Xbox Has Reportedly Paused New Third-Party Game Pass Deals

Major changes are afoot at Xbox as the company attempts to “reset” its business over the next 100 days. Significant layoffs and studio closures are expected at Microsoft's gaming division in July. The Xbox parent could also be looking to make changes to Game Pass. Microsoft has reportedly halted deals to bring new third-party games to Xbox Game Pass deals.

The information comes from an industry insider with knowledge of deals between Xbox and third-party developers. Speaking on the latest episode of The Business of Video Games podcast, Fernando Rizo, a partner at Caboodle Games, said that Microsoft had likely paused signing off on third-party Xbox Game Pass deals, at least for the time being.

Developers Say Game Pass Deals Paused

Rizo cited conversations with several developers who were in advanced talks with the Xbox parent over Game Pass deals for their titles. While no deals had been inked, the developers “got the rug pulled out from under them,” Rizo said on the podcast.

The industry insider said that he didn't think that Microsoft had any plans to end Xbox Game Pass, but third-party deals for the subscription service could be on “pause” as the new Xbox leadership assessed the road ahead.

"We just did one (Game Pass deal) at Caboodle earlier in the year, and I get the feeling that [we] might have been one of the last ones that did,” he added.

In a response to Eurogamer, Rizo clarified that he wasn't privy to Microsoft's internal discussions, and his comments were based on conversations with developers who had been negotiating Game Pass deals with the Xbox parent.

Microsoft has not announced any major content changes for Xbox Game Pass, aside from pulling new Call of Duty games from the service. The company also slashed the price of the subscription service in April. Game Pass continues to add third-party games every month, along with new first-party titles when they launch.

In addition to putting its first-party games on Xbox Game Pass day one, Microsoft signs deals with third-party developers to bring their games to the service in order to offer members more value from their subscription. The company pays developers to put older and upcoming third-party titles on Game Pass, while the studios get financial backing and wider exposure for their games. 

Microsoft, however, is set to make major business changes at Xbox in July and could thus be putting future Game Pass deals on hold. Reports claim that the company will shut down multiple studios and lay off employees across Xbox in the coming days. Xbox revenue has continued to decline, and new CEO Asha Sharma has highlighted the need for a reset of the company's business.