Xbox reportedly resets Game Pass: CEO says old plan caused ‘freefall’

Xbox has apparently overhauled its Xbox Game Pass plan after Xbox CEO Asha Sharma told staff in a town hall that the old approach had put the business into “freefall.” By the start of 2026, the numbers were already slipping: fewer players, fewer hours played, and less revenue.

If you subscribe to Xbox Game Pass, the issue seems to trace back to the 2025 Xbox Game Pass Ultimate price increase that was tied to day-one releases such as Call of Duty. Internal research reportedly showed that Call of Duty may have missed roughly $300 million in full-game sales, and subscriber growth didn’t make up the difference. Xbox Game Pass was said to be sitting at around 30 million users against a reported target of 77 million, down from a peak of 34 million in February 2024 after it reportedly lost “millions” following the price hike.

Xbox Game Pass Download

Since taking over from Phil Spencer in February 2026, Sharma has reportedly lowered prices, pulled Call of Duty from the day-one lineup, and put Xbox exclusives and Xbox Series X|S back at the center of the push. She also told staff that Xbox has to win console players back before it tries to expand further. Still, you haven’t seen the baseline behind Microsoft’s claim that first-party growth is now more than two to three times higher and that player hours have leveled off.

If you use Xbox Game Pass a lot, the lower pricing might be worth jumping on. The bigger story, though, is Xbox trying to earn back trust after layoffs, closures, studio shake-ups, and about 3,200 job cuts in fiscal 2027.

That’s the direction to expect for Xbox Game Pass and Xbox Series X|S right now, while Microsoft’s Project Helix is still reportedly moving ahead with both a traditional console and portable hardware.

Xbox Download

Author: Emmanuel Pina

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