Microsoft freezes new Xbox Game Pass deals with third‑party developers

Microsoft has halted the signing of new contracts with external game publishers for its Xbox Game Pass subscription service. Industry reports and insider comments say the move aims to curb spending after the company’s costly acquisitions of ZeniMax/Bethesda and Activision Blizzard, which together total about $69 billion. The focus is shifting toward titles from Microsoft’s own studios, especially large franchises such as Call of Duty, to improve profitability and sustainability.

Sources from the First Playable event in Florence, a podcast with Arrowhead Studios’ Shams Jorjani, and insider eXtas1stv indicate that Xbox leadership, including head of Xbox Asha Sharma, ordered a pause on new third‑party agreements and withdrew some negotiations already underway. The change is expected to reduce the flow of indie and smaller‑studio games that have previously debuted on Game Pass the day of release, potentially affecting developers who relied on the service’s guaranteed payments. Subscribers may see a narrower library as Microsoft tests a model centred on internal releases.

A leaked advertisement for the upcoming Call of Duty: Modern Warfare 4 underscored the policy shift, stating the game will not appear on Game Pass at launch, reinforcing the new approach.