Xbox Game Pass may be on the cusp of a significant transformation, according to a report from Fortune. The service could be overhauled to allow players to choose features such as cloud gaming, multiplayer access, and add-ons for console-only games à la carte, potentially evolving into a tiered structure.
This potential shift aligns with previous rumors from September that indicated a tiered Game Pass offering, with some versions possibly including advertisements. That earlier report also suggested that Microsoft might cease releasing its first-party games on Game Pass on day one of their launch, and that a Family Plan is in development.
Microsoft has previously explored a more flexible approach to its subscription service. In April of this year, reports emerged of Microsoft preparing to launch a "pick-your-own" version of Game Pass, a concept that appears similar to the strategy described in the current Fortune report. Xbox CEO Asha Sharma has publicly stated her intention to "evolve Game Pass into a more flexible system."
Sharma has acknowledged that Game Pass was a significant investment that has not yielded the expected returns, making strategic adjustments a logical next step. Recent changes have already been implemented, including the removal of new Call of Duty titles from the subscription's offerings and price reductions. Furthermore, her team is reportedly planning to introduce charges for extended cloud gaming sessions, a move that some observers believe could lead to a less appealing and more expensive Game Pass experience.
The Fortune report also touches on broader organizational changes within Xbox. Sharma is reportedly planning further layoffs, with reductions anticipated in October and January 2027. These actions are part of a larger effort to "reset" the business, with a total of over 3,000 job cuts reportedly planned.
In related hardware news, the same report detailed Microsoft's alleged plans for a new Xbox handheld device expected in 2027 and a new console slated for release in 2028, potentially priced as high as $1,800. Additionally, the report indicates that internal discussions at Xbox have considered the possibility of the division being sold or spun off.