Former Xbox Executive Confirms Game Pass Creates Tension With Developers

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For gamers, Xbox Game Pass can be a fantastic value, but it’s a contentious service among those creating the games. In 2017, Microsoft launched Xbox Game Pass, a subscription service offering access to a selection of titles from their digital library without any additional costs. This was an attractive offer, enabling players to explore games they might not have considered otherwise and even save money on ones they wouldn’t have bought. Additionally, it provided an affordable means for gamers to find cooperative games, saving friends from the expense of purchasing a game they may not enjoy collectively. The service improved further in 2018 when Microsoft started adding first-party games at launch, which was well received by subscribers.

Many people appreciate the value of such a service, especially since it could help save hundreds or even thousands of dollars annually on game purchases. However, some question its practicality due to generating only around $20 per user each month. It’s puzzling how this model can sustain blockbuster games with budgets in the millions, let alone make them profitable. The financial aspects are intriguing; it might be feasible for older games that have largely sold their copies, but new releases present a more challenging scenario. This debate has been ongoing, and while Xbox asserts that Xbox Game Pass is profitable, internal disagreements seem to persist.

Xbox Game Pass Is a Source of Tension With Developers

According to Pete Hines, Bethesda’s former Senior Vice President of Marketing and Communications, while Game Pass has successfully attracted numerous players to various games, it doesn’t prevent the studios responsible for those games from facing closure.

In a recent interview with DBLTAP, Hines shared that he no longer works for any of these companies and thus, some of the knowledge he had while part of the industry might not be current. However, due to his continued involvement, he acknowledged some decisions he considered shortsighted several years ago appear to be proving true today. He went on to humorously note that subscriptions seem to have taken the place of the infamous “four letter words,” as it now seems impossible to purchase a product without a subscription.

If you’re discussing a content-based subscription service, it’s crucial to find a balance between meeting the needs of the service providers, those managing the service, and the content creators. Neglecting this balance can lead to significant issues. It’s essential to appreciate, compensate, and recognize the efforts involved in creating that content, not just treating it as a game but as a valuable product. This tension is causing harm to many people, including the content creators themselves, who are often working within an environment that undervalues and undercompensates their contributions.

The sentiments expressed by the former Xbox Game Studios Vice President, Shannon Loftis, on LinkedIn were similar. She discussed how while some games prospered on Game Pass, they inadvertently caused issues and tension for other games – notably those without in-game purchases or substantial post-release monetization plans.

In simpler terms, Loftis, who has been developing games for Xbox as a first-party developer for a long time, agrees with Pete. While Microsoft’s Game Pass (GP) can save some games from failing (like Human Fall Flat), most of the game adoption on Game Pass often results in a loss of retail revenue, unless the game is specifically designed to generate additional income after its release. Loftis could elaborate more (and might do so in the future) about the strange conflicts this situation creates within the industry.

It appears there were doubts about the sustainability of Xbox Game Pass within Xbox itself, and some of these worries might not have been fully addressed, leading to issues. Regardless, Xbox continues to stand behind the service, aiming to make it available across various devices. The ultimate vision is for Xbox to extend beyond a console, becoming a service that enables gaming on diverse platforms such as smart TVs, computers, and even through cloud services in vehicles like those produced by LG, opening up exciting possibilities for travelers spending long hours on the road with their families.

Some critics of Xbox Game Pass argue that it has influenced players to delay purchasing games in favor of waiting for their release on the service. Although no definitive evidence exists, there’s likely a group of individuals who prefer this approach, which can negatively impact games that don’t make it onto the platform.

What do you think of Xbox Game Pass? Let me know in the comments.

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2025-09-09 19:41