Xbox CEO Asha Sharma says that recent price cuts to Game Pass are already delivering positive results.
In an internal memo obtained by The Verge, Sharma noted improvements since the reductions were implemented in April.
“Growth slowed down and subscriber loss accelerated after the pricing and SKU changes last year,” said Sharma.
“Since our price reduction we have seen acquisitions grow and retention improve, which is a good first step.”
“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 discussed the recent rebrand from Xbox to XBOX, after Microsoft Gaming reverted to the Xbox branding as part of a new mission statement.
“We are building a stronger Xbox,” said Sharma. “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.”
Xbox announced cuts to Game Pass in April, with Ultimate dropping from $29.99 to $22.99 a month, while PC reduced from $16.49 to $13.99.
The cuts did not reverse the 50% price hike last year. At that time, Game Pass on console cost $19.99 and $11.99 on PC.
Sharma said that in the long term, Xbox “will evolve Game Pass into a more flexible system, which will take time to test and learn around.”
Earlier this month, Xbox and Discord announced a partnership offering a “starter edition” of Game Pass to Nitro subscribers.
This includes access to over 50 PC and console games, including Stardew Valley, Grounded, Hades, Fallout 4, and Doom Eternal, in addition to ten hours of cloud gaming.
Eligible Game Pass subscribers will also receive Discord Nitro benefits.
