Microsoft pauses new third-party Game Pass deals amid Xbox restructuring

Microsoft has stopped signing new third-party Game Pass deals. The move comes as Xbox undergoes a broader restructuring under recently-appointed leadership, and it’s unclear whether the company will reopen its budget for outside publishing partnerships.

The information comes from Shams Jorjani, project lead on Helldivers 2, who shared it on episode 59 of The Business of Video Games, a podcast he co-hosts. Jorjani said he picked up the signal at a recent industry event in Italy: a wave of publishers that had been deep in Game Pass negotiations — some close to finalizing — were suddenly told the deals were off.

“I don’t think this service is going away,” Jorjani said on the podcast. “The new management has repeatedly said Game Pass is a priority. My read is that things have been temporarily paused while the team figures out the new strategy. My company, Caboodle, finalized a Game Pass deal earlier this year, and I suspect we were among the last to get one signed.”

The restructuring is being led by Asha Sharma, who took over Xbox in February, replacing both Phil Spencer and Sarah Bond. One of her first major moves was cutting Game Pass subscription prices — but the trade-off was significant: new Call of Duty titles will no longer launch on Game Pass day one.

Game Pass still sits at the center of Xbox’s strategy. At the Xbox Summer Showcase in June, Microsoft emphasized that several announced titles would land on the service. And with Xbox refocusing on exclusive content, strong third-party partnerships remain valuable.

But the financial picture has changed. Microsoft spent $68.7 billion acquiring Activision Blizzard — by far the biggest deal in gaming history — and Xbox is under real pressure to show profitability. Paying premium rates to lock third-party games into Game Pass may no longer be sustainable. Shrinking the scope of acquisitions and prioritizing first-party content could make better financial sense.

Separately, Microsoft has raised prices on both the Xbox Series S and Series X, with the new pricing taking effect August 1.