Microsoft has reportedly bailed out on many future third-party Xbox Game Pass deals, Putting the program on “pause.”
During the latest episode of The Business of Video Games Podcast (via IdleSloth84_ on Twitter/X), co-host Fernando Rizo, former Chief Sales and Business Development Officer at Raw Fury and now a Partner at Kaboodle Games, mentioned that revealed that a lot of third-party developers and publishers who were in advanced negotiations for Xbox Game Pass deals with Microsoft have had “the rug pulled out from under them.”
Speaking alongside co-host Shams Jorjani, CEO of Arrowhead Game Studios, Rizo explained that he had recently attended the First Playable industry event in Italy, where the topic became a recurring conversation among developers. “I was at a very nice industry trade show in Italy, First Playable,” he said. “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.”
When Jorjani asked what this ultimately means, Rizo clarified that he doesn’t believe Xbox Game Pass itself is in danger, rather that Microsoft appears to be reevaluating the program. “I don’t think Game Pass is over,” he said. “I think they’re on pause. I think they are figuring it out. That’s my read anyway.” He added that Caboodle Games completed a Game Pass agreement earlier this year, but he now gets the impression it may have been among the last third-party deals finalized before this apparent halt. “For the time being it seems like Game Pass deals… we just did one at Caboodle [Games] earlier in the year. I got the feeling it might be one of the last ones they did.”
Rizo’s information suggests that Microsoft is reviewing the financial viability of future Xbox Game Pass partnerships in an effort to adapt its business strategy. If the company resumes signing third-party deals, it may become much more selective, potentially prioritizing higher-profile releases over smaller independent titles.
