Rafael Colantonio, founder of Arkane Studios, known for games like Dishonored and Prey, has spoken out against the Game Pass business model. In a series of posts on X, Colantonio called the subscription an "unsustainable model" and harmful to the industry.
"In my opinion, Game Pass is an unsustainable model that has been increasingly damaging the industry for decades, subsidized by MS's (Microsoft's) "endless money," but at some point reality has to hit. I don't think GP can coexist with other models, they will either kill everyone else or give up," Colantonio writes.
Later, Larian publisher Michael Dawes joined the conversation, noting that his biggest concern is the fear that Microsoft will run out of money at some point. He notes this as the main reason why many people don't switch to the Game Pass business model.
Colantonio also noted that while Microsoft typically tries to reassure developers that their games' release day on Game Pass won't have a negative impact on sales, the reality is different. He also says the company itself is starting to acknowledge that the subscription does have an impact on its overall sales. According to research, some games lose up to 80% of their sales.
Both Colantonio and Dawes agree that Game Pass could be useful for newer, smaller developers who are developing riskier games that might not find their players if they weren't available through a subscription. They also agree that the best option for such a business model would be to add older games, like PlayStation does, rather than immediately launching big new projects on day one, like Microsoft.
Colantonio also notes that Game Pass is still unprofitable for Microsoft and is in the early stages of user acquisition. He says the company hopes that at some point there will be enough people using the subscription to cover all costs, including the purchase of other studios, such as Activision Blizzard for $69 billion, which is not helping Game Pass' growth much.