Xbox CEO says Game Pass will become more flexible, details still unannounced
At an October 6 internal town hall, Asha Sharma said Xbox is returning to growth and hinted at a more flexible Game Pass; no prices or tiers were confirmed.
- Asha Sharma told staff Game Pass will be more "flexible for more players"; the remarks come from a transcript, not a Microsoft announcement.
- The reported growth figure applies to first-party games only, per Windows Central's update.
- No new tiers, prices, dates or subscriber numbers were announced.
Xbox CEO Asha Sharma told employees at an internal town hall on October 6, 2026 that Xbox has "started to return to growth" and that Game Pass will become more flexible "for more players." The remarks were relayed through a transcript obtained by Windows Central, not published by Microsoft, and no new prices, tiers or dates were announced.
What Sharma reportedly said
According to Pure Xbox's summary of the transcript:
- Xbox has begun returning to growth, at "more than 2 to 3 times what we were." Windows Central later updated its report to say the chart behind that claim covered first-party games only, meaning titles Xbox owns and publishes, not the whole business.
- Hours spent are no longer declining, and positive sentiment is up 30% over the past year.
- The earlier Game Pass strategy led to "freefall" declines on the balance sheet.
- Game Pass will become more "flexible for more players." Earlier reports suggest subscribers may eventually be able to tailor the kinds of content they get. The town hall did not confirm that.
Microsoft does not disclose Game Pass subscriber numbers, and none were given at the town hall.
How Game Pass got here
- October 2025: Microsoft restructured the service. Core became Essential, Standard became Premium, and day-one releases became Ultimate-only. Ultimate rose to $29.99 a month in the US. In the UK it went from £14.99 to £29.99, according to NME.
- March 2026: The Information reported that Sharma, who succeeded Phil Spencer as head of Microsoft Gaming in February, was looking at lower-priced tiers. NME noted this came from anonymous sources and was never confirmed.
- April 21, 2026: Microsoft cut the price of Ultimate and PC Game Pass but removed new Call of Duty releases from day one. Wikipedia and several price guides list Ultimate at $22.99, Premium at $14.99, Essential at $9.99 and PC Game Pass at $13.99. Sources disagree on some figures, so check Microsoft's pricing page.
- May 2026: In an internal memo reported by Thurrott, Sharma wrote that "growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year." She added that since the price reduction, "we have seen acquisitions grow and retention improve, which is a good first step."
What is still unconfirmed
- Whether "flexible" means new lower-priced tiers, a build-your-own bundle, or something else.
- Any launch date for changes to Game Pass.
- A Game Pass bundle with Netflix. Netflix CEO Greg Peters said he and Sharma had "kicked around ideas," but no deal has been announced.
- Subscriber counts and retention rates. None have been published.
Why it matters
Game Pass is a useful case study for anyone running a subscription product. Microsoft raised prices, saw cancellations rise, then cut prices and trimmed the top tier's content to win people back. If Sharma's comments reflect the next step, the lesson is that tier structure is not settled after a launch. Operators who raised prices or collapsed plans in the past year should check churn by plan and ask customers which parts of the bundle they would drop. For buyers, the practical advice is to wait for an official announcement before committing to an annual plan.
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