Microsoft and Xbox are currently going through a major restructuring process led by the company’s new head Asha Sharma. Her main goal is to reduce costs and return the brand to profitability, which could lead to difficult decisions including layoffs, studio closures, potential sales, and even the cancellation of some projects.
One of Xbox’s biggest expenses remains the Game Pass subscription service, which requires a constant flow of new games. According to public information, Microsoft spends around $1 billion per year to maintain and expand the subscription platform.
According to rumors, Asha Sharma has taken these costs into consideration and has temporarily paused negotiations with developers regarding bringing their titles to Game Pass. The information was shared by marketing specialist and Caboodle Games partner Fernando Rizo during The Business of Video Game podcast, which he hosts alongside Shams Jorjani, the head of Arrowhead Game Studios, the creators of Helldivers 2.
According to Rizo, Xbox is not abandoning Game Pass additions entirely, but the process has reportedly been put on hold while the company reviews its future direction, partnership terms, pricing strategy, and budget plans.
«There were rumors behind the scenes that everyone who was negotiating Game Pass deals, well, nothing had been officially signed yet, but the agreements were already practically finalized, and suddenly all negotiations were cut off and everything fell apart», — Fernando Rizo said.
Shams Jorjani believes this is only a temporary situation and that Xbox will return to negotiations with developers once the company’s internal changes are completed. However, the pause highlights how significant the changes currently taking place inside Xbox really are.
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