Xbox Agrees Game Pass Is Too Expensive, Now What? - Next-Gen Console Watch

The latest episode of Next Console Watch discusses a leaked internal memo from the new CEO of Xbox, Asha Sharma, indicating that Game Pass has become too expensive for players. This statement aligns with many gamers' sentiments after Xbox increased Game Pass prices by 50% last year. Sharma outlines both short-term and long-term goals for Game Pass: in the short term, the price is expected to decrease to offer better value, and in the long term, it will evolve into a more flexible system. The hosts, Damon Hatfield, Ryan McAffrey, and Max Goville, express optimism about the potential price drop, noting that permanent price reductions are rare for major streaming services. They speculate on how far the price might fall, with hopes of returning to the original $20 price point, or at least a more palatable $20-$25 range. Max highlights that PlayStation Plus Premium, at $18 a month, offers a benchmark, especially considering Game Pass's inclusion of day-one new releases, which PlayStation Plus does not. Max elaborates on why Game Pass's initial value proposition, particularly the inclusion of day-one AAA games, might have been "too good to be true" and potentially unsustainable. He contrasts this with Sony's PlayStation Plus tiers, which offer older games rather than brand-new releases. He also touches upon the history of PlayStation Plus, which began as a service for online multiplayer access with occasional free games, predating the current subscription model. Ryan notes that Xbox Live Gold's "Games with Gold" might have been an even earlier iteration of game subscription services. A significant discussion point is a report suggesting that Microsoft is considering removing Call of Duty from Game Pass entirely starting in 2026. The hosts believe this move, combined with a price reduction, could be a strategy to make Game Pass more financially viable and potentially win back players. By selling Call of Duty separately, Microsoft could recoup costs and encourage more direct game purchases, while still offering a compelling Game Pass subscription at a lower price. The conversation then delves into the performance of Call of Duty, with Damon pointing out that recent titles have been outsold by other major releases, a stark contrast to its historical dominance. This raises questions about whether Microsoft acquired Activision Blizzard at the peak of Call of Duty's popularity and if the acquisition is meeting financial expectations. Max suggests that the rise of live-service games like Warzone might be contributing to a decline in annual Call of Duty sales, as players may be less inclined to purchase a new installment every year when they can play a constantly updated free-to-play title. Ryan expresses reluctance to declare Call of Duty's peak passed, given the franchise's long history of annual releases and its ability to endure. However, he acknowledges that the acquisition may not be yielding the expected financial returns, especially on the Activision side. He also notes that Activision has a history of "running franchises into the ground" with excessive iterations, and Call of Duty has been annualized for nearly 20 years. The hosts reflect on the aggressive value proposition of Game Pass, particularly the inclusion of major franchises like Call of Duty. They draw parallels to other streaming services, questioning the long-term impact of offering all theatrical releases day-one on a subscription platform. They also consider how Microsoft's acquisition of major publishers like Bethesda and Activision Blizzard complicates the economics of Game Pass, which was initially conceived when Microsoft was primarily a publisher with its own studios. The idea of a more flexible, long-term Game Pass system could involve reconciling these new economic realities. Several ideas for improving Game Pass are floated, including a voucher system similar to Nintendo's or Audible's, allowing subscribers to redeem credits for occasional day-one downloads. Another suggestion is an "indie game tier" for Game Pass, priced between $10-$15, which Max finds appealing as it aligns with his appreciation for discovering new indie titles. The discussion also briefly touches on the desire for more demos. Despite the challenges and potential adjustments, the hosts agree that Game Pass is integral to Xbox's identity and unlikely to be discontinued. Ryan states that Xbox cannot walk away from Game Pass unless it's an absolute money pit, which it likely isn't, given its longevity. He believes Game Pass will remain synonymous with Xbox, similar to how Phil Spencer's era is defined by Game Pass, the Activision Blizzard acquisition, crossplay, backward compatibility, and accessibility. Looking ahead, the upcoming Xbox showcase in June is identified as a potential venue for announcing a substantial price cut to Game Pass. The hosts also touch upon the upcoming game releases and audience polls for Next Console Watch, including a poll on which classic Zelda game fans want remade, with Ocarina of Time being the top choice. The episode concludes with a plug for IGN Live 2026, a two-day gaming and entertainment event in downtown Los Angeles.