Xbox pauses third-party Game Pass deals during restructuring

Microsoft appears to have paused negotiations for new third-party content on Xbox Game Pass. The move comes as the division undergoes leadership changes and cost adjustments.

Former Raw Fury executive Fernando Rizo reported that multiple developers in advanced talks for Game Pass deals were told the agreements were on hold. Rizo, now a partner at Caboodle, shared the information on the podcast The Business of Video Games after hearing the accounts at a recent trade show in Italy.

Xbox is currently being reset under new boss Asha Sharma, who assumed leadership in February. Sharma has already reduced the price of the Ultimate tier from £23 to £17 per month while removing day-one access to Call of Duty.

Rizo noted that the pause likely reflects internal alignment rather than a permanent shift. He said recent signings handled by his firm may have been among the last completed before the change.

The company also raised prices for Xbox Series S and X consoles, with the increases taking effect on 1 August.

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Split-image illustration depicting Xbox Game Pass price reductions alongside delayed Call of Duty day-one access.
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Microsoft cuts Game Pass prices in affordability push, ends day-one Call of Duty access

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Microsoft has slashed prices for Xbox Game Pass Ultimate and PC Game Pass effective immediately, responding to player complaints that the service had grown too expensive under new CEO Asha Sharma's affordability push. However, new Call of Duty titles will no longer arrive on launch day, joining instead about a year later during the following holiday season.

Xbox leader Asha Sharma told staff in a memo that the company must make hard choices to build a stronger XBOX. The update follows a recent Game Pass price reduction that has improved subscriber growth.

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New Microsoft Gaming CEO Asha Sharma informed staff in an internal memo that Game Pass has grown too expensive for players and requires changes. She described the service as central to Xbox gaming value but stressed the need for a better value equation in the short term and a more flexible system long term.

Microsoft is weighing the removal of Call of Duty titles from day-one availability on Xbox Game Pass. Windows Central journalist Jez Corden stated that Xbox executives see cracks in the current strategy due to the blockbuster franchise's impact on subscription revenue. The potential change comes amid recent price hikes for the service.

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Xbox CEO Asha Sharma has suggested the company will introduce new approaches to console sales later this year amid rising hardware costs. In a Fortune interview, she pointed to challenges with RAM and storage prices that are now 2.75 times higher than at launch. Sharma said the firm is exploring options beyond price increases to keep consoles accessible.

Xbox CEO Asha Sharma and Xbox Game Studios Head Matt Booty emailed employees on June 10 with a blunt message that current operations cannot continue. The note outlined five harsh realities facing the division, including low profits and rising costs. Bloomberg separately reported that major layoffs are planned for next month.

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Microsoft is reportedly in talks to close several Xbox game studios as part of a broader restructuring. Negotiations involve studios behind well-known titles including Psychonauts, South of Midnight, and Hellblade.

 

 

 

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