Xbox has abruptly halted all third-party Game Pass deals, according to former Modern Wolf CEO Fernando Rizo on The Business of Video Games podcast. Industry sources revealed that studios in advanced discussions suddenly lost their opportunities, with Rizo suggesting his own Caboodle deal earlier this year may have been among the final ones completed.

This freeze comes as Microsoft restructures its gaming division, with layoffs and potential studio closures looming. The timing suggests Xbox is recalibrating its strategy under new leadership, prioritizing internal resources over external partnerships to control costs and streamline operations.

Rumors point to a potential Game Pass tier featuring exclusively in-house Xbox Studios titles. New CEO Asha Sharma has emphasized expanding into price-sensitive markets, which aligns with recent moves like removing day-one Call of Duty access while reducing subscription prices for both PC and console tiers.

The suspension signals a fundamental shift in how Microsoft approaches its subscription service. While this could pave the way for merging PC and Xbox Game Pass offerings, it leaves independent developers scrambling and raises questions about the service's long-term commitment to third-party content diversity.