XBOX Is Apparently Slowing Down With New Third-Party Game Pass Deals

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Not long after promising a reset for XBOX, Microsoft is reportedly looking to reduce the pace of new third-party Xbox Game Pass agreements. The new report comes via comments from Fernando Rizo, partner at Kaboodle Games, who says multiple developers have seen planned deals unexpectedly stall.

Speaking on The Business of Video Game Podcast, hosted by Arrowhead Game Studios CEO Shams Jorjani, Rizo said conversations with industry colleagues suggest several developers who were in advanced discussions with Microsoft about joining Game Pass have had those negotiations put on hold.

According to Rizo, many studios believed they were close to finalizing agreements before discussions suddenly stopped. When asked whether Microsoft had canceled the deals outright, he clarified that his impression is they have instead been paused while the company reassesses its strategy.

“I think they’re figuring it out,” Rizo said during the podcast, adding that his own studio recently secured a Game Pass agreement and that it may have been among the last completed under the current approach.

Third-party Game Pass deals have long been viewed as particularly valuable for independent developers. By providing guaranteed funding upfront, the service has helped studios reduce financial risk and reach a wider audience without relying solely on launch sales. 

Rizo did not provide an official reason for the reported slowdown, and Microsoft has not commented publicly on the claims. As a result, it remains unclear whether the reported pause reflects a temporary review of Game Pass spending, a broader shift in Microsoft’s gaming strategy, or isolated cases affecting only certain publishing agreements.