Highlights
- XBOX says Game Pass sign-ups and retention improved after subscription price cuts in April 2026.
- Asha Sharma warns recovery will take time, with broader changes planned for the Game Pass model.
- XBOX expands partnerships and rebranding efforts as the company reassesses exclusivity and platform strategy.
XBOX chief executive Asha Sharma says Microsoft's recent Game Pass price reductions are starting to work. Sharma said subscriber acquisition and retention have improved since the company lowered the cost of key Game Pass tiers in April 2026.
In an internal memo to employees obtained by The Verge and cited by other outlets, Sharma wrote that "Growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year." Since the latest reductions, she wrote, acquisitions have grown and retention has improved, which she called "a good first step."
Microsoft cut the monthly price of Game Pass Ultimate from $29.99 to $22.99 and PC Game Pass from $16.49 to $13.99 in April. The reductions followed last year's increases, when the two tiers were priced at $19.99 and $11.99, respectively.
XBOX plans broader changes for Game Pass
Sharma cautioned that the price cuts alone would not restore long-term growth. She said XBOX would not solve the problem "in one moment or one launch" and would have to work to rebuild durable subscriber momentum.
In an earlier memo, Sharma said XBOX plans to evolve Game Pass into a more flexible subscription system, with further testing and adjustments over time.
The company has also expanded the service through new partnerships. On May 11, XBOX and Discord added a Game Pass Starter Edition to Discord's Nitro Rewards program, giving Nitro subscribers more than 50 games, about 10 hours of monthly cloud gaming, and partner hardware discounts.
Discord/Official Site
Rebrand tied to new XBOX strategy
Sharma also addressed Microsoft's shift from "Xbox" to the all-caps "XBOX" branding. She said the change reflects decisions about what the company builds, where it invests, and how it serves the players who care most about the brand.
Since succeeding Phil Spencer in February 2026, Sharma has pushed several initiatives aimed at rebuilding trust with core fans. They include commitments to act on player feedback and a willingness to reassess Microsoft's approach to exclusivity, a point of criticism as more first-party games reach PlayStation 5 and Nintendo Switch 2.
Sharma's comments land ahead of the XBOX showcase on June 7, 2026.
