Xbox Reportedly Pauses Game Pass Deals Amid Restructuring

Former business executive claims third-party Game Pass negotiations have been put on hold as Microsoft reassesses Xbox strategy.

Microsoft is reportedly pausing new third-party Game Pass deals. The move has reignited questions about the future of the subscription service as the company embarks on a broader restructuring. There are no indications that Game Pass is being phased out, but developers in continuing conversations have been advised that talks have been suspended.

The research is by Fernando Rizzo, a former Raw Fury sales and business development officer who is now a partner at the gaming commercial advice studio Kaboodle. Rizzo was speaking on an episode of The Business of Video Games podcast, where he said he discussed what he described as industry comments he heard at a recent trade event in Italy.

Several developers in advanced talks with Microsoft about bringing their games to Game Pass suddenly saw talks freeze, Rizzo said. Even if no deals had been reached, he said, the transactions were developing until developers were told that everything was on pause.

But Rizzo added that he doesn’t believe the change heralds the end of Xbox Game Pass.

Instead, he said the hiatus is more likely connected to leadership changes and an ongoing assessment of Microsoft’s gaming strategy. Kaboodle's own Game Pass deal earlier this year could end up being one of the last to be finalized before the alleged stop, he noted. 

Rizzo later doubled down on his claims when reached for more information after his initial statements. He said he doesn’t have direct knowledge of internal talks at Microsoft and doesn't have a window into the company’s decision-making process.

“I’ve spoken to a lot of developers that have Game Pass agreements in different stages of negotiation,” he added. But chats revealed that the developers were told their transactions had been put on hold, not canceled.

Again, Rizzo said he doesn't see this as an indication that Microsoft is leaving Game Pass. Instead, he feels the most likely explanation is that the new Xbox leadership wants to set its priorities and ensure everyone is on the same page before sanctioning additional spending on third-party deals. This reading is consistent with Microsoft's persistent efforts to retool its gaming division, which has seen leadership changes and ongoing tweaks to Xbox's long-term strategy.

If the claimed hiatus is true, industry watchers say it would fit with a corporation temporarily slowing large investments while wider reorganization measures are underway.

Instead of committing more resources right away, Microsoft is probably considering how Game Pass fits into its future business goals before signing additional content agreements. For years, Game Pass has been one of Xbox’s largest strategic investments, the heart of Microsoft’s subscription-focused gaming ecosystem. This suggests to many analysts that a temporary suspension in new deals is more likely than a complete closure of the service.

But the rate of new third-party Game Pass additions is unknown until Microsoft formally comments on the reports. For now, the apparent pause in talks seems more like a strategic regrouping than a wholesale rejection of Game Pass.