Windows Central Insider
In an internal memo obtained via The Verge, Asha Sharma, Xbox’s CEO, believes reducing the price of Xbox Game Pass was the right move, stating:
“Growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year… Since our price reduction we have seen acquisitions grow and retention improve, which is a good first step.”
Interestingly, I believe this is the first time we’ve received confirmation that the Game Pass price hike did cause a slowdown in growth and a loss of subscribers, or at least the first time I’ve personally seen someone at Xbox directly acknowledge it.
However, Sharma is quick to point out that this small win is far from a complete turnaround, stressing that there is still more work to be done. She went on to say:
“We will not solve this in one moment or one launch, We will have to outwork the problem in front of us in our path to restore durable growth.”
Sharma also noted that the team still needs to “build” and “learn quickly.”
Within the memo, Sharma also discusses the rebrand from Xbox to XBOX. Despite my reluctance to capitalize XBOX every time I type it, Sharma says:
“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. It reflects a decision to be deliberate in how we show up for the players who care most about this brand.”
As a fan, it’ll be interesting to see how all of this unfolds. I’m also quite curious about what “hard choices” Sharma believes XBOX needs to make, whether that means more exclusives heading to other platforms, bigger changes to Game Pass, or something else entirely.
That’s where I’d love to hear from you. What do you think of Sharma’s comments, and what hard choices do you think XBOX will have to make going forward? Let me know in the comments, and be sure to take part in our poll!
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