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