Xbox price cuts boost Game Pass subscribers, CEO Asha Sharma

Asha Sharma, in her first weeks as Xbox CEO, wrote that lowering prices for Game Pass Ultimate and PC Game Pass last month produced a net increase in subscribers. The company reported improved new-user acquisition and reduced churn after the price cuts.

Sharma wrote that changes made last year to pricing tiers and the subscription structure had slowed service growth and accelerated churn. The recent reductions addressed immediate barriers to entry and helped stabilize short-term user metrics.

She called the results a ‘good first step’ and warned the service still faces a challenging path to sustained, stable growth.

The memo named Game Pass Ultimate and PC Game Pass as the offerings whose prices were trimmed. Sharma wrote more work is required to refine the subscription strategy and maintain momentum over time.

Sharma also described a branding change from ‘Xbox’ to all-caps ‘XBOX’, saying the styling is intended to reflect more deliberate investment decisions and closer alignment with the platform’s most dedicated players.

She emphasized the need to attract new subscribers and reduce churn among existing members to reach lasting scale.