Xbox's New CEO Reveals Potential Changes to Game Pass Subscription Pricing Towards Lower Prices.

With Phil Spencer's departure and Asha Sharma taking over as CEO of Xbox, it seems likely that Game Pass subscription pricing will undergo another change.

The new direction for Xbox Game Pass from the new leadership team.

According to recent reports, the head of  Microsoft's Xbox  division appears to be looking to bring the Game Pass service back to a more accessible model. This information comes as the console brand is striving to regain its position, following a recent high-level personnel change at Microsoft in the video game division.

For many years, Phil Spencer has been the face of generations of Xbox consoles, pursuing a vision that focuses on the ability to play games anytime, anywhere, rather than being dependent on hardware.

However, Spencer retired last February, marking the end of four decades with the company. Microsoft CEO Satya Nadella surprised many by choosing Asha Sharma to take over the $24 billion business. Unlike her predecessor, Sharma does not come from the gaming industry; she previously worked at companies like Meta and Instacart before leading AI projects at Microsoft.

This appointment has caused considerable concern among long-time fans and industry experts, who fear that an 'outsider' might not truly understand what makes the gaming community work and thrive. Some even worry that she was brought in to gradually reduce the hardware segment as the company shifts its focus to artificial intelligence.

Nevertheless, Xbox remains an important part of Microsoft's business portfolio, even as the company has struggled to compete with Nintendo and Sony in sales in recent years. And it seems Sharma's first move is to change the pricing of Game Pass. According to a report from  The Information,  Asha Sharma has been discussing with colleagues the introduction of cheaper subscription packages to attract players who still feel the current fees are too high.

Last year, the company drew attention when it increased the monthly subscription fee for Game Pass, with the premium "Ultimate" plan going up to $30/month. This decision angered many loyal customers, who argued that even the service considered the "best value in the gaming world" was becoming increasingly expensive.

To remedy the situation, the new CEO is reportedly considering a "restructuring" aimed at offering lower-priced service packages. While official reports haven't directly mentioned it, there's considerable speculation that this could include an ad-supported version of the service.

Similar to how streaming platforms operate, players may watch some ads in exchange for a significantly lower subscription fee, or even a free version. This would be a major shift from the current model, but aligns with the general trend of large entertainment platforms seeking to expand their user base in an increasingly competitive market.

Expanding the potential for collaboration with Netflix, launching a joint service package.

Beyond simply adding ads, there are discussions about major partnerships that could change how users bundle their entertainment packages. In an interview with  The Information, Netflix CEO Greg Peters  revealed he had several discussions with Asha Sharma to brainstorm ideas together.

Peters confirmed that the two sides had "discussed" the possibility of creating a combined subscription package between Xbox Game Pass and Netflix. This is considered a relatively logical decision based on the fact that both companies have previously collaborated on projects such as an animated series. 

Peter expressed his admiration for the new Xbox leader's ambition to "do more" and expand the brand's reach. However, he also emphasized that Microsoft is still in the process of figuring out how to make Game Pass an optimal business model with sustainable long-term profitability. 

If they can create a service package that is both attractive to consumers and improves financial efficiency for both parties, this could be a major turning point for those who currently pay for many separate services.

Looking to the future, the new leadership team has begun taking steps to distance themselves from past marketing mistakes. One of Sharma's first major decisions was to discontinue the 'This is an Xbox' campaign – a campaign that had left many loyal fans feeling undervalued, as it implied that any device with a screen could be an Xbox. She has also begun hinting at 'Project Helix' – the codename for the next generation of hardware, which could be delivered to developers as early as next year.

Previously, there were concerns that Sharma's AI platform would lead to an overabundance of AI-generated, "soulless" game content, but she has asserted that she will not pursue short-term gains, but instead focus on embracing creative risks.

Nevertheless, the pressure to improve profit margins remains immense, especially after the company failed to meet several key revenue targets since its $75 billion acquisition of Activision Blizzard. Currently, fans are waiting to see whether the "affordable packages" and partnerships with major players will actually materialize or remain merely ideas discussed in boardrooms.