Raphael Colantonio, the founder of Arkane Studios and current head of Wolfeye Studios, has voiced strong criticisms of Xbox Game Pass, deeming it an “unsustainable” model amid recent layoffs within the Xbox division. Colantonio, whose work includes notable titles like Dishonored and Prey, described Game Pass as the “elephant in the room,” asserting that it adversely affects sales of Xbox games.
Concerns Over Game Pass Model
In a post on X (formerly Twitter) on Saturday, Colantonio questioned why the industry’s issues with Game Pass are not being discussed. The statement comes in light of significant job cuts at Xbox, which led to studio closures and project cancellations.
Why is no-one talking about the elephant in the room? Cough cough (Gamepass)
— Raphael Colantonio (@rafcolantonio) July 5, 2025
Colantonio elaborated on his concerns, stating, “Game Pass is an unsustainable model that has been increasingly damaging the industry for a decade, subsidized by MS’s ‘infinite money,’ but at some point reality has to hit. I don’t think Game Pass can coexist with other models; it’ll either overshadow everything else or it will collapse.”
He criticized the economic framework of Game Pass, highlighting how the day-one availability of first-party titles affects overall sales. Microsoft has adopted this strategy for all its first-party games, allowing subscribers to play new releases at no extra charge.
Debate Over Game Pass Value
Though some view Game Pass as beneficial for gamers, it has faced backlash from various industry stakeholders. While the service can enhance visibility for indie games, it may also negatively influence sales figures for new releases. Jim Ryan, the former head of PlayStation, previously pointed out during a US FTC trial concerning Microsoft’s acquisition of Activision that the majority of video game publishers believe Xbox Game Pass is “value destructive.”
Despite the criticisms, some titles have achieved notable success even with simultaneous Game Pass launches. For instance, the turn-based RPG Clair Obscur: Expedition 33 from French developer Sandfall Interactive sold over 3.3 million copies within a month of its April 24 release, while also being part of the subscription service.
Additionally, Rebellion Developments’ CEO remarked that launching their action-survival game, Atomfall, on Game Pass led to significant success, as it attracted over two million players since its March release.
Recent Xbox Layoffs
Last week, Microsoft announced it would be laying off approximately four percent of its workforce, translating to more than 9,000 employees. The cuts have hit various parts of the Xbox division particularly hard, including teams responsible for popular franchises like Candy Crush and Call of Duty, along with major studios like Halo and Forza Motorsport.
These layoffs have also led to the cancellation of several projects, including the much-anticipated Perfect Dark reboot and the closure of The Initiative. Rare’s Everwild has been scrapped as well, alongside multiple unannounced games.
The Seattle Times reported that these layoffs reflect Microsoft’s strategy to trim costs in light of rising expenditures in artificial intelligence, with plans to invest over $80 billion (approximately Rs. 6,87,456 crore) in AI infrastructure in the upcoming year.
