Xbox CEO: Game Pass Price Cut Raised Acquisitions, Retention

Last week Asha Sharma, chief executive of Xbox, wrote in an internal memo that a recent reduction in Game Pass pricing increased new subscriptions and improved retention. The memo said those gains reversed trends that appeared after the division changed pricing and SKU options last year.

The message noted that growth slowed and subscriber losses accelerated after the prior pricing changes. The memo quoted company data in part: “Growth [of Game Pass] slowed down and subscriber loss accelerated after the pricing and SKU changes last year. Since our price reduction we have seen acquisitions grow and retention improve, which is a good first step.”

Sharma tied a recent brand styling change from “Xbox” to “XBOX” to a narrower focus on players who care most about the brand. The memo included direction on how resources will be allocated: “We are building a stronger XBOX. That means making hard choices about what we build, where we invest, and what kind of company we need to be going forward. It reflects a decision to be deliberate in how we show up for the players who care most about this brand.”

The memo cautioned that a single change will not restore long-term growth. Teams were asked to increase speed and efficiency, prioritize projects, and accept trade-offs. Leadership used the term “outwork” to describe how teams should address issues that have limited momentum.

Sharma did not provide specific financial figures or a list of projects that will be scaled back or accelerated. The memo comes after several months of visible changes at Xbox, including the Game Pass price adjustment and the branding update. Sharma took over leadership of Xbox from her predecessor and is continuing to reshape the division.