Microsoft is reportedly preparing a substantial revamp of Xbox Game Pass that would break the service into an à la carte model, letting players pay only for the features they actually use. The news comes from a Fortune profile of Xbox CEO Asha Sharma, who has been in the role for barely six months but has already overseen a price cut for Game Pass Ultimate, signed Hideo Kojima's next-gen Metal Gear Solid spiritual successor project Physint, started two new verticals inside Xbox, and handed Halo development over to Activision. According to people familiar with the strategy, the new system would operate on a tiered structure where subscribers choose from add-ons for console-only games, cloud gaming, and multiplayer rather than buying a single bundled subscription.
This shift matters because the current Game Pass model has created tension inside Microsoft. Fortune reports that the Netflix-style monthly service helped Xbox build a subscription business, but it also led to cannibalization of sales for higher-priced first-party titles during their critical launch periods. Competing internal metrics between subscription revenue and store revenue exacerbated the problem, according to former employees. An à la carte approach could let Microsoft capture more value from players who only want cloud streaming or multiplayer access without subsidizing the full library, while potentially protecting day-one sales of major releases.
What the À La Carte Model Could Include
The reported tiered structure would separate Game Pass into distinct feature add-ons that players can mix and match. Cloud gaming would become a standalone option. Multiplayer access would be another modular component, potentially letting single-player-focused players skip the online fee entirely. Console-only game add-ons round out the reported options, suggesting Microsoft may gate certain first-party titles behind a premium tier rather than including everything in a base subscription.
For players, this granularity could mean lower monthly costs if they only need one or two features. Conversely, the total cost of assembling the full feature set à la carte could exceed the current Game Pass Ultimate price. The tiered structure also raises questions about how day-one first-party releases fit — whether they remain in a top tier, rotate across tiers, or require separate purchase even for subscribers.
Sharma's First Six Months Signal Aggressive Strategy
Asha Sharma's tenure has moved at an unusual pace for a platform holder. Beyond the Game Pass restructuring, she cut the price of Game Pass Ultimate, signed Hideo Kojima's next-gen Metal Gear Solid spiritual successor project Physint, and created two new verticals within Xbox. Handing Halo development to Activision moves the platform's flagship shooter to a studio now under the same corporate umbrella but with distinct culture and priorities. Sharma has also made a point of personally responding to customer support tickets and checking out the latest build of The Elder Scrolls 6, signaling a hands-on leadership style.
These moves collectively suggest a CEO willing to restructure core Xbox businesses rather than iterate incrementally. The Game Pass overhaul fits that pattern: it addresses a structural conflict between subscription metrics and traditional retail revenue that has persisted for years. Former employees said the cannibalization problem was exacerbated by competing internal metrics. By decoupling features, Microsoft can price each component closer to its actual value to different player segments, potentially growing total revenue while reducing the drag on launch-week sales of major releases.
Hardware Context: Handheld and Project Helix
Fortune's profile also touches on Microsoft's hardware roadmap, mentioning a next-gen Xbox handheld and the Project Helix console. The report notes that Project Helix "won't be cheap unless Microsoft chooses to subsidize any of the cost," echoing longstanding rumors about a premium next-gen device. A handheld would expand the addressable market for Game Pass cloud streaming, making the à la carte cloud tier more compelling. If Microsoft subsidizes hardware, the subscription model becomes a revenue recovery mechanism — lower upfront console cost, higher lifetime attachment via tailored subscription tiers.
The hardware and subscription strategies are intertwined. A handheld device with native cloud gaming support needs a cloud tier priced for mass adoption. A premium Project Helix console targeting enthusiasts might bundle a top-tier subscription as a value-add. The tiered structure gives Microsoft flexibility to package subscriptions differently across device categories without fracturing the core service brand. This approach mirrors how Microsoft already handles Game Pass across console, PC, and cloud — distinct libraries and features under one umbrella name.
What happens next depends on execution. The à la carte model solves internal metric conflicts but introduces consumer complexity — players must now understand which tier combination delivers the games and features they want. Microsoft's messaging will need to be clearer than the current Ultimate/Core/PC tier lineup. The company also risks alienating longtime Ultimate subscribers who perceive unbundling as a value reduction. If the reported changes materialize, expect an announcement timed to a major showcase or the next hardware reveal, with the handheld and Project Helix providing the platform context that makes the new subscription architecture feel inevitable rather than extractive.
