On Tuesday, Microsoft announced a reduction in subscription fees for services that grant access to a vast library of video games, following the new gaming executive’s pledge to ‘recommit to our core Xbox fans and players.’

The premium Game Pass Ultimate tier, enabling users to download games on PCs and Xbox consoles as well as stream them on mobile devices, has been reduced to $22.99 monthly from $29.99, according to a company blog post. The PC-focused Game Pass plan now costs $13.99, down from $16.49.

Upcoming releases in the ‘Call of Duty’ series will no longer be included in these subscriptions upon launch. Gamers will have the option to purchase the games at release — with the newest title priced at $69.99 — or wait until the following holiday season to access older versions in the interim.

This adjustment reflects an effort to restructure the Xbox division by Asha Sharma, a former Meta executive who took over as Microsoft’s gaming chief in February, replacing Phil Spencer.

Gaming accounted for 7% of Microsoft’s total revenue in the fourth quarter. The division’s revenue fell approximately 10% compared to the previous year, while Azure cloud services, LinkedIn, Microsoft 365 productivity tools, and Dynamics business software all saw growth of at least 10%. Hardware sales dropped 32% after Microsoft halted development of two games, ‘Everwild’ and ‘Perfect Dark.’

Revenue from Xbox content and services, which excludes hardware sales, fell short of internal projections, Microsoft’s finance chief Amy Hood stated during a conference call. She revealed an unspecified impairment charge in the gaming business, which expanded in 2023 through the $75.4 billion acquisition of ‘Call of Duty’ publisher Activision Blizzard.

Sharma informed employees in an internal memo that Game Pass had become too costly, The Verge reported earlier this month. Microsoft increased the price of Game Pass Ultimate by $10 to $29.99 per month in October. The company stated in 2024 that Game Pass had 34 million subscribers.

‘Our players span a wide range of geographies, preferences, and tastes, so while there isn’t a single model that’s best for everyone, this change responds to a lot of feedback we’ve gotten so far,’ Microsoft said in Tuesday’s blog post.

WATCH: Microsoft Gaming CEO and Xbox President Phil Spencer leaving Microsoft effective immediately

Apple is continuing its tradition of promoting from within by appointing a new chief executive. On Monday, the iPhone manufacturer revealed that CEO Tim Cook will step down from his role in September, with senior vice president of hardware engineering John Ternus named as his replacement. Cook will transition to the role of executive chairman.

In a press release announcing Ternus’s appointment, Cook praised him, stating he possesses «the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor.»

Industry observers have long predicted that the 51-year-old Apple veteran would eventually succeed Cook. Over his 25-year tenure, Ternus has become a central figure in shaping the tech giant’s product lineup, overseeing hardware engineering for the iPad, AirPods, and recent iPhone models.

Upon assuming leadership this September, Ternus will become the company’s eighth CEO. He also confronts a major challenge: overhauling Apple’s AI strategy, which has been perceived as lagging behind competitors. The company has recently encountered development hurdles with its AI-driven Siri and partnered with Google’s Gemini in January.

Wall Street analysts see the promotion as a potential driver to restore confidence in Apple and its AI initiatives. Morgan Stanley analysts noted that «promoting him to CEO clearly shows Apple’s emphasis on product at the center of the flywheel will remain.»

The Path to CEO

Ternus earned a mechanical engineering degree from the University of Pennsylvania in 1997. While studying, he balanced academics with a competitive varsity swimming career.

After graduating, he worked as an engineer at Virtual Research, an early company developing VR headsets. He joined Apple in 2001 as an engineer on the design team.

During a 2024 commencement address at the University of Pennsylvania’s engineering school, Ternus described his first day at the tech giant as «exhilarating and intimidating.»

«I wasn’t sure I belonged there,» he recalled. «The people I met were so smart and so confident, and they knew so much more than me, but I’ll always be grateful that I wasn’t afraid to ask for help when I needed it.»

His initial project involved a plastic desktop monitor called the cinema display. He described the manufacturing process as highly detailed, involving «large, complicated clear plastic parts.» Apple later shifted to aluminum materials.

«Every experience like this sharpened my ability to approach problems from different angles,» he told students in 2024. «They give me the confidence and willingness to try new things and the resolve to keep going until I find a solution.»

Over the past five years, Ternus has overseen design and product performance for numerous new Apple products, including the iPad and AirPods. He has also played a significant role in Apple’s Silicon chip program as it transitions away from Intel.

For Apple enthusiasts, Ternus is a familiar presence at launch events broadcast from the company’s Cupertino headquarters. Last year, he unveiled the company’s new iPhone Air.

Ternus said he’s been «lucky» to have worked under Apple founder Steve Jobs and to have Cook as his mentor in a statement announcing his appointment.

«I am filled with optimism about what we can achieve in the years to come, and I am so happy to know that the most talented people on earth are here at Apple, determined to be part of something bigger than any one of us,» he said.