Xbox CEO Calls Game Pass ‘too expensive’ in leaked memo: Will prices be cut? Here’s what Microsoft is planning

In a significant development for the gaming industry, Microsoft is reportedly reassessing the pricing structure of its flagship subscription service Xbox Game Pass, following internal concerns that the platform has become “too expensive” for players. The revelation comes through a leaked internal memo attributed to the company’s new Xbox leadership, indicating that changes may be on the horizon.

The disclosure has reignited debate around subscription fatigue in gaming, particularly after recent price hikes that drew criticism from users worldwide.

Leaked Memo Signals Strategic Shift

According to reports by Dexerto, the internal communication acknowledged that while Xbox Game Pass remains central to the Xbox ecosystem, its current pricing model may not be sustainable in the long term.


The memo reportedly noted that the service’s cost structure needs to evolve to deliver a better “value equation” for players. It also hinted at a broader transformation, suggesting that Microsoft is exploring a more flexible and adaptive subscription framework.

The candid tone of the memo reflects growing internal recognition of user dissatisfaction following steep subscription increases.

Price Hikes Trigger Backlash

The concerns follow a major pricing revision rolled out in 2025, which saw the premium tier of Xbox Game Pass rise sharply. The flagship “Ultimate” plan reportedly climbed to nearly $30 per month, marking a substantial increase that sparked widespread backlash across gaming communities.

Other tiers, including PC and console-focused subscriptions, also saw upward revisions, further fuelling criticism about affordability. For many users, the service, once celebrated for its value, began to feel increasingly premium-priced.

While content offerings have expanded, the rising costs have made players more selective about subscription-based gaming.

Exploring Cheaper Alternatives

In response to the backlash, Microsoft is now said to be exploring alternative pricing strategies, as per a report by The Information. Among the options under consideration is a lower-cost, ad-supported tier, which could allow users to access games at reduced prices or even free of cost in exchange for viewing advertisements.

Such a move would mirror trends in the streaming industry, where platforms have introduced ad-backed plans to retain cost-sensitive users. If implemented, this could mark a significant shift in how gaming subscriptions are monetised.

Additionally, discussions around bundling Xbox Game Pass with other entertainment services have reportedly taken place, though no concrete agreements have been finalised so far.

Subscription Model Under Pressure

The developments highlight a broader challenge facing subscription services across industries: balancing growth with affordability. While Xbox Game Pass has been a cornerstone of Xbox strategy, its long-term success depends on maintaining a value proposition that resonates with a diverse global audience.

The memo also acknowledged ongoing “online chatter” around pricing, suggesting that user sentiment is playing a role in shaping internal discussions. Analysts believe this could lead to a recalibration aimed at attracting new subscribers while retaining existing ones.

No Immediate Changes, But Signals Clear

Despite the concerns outlined in the Xbox leaked internal memo, no immediate pricing revisions have been officially announced. However, the acknowledgment from leadership indicates that Microsoft is actively reviewing its approach.

Any changes, experts suggest, are likely to be gradual and tested carefully, given the scale of the platform and its importance to the company’s gaming ambitions.

FAQs

What did the Xbox leaked internal memo say?

The Xbox leaked internal memo reportedly stated that Xbox Game Pass has become “too expensive” and needs changes to improve value for players.

Has Xbox Game Pass pricing changed recently?

Yes, Microsoft increased prices in 2025, with top-tier plans seeing significant hikes.