Microsoft is preparing a shake-up of its Xbox Game Pass subscription service after internal concerns that the platform has become too expensive for players.

In a leaked memo to staff, newly appointed Xbox chief Asha Sharma (pictured) acknowledged mounting criticism over pricing, signalling potential changes to the company’s flagship gaming subscription.

“Game Pass has become too expensive for players, so we need a better value equation,” Sharma wrote, according to reports.

The comments come less than two months after Sharma took over leadership of Xbox, replacing longtime boss Phil Spencer. While she has yet to announce major public changes, the memo suggests a significant rethink of Game Pass is underway.

Xbox Game Pass Ultimate currently costs $29.99 per month following a steep price increase in 2025, a move that drew backlash from gamers globally, including in Australia where subscription fatigue is growing across digital services.

Sharma indicated that both short-term adjustments and long-term structural changes are being explored. “The current model isn’t the final one,” she said, pointing to a future “more flexible system” that will evolve over time.

Rumours suggest Microsoft could introduce cheaper tiers, rework existing plans, or even scale back premium inclusions. One key pressure point is the addition of major titles like Call of Duty to Game Pass in 2024, a move that may have impacted traditional game sales revenue.

There are also rumours Microsoft could remove blockbuster titles from the service to rebalance costs, though no decisions have been confirmed.

Sharma is expected to brief Xbox staff further in the coming weeks, with any public announcements likely to follow.