Xbox CEO Asha Sharma confirmed that Game Pass acquisitions are surging following a strategic price reduction.

The reversal follows a period of subscriber losses sparked by late 2025 price hikes.

"Growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year," said Sharma in an internal memo for the employees via Notepad. "Since our price reduction, we have seen acquisitions grow and retention improve, which is a good first step."

Microsoft brought in a host of top management changes as part of a bigger overhaul after recording diminishing revenues over several quarters from its gaming verticals.

In late 2025, Microsoft raised Xbox Game Pass subscription prices, with the Ultimate Tier costing users $29.99. This was after the company acquired Activision, which brought titles like Call of Duty into the Game Pass umbrella.

However, it was later revealed that the pricing change led to large number of cancellations and declining subscriber growth.

Sharma's move to decrease Game Pass tier prices has had a positive effect on Xbox Game Pass subscriber growth.

The PC Game Pass price came down to $13.99. Meanwhile, the Ultimate Tier dropped to $22.99, and the only change was the removal of new Call of Duty games from being available under the Game Pass umbrella on day 1. This drove not only a renewed reputation among the gaming audience but also brought back several lost subscribers.

Sharma's leadership has already begun reversing the negative brand sentiment surrounding Xbox.

Xbox CEO Outlines Future Ambitions

Microsoft's leadership overhaul is already yielding results under Sharma's direction. From getting the pricing decision correct to overseeing a broader brand repositioning, Microsoft stands vindicated for the overhaul it conducted in top management.

Sharma has outlined her future ambitions for the brand, highlighting the commitment to building a stronger image for the company.

"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. That is part of what you are starting to see in the shift from Xbox to XBOX."

The statement is rather bold. But Asha Sharma is slowly changing the narrative around Microsoft's prized yet wallowing asset.

Sharma is focused on restoring the brand's core identity through this strategic pivot.

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Written by

Abhisek Bajaj

Edited by

Pulkit Prabhav