Lower-Priced Tiers on the Table
After a bruising year of price hikes across consoles, accessories, and Game Pass, Xbox’s new chief Asha Sharma is reportedly eyeing cheaper subscription options. The Information spoke with multiple people who met with Sharma around GDC in San Francisco and say she wants to "make future consoles and products like Game Pass more enticing to a broader range of customers," potentially by "revamping pricing models to offer lower-priced tiers."
Sharma spent GDC working the halls with both top-level executives and indie teams, laying out a vision that emphasizes growth rather than retreat. Those conversations, according to the report, included how to widen Game Pass’s reach after months of rising costs that have tested player patience.
Bundles, Ads, and What a Cheaper Tier Might Mean
Partnerships are also on the table. Netflix co-CEO Greg Peters told The Information he’s met with Sharma several times and that they’ve "kicked around ideas" for subscription bundle deals. Nothing’s signed, but the possibility of an Xbox–Netflix package suggests Microsoft is looking beyond its own ecosystem to make Game Pass feel like a better value.
Any lower-priced tier would likely come with trade-offs. Prior reporting has floated ad-supported models for subscription services, and cheaper plans often limit access to content or perks. Xbox already sells Game Pass Essential at $10 a month with the basics: a smaller library, online multiplayer, and a few extras. As the source material puts it, "It’s not getting you day one Call of Duty." If new pricing arrives, expect Microsoft to protect its most expensive benefits—day-one releases, cloud streaming, and premium EA or Ubisoft tie-ins—at higher tiers.
Why Pricing Relief Matters Right Now
Context matters here. Over the last year, Xbox raised prices on consoles and accessories in May, upped console prices in the U.S. again in September, and then lifted Game Pass rates in October—"including doubling the price of Ultimate," per The Information. Today, Xbox console prices in the U.S. start at $400 for the Series S and can hit $800 for the Galaxy Special Edition, while Game Pass Ultimate sits at $30 a month.
For many households, that math stings. A cheaper entry point could help smooth the on-ramp for new players and bring lapsed subscribers back. It also gives Microsoft flexibility in markets squeezed by tariffs and rising tech costs. Lower-cost tiers—especially if paired with a popular entertainment bundle—could bolster subscriber counts even if average revenue per user dips in the short term.
A New CEO With Something to Prove
Sharma’s appointment caught much of the industry off guard. Succeeding longtime leader Phil Spencer, the former president of Microsoft CoreAI wasn’t the name most expected to take the Xbox reins. Since stepping in, she’s been working to reassure partners and players that she isn’t here to shut down the gaming business or turn Xbox into "a machine that spits out bad generative AI." At GDC, sources told The Information her message to both execs and indies was clear: she’s here to expand Xbox.
None of this is official yet, and Microsoft hasn’t announced any new Game Pass plans or timelines. But the direction tracks with where the subscription market is heading: more tiers, more bundles, and sharper price-to-value trade-offs. If Sharma can land a credible low-cost option without hollowing out what makes Game Pass compelling, she could rebuild goodwill that eroded through last year’s hikes.
Watch for the first real tell in how Microsoft defines the compromises. An ad-supported tier, a time delay on day-one launches, a limited catalog, or region-specific bundles with partners like Netflix—any one of these would signal how aggressive Xbox plans to be. Sharma’s first big swing could set the tone for the next console cycle: make the service easier to afford, keep the best perks aspirational, and grow the pie without losing the fans who made Game Pass a hit in the first place.
