Xbox Reportedly Pauses Third-Party Game Pass Deals

Microsoft appears to have hit the brakes on signing new third-party deals for Xbox Game Pass. According to recent reports, developers previously in advanced discussions for potential Game Pass inclusions have seen their deals fall through, marking a significant change in how the subscription service is sourcing content.

The shift was highlighted by Fernando Rizo, former sales and business development officer at Raw Fury, on an episode of The Business of Video Games podcast. Rizo, speaking after a trade show in Italy, noted that "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 suggested that while the service itself isn't being abandoned, the company is currently in a state of flux. "I think they're on pause; I think they're figuring it out," Rizo said. He added that his own company, Caboodle, may have been among the last to secure a deal earlier in 2026.

A Broader Xbox Restructuring

The reported freeze coincides with a wider "reset" at Xbox following the transition to new leadership under Asha Sharma, who took over from Phil Spencer and Sarah Bond in February. This new management has already implemented significant changes, including a price reduction for the Game Pass Ultimate tier—down from £23 to £17 per month—which notably excluded day-one access to the Call of Duty franchise.

Despite the pause on third-party acquisitions, Game Pass remains a central pillar of the Xbox business model. The Xbox Summer Showcase in June continued to highlight Game Pass availability for its featured titles, and the company has recently pivoted back to emphasizing console exclusivity for its first-party projects, such as Clockwork Revolution and Gears of War: E-Day.

The Pressure for Profitability

Microsoft is currently facing significant pressure to demonstrate profitability after the $68.7bn acquisition of Activision Blizzard. Analysts suggest that the cost of securing high-profile third-party titles for the subscription service may have become unsustainable, leading the company to prioritize its own Xbox Game Studios library.

This tightening of the budget arrives alongside other major hardware changes. Xbox recently announced substantial price increases for the Xbox Series S and X consoles, which are scheduled to take effect on August 1, 2026.