Microsoft is rethinking Xbox development, focusing on hardware and ecosystem, including a more affordable Game Pass plan to attract new users.
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Following the appointment of Ashi Sharma as head of Microsoft Gaming in early 2026, the company has begun re-evaluating its Xbox development strategy. The new leader has already stated an intention to focus on "returning to Xbox," with an emphasis on proprietary hardware and the ecosystem.
One of the first steps could be the launch of a more affordable Game Pass plan. According to sources, Microsoft is considering lowering the subscription cost to attract new users and make the service more mainstream. This approach might help expand the audience by reaching players who were previously unwilling to pay the current rates.
These changes come against a backdrop of other moves by the company, including renaming the full-screen Windows mode to Xbox Mode. This could be part of a broader strategy to unify Microsoft's gaming products into a single ecosystem, especially given plans for a next-generation hybrid console release.
Earlier, there was also discussion about launching an ad-supported version of Xbox Cloud Gaming, while in October 2025, the company actually increased the price of Game Pass. Despite this, Microsoft representatives claim the service is already profitable, but the company sees it as important to maintain flexibility in its development strategy.
The new basic tariff is expected to serve as an entry point for users who may later upgrade to more expensive subscription tiers. In this way, Microsoft aims not only to boost subscriber numbers but also to strengthen Game Pass's position in the gaming services market.