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Xbox’s 9,000 Layoffs Fuel Developer Criticism of Game Pass

Developers led by Raphael Colantonio warn that Microsoft’s subscription-first strategy jeopardizes studio viability across the industry.

Dishonored
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Overview

  • Microsoft’s recent reduction of about 9,000 roles at Xbox led to multiple studio closures and game cancellations.
  • Former Arkane Studios founder Raphael Colantonio called Game Pass an unsustainable model that threatens to outcompete other business approaches and force further closures.
  • Michael Douse of Larian Studios rejected Microsoft’s “infinite money” defense and urged adoption of Sony’s lifecycle subscription model that adds titles later.
  • Rebellion CEO Jason Kingsley said Game Pass had been a huge success for survival action game Atomfall, highlighting occasional benefits for third-party developers.
  • Despite plateauing subscriber growth and mounting industry doubts, Microsoft insists Game Pass remains the foundation of its gaming strategy.