includes |
| Game Pass Essential | $9.99 | Limited library access |
| Game Pass Premium | $14.99 | Xbox-published titles within a year of launch (excludes day-one for some major titles) |
| Game Pass Ultimate | $29.99 | Full day-one access to all first-party titles including Call of Duty |
Microsoft also added partner content, including Ubisoft+ Classics, to help justify the higher pricing. However, for many subscribers, those additions did not offset the roughly 50 percent price jump on Game Pass Ultimate, which rose from $19.99 to $29.99 per month.
Now, just months after that increase, the picture looks very different. Asha Sharma, who took over as CEO of Microsoft Gaming from Phil Spencer in February 2026, has reportedly stated in a leaked internal memo that the service has become too expensive. That memo was reported by The Verge around April 13, 2026, with follow-up coverage through April 16.
According to the reported memo, Sharma said:
“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.” She also noted that “Game Pass is central to gaming value on Xbox” and made clear that “the current model isn’t the final one.”
What Changes Is Microsoft Reportedly Considering?
According to The Verge’s reporting, Sharma is exploring two significant potential changes to the Game Pass structure. It is critical to note that these remain potential options under internal discussion, not confirmed plans:
1. A First-Party Only Game Pass Tier Microsoft is reportedly considering a new lower-cost Game Pass tier that would exclusively include games from Microsoft-owned studios. This would give subscribers access to Xbox first-party titles under a more affordable subscription option rather than requiring a full Ultimate package.
2. Removing Call of Duty From Day-One Game Pass Access Microsoft is also reportedly debating whether future Call of Duty games, potentially starting with the 2026 title, should continue to arrive on Xbox Game Pass on their launch day. This would be a significant shift, as day-one Call of Duty access has been one of the service’s most powerful selling points since Microsoft completed its Activision Blizzard acquisition.
The financial logic behind this debate is notable. Providing Call of Duty on day one costs Microsoft significant revenue in foregone full-price sales, with some analyst estimates placing the figure in the hundreds of millions per title. Removing day-one access could free up budget to fund a cheaper tier or a price reduction elsewhere. However, it also carries a real risk of hurting subscriber retention, since Call of Duty remains one of the primary reasons many players maintain their Game Pass Ultimate subscription.
Why Does This Matter for Subscribers?
Both potential changes carry real consequences for anyone currently subscribed to Game Pass. Here is why each one is significant:
On the first-party tier: The appeal is clear for players who primarily use Game Pass for Xbox exclusives. However, if the new tier ends up priced higher than Game Pass Ultimate was before October 2025, it would be difficult to position as a meaningful improvement for value-conscious subscribers.
On Call of Duty day-one access: Losing day-one Call of Duty would directly impact the most subscribed tier, Game Pass Ultimate, which is the only plan that currently includes full day-one first-party access. For this change to make sense for existing subscribers, it would almost certainly need to come alongside a notable price reduction. A removal without a compensating price cut would leave Ultimate subscribers paying more for demonstrably less than they get today.
On the broader library: A portion of subscriber frustration stems from lighter-than-expected first-party output over the past year and a half. Beyond Call of Duty and a small number of standout titles, the day-one Xbox first-party slate has not consistently delivered the blockbusters that would justify $29.99 per month. This has contributed to visible subscriber dissatisfaction, community complaints, and in some cases cancellations across both the US and UK player bases.
How Did Microsoft Get Here?
The October 2025 price increase was the moment the value proposition of Xbox Game Pass started to visibly break down for a large portion of its audience. Microsoft positioned it as a reflection of added value, but the reality for many subscribers was a sharply higher monthly bill without a proportional improvement in day-one content.
The addition of Ubisoft+ Classics and other partner content helped fill some of the gap, but it did not fully address the core complaint: that day-one first-party output was not consistently strong enough to sustain the new pricing.
Sharma has taken over with Project Helix serving as a broader strategic direction for Xbox, focusing on a next-generation hybrid PC and console platform with developer alphas planned for 2027. However, firm decisions about Game Pass specifically have not been made yet. Sharma’s memo framed the longer-term vision as evolving Game Pass into a “more flexible system,” with reports suggesting this could mean more tier customisation options, regional pricing adjustments, bundling changes, or delayed day-one releases for certain major titles. Sharma herself emphasised in the memo that these changes “will take time to test and learn.”
What We Know vs. What Is Still Unconfirmed
| Detail | Status |
| Game Pass price restructure to $29.99 Ultimate (October 2025) | Confirmed |
| Phil Spencer retires, Asha Sharma becomes CEO (February 2026) | Confirmed |
| Internal memo stating Game Pass is too expensive | Reported by The Verge, April 2026 |
| Sharma quote on “better value equation” and “flexible system” | Reported, from leaked internal memo |
| “Current model isn’t the final one” (Sharma) | Reported, from leaked internal memo |
| First-party only Game Pass tier | Under consideration, not confirmed |
| Call of Duty removed from day-one Game Pass | Under consideration, not confirmed |
| Game Pass Ultimate current price | $29.99 per month |
| Microsoft official public response | Not yet provided as of publication |
What Subscribers Should Do Right Now
As of April 20, 2026, nothing has changed. Xbox Game Pass Ultimate remains at $29.99 per month, all three tiers continue as currently structured, and Call of Duty remains part of the day-one offering. No new tiers have been announced, and no pricing adjustments have been confirmed.
The most practical step for current subscribers is to monitor official Xbox and Microsoft Gaming channels for any formal announcements. Sharma’s memo makes it clear that changes are being explored, but she also emphasised they will take time to develop and test. Until Microsoft issues a public statement, the service continues exactly as it currently stands.
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