Xbox Game Pass may have paused agreements with external studios as Microsoft moves forward with its internal restructuring
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Xbox Game Pass has reportedly suspended new agreements with external studios to incorporate games into the catalog. The decision comes amid the restructuring process that Microsoft is undergoing and changes in the service's strategy.
According to Eurogamer, several developers who were in advanced stages of negotiation received notification that the agreements were put on hold. The information comes from Fernando Rizo, former head of sales and business development at Raw Fury.
Xbox Game Pass would have suspended new agreements with external studios
What is known about the pause in Xbox Game Pass agreements
According to Fernando Rizo, during a fair in Italy, he spoke with various studios that were about to finalize contracts with Xbox Game Pass.
As he recounted on the podcast The Business of Video Games, several developers abruptly saw their negotiations interrupted. "Everyone had the rug pulled out from under them," he stated.
So far, Microsoft has not made any official statements regarding this report.
What is known about the pause of Xbox Game Pass agreements
How agreements with external studios work
The contracts for Xbox Game Pass consist of licensing and distribution agreements through which Microsoft incorporates games into the service for a specified period.
This type of agreement can include both upcoming releases and already published titles that help strengthen the catalog and attract new subscribers.
How agreements with external studios work
The restructuring that Xbox is undergoing
The pause in these agreements is known while Xbox is undergoing an internal restructuring that included studio closures, layoffs, and changes in the Game Pass strategy.
According to Xbox's head of strategy, Matthew Ball, a previous update to the service resulted in the loss of millions of subscribers. Subsequently, Xbox CEO Asha Sharma stated that the recent changes had a positive outcome, although she acknowledged that there is still work to be done.
What could happen with Xbox Game Pass
Fernando Rizo considered that the pause does not mean the end of Xbox Game Pass, but rather could respond to an internal review of the strategy.
What could happen with Xbox Game Pass
"Probably just a new CEO wanting to be firm and have everyone align with the strategy before the Game Pass team starts writing checks again," he asserted.
Meanwhile, Microsoft continues to present new games for the service, although it is still undergoing its internal reorganization process.
