Xbox reportedly pausing new third-party Game Pass deals, developers say
Developers in line for Game Pass deals ‘got the rug pulled from under them’ it’s claimed
Xbox is slowing down the frequency of third-party Xbox Game Pass deals, according to Fernando Rizo, Partner at Kaboodle Games, citing conversations with fellow developers.
While Xbox Game Pass has largely sold itself on the inclusion of first-party Microsoft games at launch, the service has also been home to many third-party titles, both AAA and indie.
Specifically in the indie space, these Game Pass deals have often been lauded as a way to mitigate risk for developers, offering guaranteed money rather than facing market uncertainty.
Now, speaking on The Business of Video Game Podcast, hosted by Shams Jorjani, CEO of Arrowhead Game Studios, Rizo alleged that those Game Pass deals may be slowing amid an uncertain period for Microsoft’s gaming brand.
“I was at a trade show in Italy, had some nice lunches, some nice dinners with industry colleagues,” said Rizo. “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.”
When Jorjani asked whether Rizo thinks new deals are “kiboshed,” Rizo replied that they’re “on pause.”
“I think they’re figuring it out, that’s my read anyway. But yeah, for the time being, it seems like a Game Pass deal… like we just did one at Kaboodle earlier in the year, and I get the feeling that it might have been one of the last ones that they did.”
VGC has asked Xbox for comment and will update this story if we receive a response.
Xbox is in the process of ‘resetting’ its games business, according to CEO Asha Sharma. According to reports, this is likely to result in significant job losses within the next few weeks. VGC understands the cuts could include multiple studio closures.
Following a previous price increase, Microsoft recently announced it would drop the price of Game Pass across the board.
It also announced that future Call of Duty games would not be available on either service on the day of release, and would instead be added the following holiday season (up to a year after release).
Last week, Microsoft announced that Xbox consoles will soon cost between $100 and $150 more. It’s the latest tech firm to increase the price of hardware amid an industry-wide materials shortage.
