Xbox CEO Asha Sharma notes positive results following recent Game Pass price reductions, aiming for durable growth.
Xbox CEO Asha Sharma has observed that the recent price cuts to Game Pass have already started to show positive impacts. In an internal memo obtained by The Verge, Sharma highlighted the improvements seen since the price reductions were put into effect in April. According to Sharma, there was a slowdown in growth and an increase in subscriber loss after pricing and SKU changes last year. However, since the price reduction, there has been growth in acquisitions and an improvement in retention, which Sharma sees as a positive initial step towards progress.
Sharma emphasized that the path to restoring durable growth will require continuous effort and problem-solving, rather than being resolved instantly with a single action or launch. Additionally, Sharma discussed the recent rebranding from Xbox to XBOX, indicating a strategic move by Microsoft Gaming to strengthen the Xbox brand through careful decision-making and investment.
In April, Xbox announced price cuts for Game Pass, with Ultimate subscription dropping from $29.99 to $22.99 per month, and PC subscription decreasing from $16.49 to $13.99. Despite these reductions, the cuts did not fully reverse the 50% price increase from the previous year, where Game Pass on console was priced at $19.99 and on PC at $11.99. Looking ahead, Sharma mentioned plans to evolve Game Pass into a more adaptable system, acknowledging that this transformation will require time for testing and learning.
