Over the past week, Microsoft made significant workforce reductions throughout the organization, affecting not only Xbox studios but also leading to studio closures. In response to these cuts, Microsoft Gaming CEO Phil Spencer maintains that they are essential for ensuring a sustainable business model for Xbox. Recently, Raphael Colantonio, a co-founder of Arcane Studios, has voiced his opposition to the layoffs and contends that Microsoft’s Game Pass strategy may be unsustainable and detrimental to the long-term prosperity of the gaming industry as a whole.
Colantonio argues that the Game Pass model, which has been around for a decade, is not sustainable and has been harmful to the gaming industry, largely due to Microsoft’s substantial financial resources. However, he believes that eventually, the truth will become apparent. Colantonio doesn’t think that Game Pass can coexist with other business models in the long run. Either it will drive all other competitors out of business, or it will have to abandon its own model.
Colantonio expressed his frustration with Microsoft’s claims that Game Pass does not influence game sales. Later on, he mentioned that he could elaborate extensively on why this mathematical concept doesn’t align with the majority of publishers and developers, as well as Xbox once they cease investment.
This year, Alex Hutchinson, head of Raccoon Logic studio, expressed concerns about Game Pass affecting game values when his title Revenge of the Savage Planet launched on Xbox Game Pass day-one. In contrast, Rebellion celebrated Atomfall’s launch on Game Pass as a significant achievement for their company. Earlier this year, John Romero, co-founder of Id Software, praised Game Pass as the equivalent of Netflix for gamers. Last week, funding was withdrawn from Romero’s studio project, leading some to speculate that Microsoft may have been involved. It remains uncertain if the studio will persist in any form moving forward.
It’s looking like we might have to wait several years until Borderlands 4 becomes available on Game Pass, as per Gearbox Entertainment’s boss Randy Pitchford’s recent statement. On the other hand, Take-Two Interactive CEO Strauss Zelnick has expressed that releasing games day-one on Game Pass doesn’t align with their company strategy.
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2025-07-07 18:38