Microsoft Xbox has paused signing new third-party game deals for Xbox Game Pass amid a strategic business restructuring led by new Xbox head Asha Sharma, who took over in February 2026 [1, 2, 3, 4, 5]. This pause affects deals that were in advanced discussions and includes cancellation of negotiations with independent and third-party studios for new Game Pass titles [1, 2, 3, 4, 5].
The restructuring aims to control rising operating costs and reassess investment returns on Game Pass content following costly studio acquisitions, including Microsoft's $68.7 billion purchase of Activision Blizzard [1, 2, 4]. Despite these changes, Game Pass remains a core part of Xbox's strategy, though recent pricing shifts and dropping Call of Duty from day-one Game Pass access show a shift in its business model [1, 3, 6].
Earlier this year, Microsoft cut the price of Xbox Game Pass Ultimate from £23 to £17 per month but excluded Call of Duty from launch-day availability on the subscription service [1, 6]. Microsoft confirmed in April 2026 that new Call of Duty titles, starting with Modern Warfare 4, would only be available on Game Pass about a year after release, typically during the holiday season [6].
Indie developers have been hit hard by the pause in Game Pass deal signings because many relied on upfront payments from such deals to offset financial risks during development [2, 4, 5]. "Word on the street was that loads of people who were in the frame for Game Pass deals—i.e., nothing was inked yet, but the deals were in advanced discussions—everybody got the rug pulled out from under them," said industry observer Fernando Rizo [3].
Shams Jorjani, another industry insider, described the pause as temporary, noting, "I don't think Game Pass is over given that the new incoming leadership have talked a lot about Game Pass. I think they're on pause; I think they're figuring it out—that's my read anyway" [1].
Alongside Game Pass changes, Xbox Series S and Series X console prices are set to increase starting August 1, 2026 [1].
