Going back to 2011, he initially showed some promise as a pass protector, and in 2012 he was decent in pass blocking as the starting left tackle (while providing nothing as a run blocker). The Packers hadn't given up on him, but they decided to make him compete for a starting job last season against Don Barclay. For whatever reason, he completely fell apart. It started with the first preseason game, when he was beaten badly on a speed rush by Cardinals LB John Abraham. He barely played during the regular season, only 245 official snaps, but when he did it was bad.
Marshall Newhouse out here trying to get people killed. pic.twitter.com/5ty1xXRQKXWhile he deserves to be unemployed based on his 2013 season alone, there is some past promise to consider. Also, he's young (25) and never suffered a major injury. If the Packers decide not to re-sign him, some team will give him another chance on a one-year contract.
— Justis Mosqueda (@JuMosq) November 10, 2013
The Packers will get three lineman back from season ending injuries (Bulaga, Van Roten, Tretter) and will probably spend another year trying to figure out former 1st round pick Derek Sherrod, so depth isn't a big concern on the offensive line. The 2014 draft seems stacked at the top, as many as six tackles could be drafted in the first round, but there doesn't seem to be a lot of depth in the mid-rounds. They might want to hedge their bets and offer him a one-year contract. However, some other team might view him as a guard and give him a chance to start, which he probably won't get with the Packers.
Unless he has no other option and has to accept a one-year minimum contract from the Packers next April, I expect he'll be given another chance by some other team.