Xbox Game Pass launched in 2017 as a bold answer to the PlayStation 4's dominance, promising a Netflix-style library for $9.99 a month. Seven years and over $100 billion in investments later, the service has failed to hit subscriber targets, contributed to studio closures, and forced Microsoft to raise prices while devaluing its own biggest franchises.
Xbox CEO Asha Sharma reports positive growth and improved retention following recent Game Pass price reductions. The adjustments, made after a challenging period post-last year's price hike, are seen as a first step towards restoring durable growth. Game Pass Ultimate now costs $22.99/month, down from $29.99, with PC subscriptions reduced to $13.99 from $16.49.
