Xbox appears to be taking a step back with Game Pass, at least for now. Reports suggest that Microsoft has paused negotiations for new third-party games joining the subscription service while it reviews its wider business strategy.
The company has not officially confirmed the reports, but the information comes from The Business of Video Games Podcast (Episode 59), co-hosted by Arrowhead Game Studios CEO Shams Jorjani. During the episode, Fernando Rizo of Caboodle Games, shared what he had heard while attending the First Playable trade show in Florence, Italy. According to Rizo, several developers told him that their Game Pass negotiations had suddenly been put on hold.

He said, “I was at a trade show in Italy, had some nice lunches, some nice dinners with industry colleagues. Word on the street was that loads of people who were in the frame for Game Pass deals, i.e, you know, nothing was inked yet, but the deals were in advanced discussions… Everybody got the rug pulled out from under them.”
Rizo said the talks with Xbox were already at an advanced stage. Nothing had been signed yet, but according to him, that was the only step left. When asked whether the agreements had been canceled, he explained that they had instead been put “on pause,” although he did not provide further details. He also believes the agreement his own company signed earlier this year may have been one of the last completed before the reported pause.
As mentioned earlier, Microsoft has not officially confirmed these reports, so they should still be taken with a pinch of salt. However, if they turn out to be true, it would be bad news for many developers who depend on Game Pass for financial support, help during development, and reaching more players. As more information becomes available, we’ll be sure to keep you updated here at GameObserver.