Microsoft has reportedly hit the pause button on signing new third-party deals for Xbox Game Pass. The sudden freeze comes as the brand undergoes a massive structural reset under its new leadership, leaving several pending partnerships in limbo.
The news was brought to light by Fernando Rizo, former sales and business development officer at Raw Fury, during an episode of The Business of Video Games podcast.
"The Rug Pulled Out From Under Them"
Speaking about his recent experience at a games trade show in Italy, Rizo revealed that Microsoft abruptly halted several advanced negotiations.
"Word on the street was that loads of people who were in the frame for Game Pass deals—i.e. nothing was inked yet but the deals were in advanced discussions—everybody got the rug pulled out from under them," Rizo stated.
Rizo, whose current company Caboodle signed a Game Pass deal earlier this year, suspects they "might have been one of the last ones" to get through before the freeze. However, he doesn't believe this is the end of the subscription service. "I think they're on pause; I think they're figuring it out—that's my read anyway."
A New Era of Strategy Under Asha Sharma
The apparent freeze aligns with a massive ongoing "reset" at Xbox. New boss Asha Sharma took the reins in February, succeeding Phil Spencer and Sarah Bond, and has already begun aggressively reshaping Xbox's monetization strategy.
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Game Pass Restructuring: Sharma recently slashed Game Pass prices, dropping the Ultimate tier from £23 to £17 a month. However, this came with a major caveat: Call of Duty will no longer be included as a day-one Game Pass release.
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The Profitability Push: Following astronomical spending sprees—most notably the $68.7 billion acquisition of Activision Blizzard—Xbox is under intense pressure to return to profitability.
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Console Price Hikes: In tandem with the restructuring, Xbox recently announced substantial price increases for Xbox Series X and Series S consoles, set to take effect on August 1st.
What This Means for Game Pass
Despite the pause on third-party deals, Microsoft isn't abandoning the service. At the Xbox Summer Showcase in June, Game Pass branding was still heavily featured across upcoming titles.
As Xbox pivots its strategy back toward emphasizing platform exclusivity, the company may simply be narrowing its focus. Rather than cutting expensive checks for third-party games, Xbox might be shifting its budget entirely toward pushing its massive, newly acquired library of first-party, homemade titles.
What We Know So Far
TBA confirmed that the game is being built for TBA, with improved visuals, new mechanics, and environments designed around the storybook theme.
We wanted to create a world that feels like stepping into a storybook — full of wonder, surprises, and discovery around every corner.
— TBA
