Xbox reportedly stops signing third-party Game Pass deals

Microsoft is reportedly pausing the signing of new third-party Game Pass deals, according to Fernando Rizo, a former Raw Fury sales officer and veteran gaming industry executive who co-hosts the podcast “The Business of Video Games.” Speaking at a recent trade show in Italy, Rizo claimed that developers who were in advanced negotiations for Game Pass deals have had agreements “put on pause” while Xbox restructures its gaming business.

The reported pause comes amid significant upheaval at Xbox, including recent layoffs, criticism over Game Pass price increases, and the appointment of new CEO Asha Sharma earlier this year. Sharma has already begun restructuring the subscription service and reportedly made it more affordable following the controversial $30/month price point introduced previously—a 50% increase that damaged the service’s subscriber base.

According to Rizo’s account, developers in the frame for deals “got the rug pulled out from under them,” suggesting the halt affects existing negotiations rather than representing blanket cancellations. Sources indicate Xbox is using this period to determine its broader gaming strategy while the company reorganizes.

However, the claims remain unconfirmed and disputed. Some observers have expressed skepticism about the extent and permanence of the pause, noting that Xbox has not publicly confirmed freezing third-party funding entirely. The situation highlights ongoing uncertainty around Xbox’s Game Pass strategy as Microsoft navigates subscription service profitability, recent reputational damage, and competition in the gaming market.