Microsoft's Xbox division has reportedly stopped signing new third-party deals for its Game Pass subscription service. This decision appears to be linked to ongoing restructuring within the Xbox division, although it remains unclear if negotiations will resume.
The information originates from Shams Jorjani, the boss of Helldivers 2 developer Arrowhead Game Studios, who shared his observations from a recent trade show. Jorjani stated that developers who were in advanced discussions for Game Pass deals had their opportunities rescinded.
While new leadership, including Xbox's new head Asha Sharma who took over in February, has emphasized the importance of Game Pass, Jorjani believes the current situation is a pause rather than an end to the program. He speculated that the new leadership is currently evaluating the service's strategy.
"I don't think Game Pass is over given that the new incoming leadership have talked a lot about Game Pass," Jorjani said. "I think they're on pause; I think they're figuring it out - that's my read anyway. For the time being, it seems like Game Pass deals: we just did one at Caboodle earlier in the year and I get the feeling that [we] might have been one of the last ones that did."
This reported halt in third-party acquisitions comes as Xbox undergoes significant changes. Under Sharma's leadership, the service has seen a notable price reduction for its Game Pass Ultimate tier, a change accompanied by the removal of Call of Duty titles from day-one access. Xbox's recent Summer Showcase also consistently highlighted Game Pass availability for the games presented, indicating its continued relevance.
However, Xbox faces considerable financial pressure following substantial investments in studio acquisitions, most notably Activision Blizzard for $68.7 billion. The cost of securing third-party titles for Game Pass may be a factor in the decision, potentially leading Microsoft to prioritize its first-party content and reduce overall expenditure on external games. This strategic shift may also be influenced by the recent price increases on Xbox Series S/X consoles, which are set to take effect from August 1st.