New Xbox CEO Plans Game Pass Changes With Cheaper Tier to Draw Subscribers

Asha Sharma has faced her fair share of criticism since stepping into the role of CEO of Microsoft Gaming earlier in 2026, but she has repeatedly made statements that she would try to guide the company in what she calls a “return to Xbox,” with a focus on in-house hardware. According to a new report by The Information, one of Sharma’s first moves as CEO of Microsoft Gaming will be to introduce a new lower-price tier of Game Pass in order to attract new gamers to the service and to make the service inticing to a broader range of consumers.

This comes shortly after Microsoft renamed the Windows Full Screen Experience to Xbox Mode, perhaps a rebranding in the name of unifying Microsoft’s gaming offerings—a mission that is clearly part of Microsoft’s plan, given that its next-gen console is confirmed to be a PC-console hybrid. Previously, there were rumors of an ad-supported tier for Xbox Cloud Gaming, but Microsoft also increased the price of Game Pass across the board as recently as October 2025. A Microsoft executive previously confirmed that Game Pass was profitable as a service, but that Xbox had to emphasize flexibility in its strategy, and introducing a cheaper Game Pass tier may be a viable way to draw in new Game Pass gamers, some of whom will presumably hop over to the more premium tiers, depending on Microsoft’s implementation of the new entry-level tier.