Xbox may be slowing down its strategy of bringing third-party games to Xbox Game Pass, according to comments from industry developers, raising fresh questions about the future of Microsoft’s subscription service as the company continues restructuring its gaming business.
The claim comes from Fernando Rizo, Partner at Kaboodle Games, who said multiple developers currently negotiating Game Pass agreements were informed that discussions had suddenly stopped. Microsoft has not confirmed the reports, and Xbox has yet to publicly comment on the alleged pause.
Developers say Game Pass negotiations have stalled
Speaking on The Business of Video Games Podcast, hosted by Arrowhead Game Studios CEO Shams Jorjani, Rizo described conversations he had with fellow developers during the First Playable trade event in Italy.
“Word on the street was that loads of people who were in the frame for Game Pass deals… everybody got the rug pulled out from under them,” Rizo said.
When asked whether the agreements had been canceled entirely, he clarified that he believes they are simply on hold.
“I think they’re on pause. I think they’re figuring it out—that’s my read anyway,” Rizo explained. He also noted that Kaboodle Games completed its own Game Pass agreement earlier this year and suggested it “might have been one of the last ones that they did.”
Xbox Game Pass has long relied on both Microsoft’s first-party releases and a steady stream of third-party AAA and indie games, with many independent studios viewing the service as a way to reduce financial risk through guaranteed licensing payments.
The reported pause comes during a period of significant change for Xbox. Earlier this year, Phil Spencer retired as CEO of Microsoft Gaming, with Asha Sharma taking over leadership of the Xbox business.
According to multiple reports, Microsoft is currently restructuring its gaming division, with further layoffs and possible studio closures expected as the company reevaluates its long-term strategy. While Microsoft has not linked those changes to Game Pass, the timing has fueled speculation that the subscription service could also be undergoing internal review.
Recent business decisions have already reflected a shift in Xbox’s approach. Microsoft recently lowered Game Pass subscription prices while confirming that future Call of Duty releases will no longer launch day one on every Game Pass tier, instead arriving during the following holiday season. The company has also increased Xbox console prices amid rising hardware production costs.
No official confirmation from Xbox
At the time of writing, Microsoft has neither confirmed nor denied that third-party Game Pass negotiations have been paused.
Because Game Pass contracts are typically confidential, the full scope of any changes remains unclear. It is also unknown whether the reported pause affects all third-party publishers or only selected projects currently under negotiation.
For now, the information remains an industry report rather than an official Xbox announcement. However, if negotiations have indeed slowed, it could mark one of the most significant shifts in Game Pass’ content strategy since the subscription service launched.
