Xbox Game Pass Is an “Unsustainable Model” Says Arkane Founder

Over a prolonged period, there’s been much debate surrounding the long-term viability of Xbox Game Pass. This subscription model offers a substantial saving for users, yet it raises serious questions about its influence on game sales and the overall worth of video games. Microsoft has repeatedly dismissed any negative impact from the service, but it appears to be noticeably affecting first-party game sales. In light of recent job cuts at Xbox, Arkane Studios’ co-founder Raphael Colantonio openly discussed the “unsaid issue” of Xbox Game Pass.

In a tweet, Colantonio expressed his opinion that the Gamepass model, which he believes has been negatively impacting the gaming industry for over a decade and is supported by Microsoft’s seemingly endless resources, will eventually face consequences. He doubts that Gamepass can peacefully coexist with other business models, suggesting that it may either drive all competitors out of business or be forced to withdraw itself.

Third-party developers have experienced a beneficial effect from Xbox Game Pass. For instance, John “Bucky” Buckley, communications director and publishing manager at Pocketpair, stated that releasing the game Palworld on this service was “definitely worth it.” In 2022, Masayoshi Yokoyama, head of Ryu Ga Gotoku Studio, attributed the growth in popularity of the Yakuza/Like a Dragon series in the western market to subscriptions services like Xbox Game Pass. Notably, Yokoyama emphasized that the service allowed players to explore older games, sparking interest in new installments. However, it’s important to mention that the series is no longer accessible on Game Pass at this time.

Colantonio appears unfazed by the idea of older games being available on the platform, as he later mentioned in a subsequent post. Essentially, he’s suggesting that for Game Pass (GP) to function without causing harm, its back catalog is crucial. This hints at the day-one releases on the service being the primary concern. It’s clear that Xbox Game Pass has an impact on sales, as seen with some of Xbox’s initial in-house productions. For instance, Hi-Fi Rush amassed three million players, a figure usually considered impressive for a new intellectual property. However, even with this success, Microsoft opted to shut down Tango Gameworks during a round of layoffs and studio closures in 2024. Fortunately, Krafton stepped in at the last moment to save Tango Gameworks from closure.

Despite some developers expressing reservations about releasing their games on Xbox Game Pass, Microsoft appears unwilling to alter its strategy. In recent years, the company has significantly expanded Game Pass across various platforms and now views anything with access to the service as an extension of Xbox. It’s evident that Microsoft regards Game Pass as the defining aspect of the Xbox brand in the future. However, Microsoft’s first-party games have faced challenges in meeting sales targets due to day one releases, suggesting potential adjustments might be needed.

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2025-07-07 16:11