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Arkane Founder’s Critique Prompts Fresh Scrutiny of Xbox Game Pass Model

Industry analysts question whether the service’s reported growth conceals first-party losses from subsidized titles

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Overview

  • Raphael Colantonio labeled Game Pass an “unsustainable model” fueled by Microsoft’s “infinite money” and warned that day-one releases harm premium game sales
  • Larian Studios’ Michael Douse and other developers voiced concerns about how long Microsoft can maintain subsidies before the model becomes unviable
  • Analyst Chris Dring highlighted that Microsoft’s profit assessments omit lost first-party revenue tied to Game Pass offerings
  • Microsoft maintains that Xbox content and services grew 8% year-over-year and PC Game Pass revenue rose 45%, with no shifts in its subscription strategy
  • Recent rounds of Xbox layoffs and studio closures have intensified industry debate over Game Pass’s impact on developer viability