“It is an unsustainable model.” Developers are fed up with Microsoft and point to Game Pass as a key culprit behind Xbox’s recent crisis. The founder of Arkane (Dishonored) and the publishing director at Larian Studios (Baldur’s Gate 3) have spoken out about the damage Game Pass is doing to the entire games industry.

Game Pass has become a pillar of everyday gaming for millions, delivering a massive, ever-expanding library as Xbox launches more and more first-party titles. Dubbed the “Netflix of video games,” the service gives players access to indie gems, cult classics, big blockbusters, and brand-new AAA releases from day one. Microsoft is betting everything on Game Pass, with cloud gaming looming large in the background.

But after the recent mass layoffs at Xbox, multiple game cancellations, and the abrupt shutdown of The Initiative, some of the industry’s most outspoken creatives are calling out Game Pass as a root cause of Xbox’s woes. Raphaël Colantonio, Arkane’s founder and current WolfEye Studios boss, called Game Pass “the elephant in the room”—the obvious problem nobody wants to discuss openly.

Game Pass Under Fire

In a follow-up tweet, the Dishonored creator directly blamed the subscription model for Xbox’s troubles: “I think Game Pass is an unsustainable model that’s been damaging the industry for a decade, propped up only by Microsoft’s ‘infinite money.’ But reality will catch up sooner or later.”

“I don’t think Game Pass can coexist with other business models—either it kills everything else, or it dies itself.” Colantonio expanded on this with Larian Studios’ publishing director Michael Douse, who argued that “infinite money never made sense.” Colantonio predicts reality will eventually win out: Game Pass will either dominate completely, or the whole service will collapse.

This critical view isn’t isolated. Douse argues the long-term economic sustainability of Game Pass is a fantasy, and the idea that Microsoft will subsidize it forever just doesn’t hold water. It’s important to note these opinions are rooted in concerns over “cannibalized sales”: Game Pass launches often mean blockbuster titles like DOOM: The Dark Ages or Indiana Jones and the Great Circle lose out on vital day-one revenue.

In other words, if a AAA game drops on Game Pass the same day it releases, it can drastically undercut direct sales—the most important income source for developers and studios. Of course, it’s not universal: games like Expedition 33 and Oblivion Remastered sold millions of copies anyway, but they debuted at around 50 euros—a price point that encourages direct purchase, unlike the $80 sticker on DOOM or Indiana Jones.

Back in the debate between Douse and Colantonio, Arkane’s founder erupted over the long-standing “myth” that Game Pass doesn’t affect sales: “I agree, and I’m sick of being told, ‘Don’t worry, it doesn’t affect sales,’ only for them to admit years later that yes, it does. Don’t bullshit me! Really?” he posted on X/Twitter. Larian’s exec quickly chimed in, saying he actually prefers Sony’s PS Plus strategy for its own games.

“I recognize that for smaller teams and riskier new IPs, it helps reduce risk. But I much prefer Sony’s ‘lifecycle management’ approach.” In this model, first-party games are sold traditionally, then added to PS Plus after a few months or years, boosting the player base later. “The only way Game Pass could exist without harming everyone else is if it only offered old (classic) titles.”

Source: 3djuegos