The Downside Of Game Pass, According To A Former Xbox Boss

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Previously employed executive at Bethesda, Pete Hines, has sparked fresh debates regarding subscription services such as Xbox Game Pass and their role within the gaming industry. Notably, additional voices from experienced figures in the field have joined this discourse, including former executives from Sony and even Microsoft’s own Xbox division.

Shannon Loftis, a previous executive at Xbox Games Studios, concurred with Hines’ perspective on subscription services. According to her, the Game Pass service potentially impacts retail sales earnings. (Source: TweakTown)

In simpler terms, Game Pass has successfully rescued some games that might have otherwise been lost or overlooked, according to Loftis. He specifically mentioned Human Fall Flat as an example. However, it’s important to note that most of the games adopted on Game Pass come at a cost of sales revenue from traditional retail outlets. This is only avoided if the game is designed from its inception to generate income after its release.

Microsoft’s own CFO confirmed Loftis’ statement about Game Pass potentially impacting retail revenue. In fact, it’s suggested that popular titles like Starfield and Indiana Jones and the Great Circle may have missed out on significant sales due to Game Pass. However, it’s important to note that Microsoft presents Game Pass as an alternative method for playing Xbox games, not the sole option.

2024 saw Call of Duty: Black Ops 6, one of the largest Game Pass launches to date, claim the top spot as the best-selling game in the U.S. This success was achieved even though it was simultaneously released with the subscription service. However, this doesn’t indicate that its retail sales remained unaffected by the availability on Game Pass.

In a different turn of events, it’s worth noting that Shawn Layden, a former executive at PlayStation, agrees with Hines’ perspective on services like Game Pass. Instead of focusing on whether Game Pass generates profit for the platform, Layden suggests that one should consider if this service is beneficial and advantageous to game developers.

In a recent update, Microsoft announced that its Game Pass subscription service surpassed $5 billion in yearly earnings for the first time since launching. It remains undetermined, though, if Game Pass brings a profit to Microsoft.

In a recent interview, Hines (previously from Bethesda, now acquired by Microsoft), expressed his apprehensions regarding the growing trend of subscription-based services in the gaming industry.

Subscriptions seem to be replacing traditional purchases these days, don’t they? Nowadays, it seems like every product requires a subscription instead. If you don’t manage to harmonize the requirements of the service providers and the people running the service with those who create the content – without which your subscription holds no value – then you have a significant issue,” he pointed out.

In simpler terms, Hines emphasized that a business offering a gaming subscription should acknowledge, fairly reward, and appreciate the effort involved in creating the content, focusing on producing not just games, but high-quality products.

In simpler terms, the challenges or difficulties that Hines described within the given scenario are causing significant harm to numerous individuals, particularly those involved in game development, according to him.

He stated, “Since their contributions aren’t being appropriately recognized or compensated within the system they are operating in.

Recently, I’ve noticed some major shake-ups at Microsoft. They’ve been letting go of a lot of people, scrapping games, and even shutting down a few studios. It’s a bit unsettling as a gamer who’s been looking forward to some of those titles.

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2025-09-08 18:10