Xbox is undergoing a significant restructuring, announced by CEO Asha Sharma, which includes 3,200 layoffs, potential studio divestments, and broad changes to management and business strategies over the next 12 months. While Game Pass was only mentioned once in Sharma's memo, a source familiar with the company's plans indicates that the service, which generates $5 billion annually, will continue to receive investment but may look considerably different in the coming year.
The most immediate likely impact is to the long-standing perk of making first-party games available on day one of their release. With fewer first-party titles in development following the divestment of four studios—Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs—this benefit will be less prominent. The fate of Arkane Studios, based in France, remains unclear as Xbox explores "potential strategic options" in accordance with local labor laws.
These studios have collectively contributed notable titles to Game Pass day-one offerings, including Psychonauts 2, Deathloop, Redfall, and Senua's Saga: Hellblade 2. While Undead Labs has State of Decay 3 planned for a 2027 release and Ninja Theory has Senua's Saga: Hellblade 2 also slated for 2027, their transition to new ownership could allow for continued development. Xbox may still negotiate deals for these studios' future games to be featured on Game Pass.
This potential shift away from day-one releases aligns with recent messaging from Xbox. For instance, Call of Duty: Modern Warfare 4 will not be available on Game Pass at launch; its campaign will reportedly arrive on the service approximately one year after release. This move, coupled with speculation that Xbox might remove the day-one perk entirely, suggests a dilution of one of Game Pass's key selling points. Currently, only the most expensive tier of Game Pass offers day-one access, with lower tiers requiring a year's wait for new first-party titles. While the highest tier of Game Pass has seen a price reduction from $29.99 to $22.99, the overall effect of these changes could mean subscribers receive less value for their money.