Xbox has reportedly ‘paused’ third-party Game Pass deals

Since taking over as Xbox CEO, Asha Sharma has begun a broad reset of the business, a shift that has included lowering Game Pass prices, introducing new ‘pay later’ financing options for hardware and cutting operating costs. Now, it appears investment in securing third‑party Game Pass partnerships may also be slowing.

According to Fernando Rizo of Kaboodle Games, Xbox has may have paused new third‑party Game Pass deals. Speaking on The Business of Video Games Podcast, hosted by Arrowhead CEO Shams Jorjani, Rizo said he has heard from multiple developers that ongoing negotiations were abruptly halted.

“I was at a trade show in Italy, had some nice lunches, some nice dinners with industry colleagues,” Rizo said. “Word on the street was that loads of people who were in the frame for Game Pass deals… nothing was inked yet, but the deals were in advanced discussions… Everybody got the rug pulled out from under them.”

Rizo came away from those conversations with the impression that new third-party game deals for Game Pass are “on pause”. Press outlets like VGC have contacted Microsoft for comment but so far, no statements have been shared.

Game Pass has historically relied on a mix of first‑party Microsoft releases and a steady flow of third‑party titles, including many indie games. For smaller studios, these deals have often been seen as a way to mitigate financial risk, offering guaranteed revenue rather than relying solely on market performance.

Rizo added that Kaboodle Games recently secured a Game Pass deal earlier this year, but he suspects it “might have been one of the last ones that they did” before the pause.

KitGuru Says: With Microsoft less willing to fund ‘risky' projects from its own studios nowadays, third-party Game Pass deals would be the primary way to ensure variety for the service moving forward. Even if there is a pause right now, I don't expect Microsoft to drop third-party Game Pass content deals entirely. 

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