Arkane Studios founder suggests day-one Xbox Game Pass games contributed to loss of Microsoft jobs

Following the loss of 9,000 Microsoft jobs, with many impacting Xbox Game Studios, the blame game is in full swing. Developers who worked for studios that Microsoft shut down have been some of the most vocal critics. Founder Raphael Colantonio left Arkane Studios in 2017 before the company closed its doors in 2024. On social media, he argued that Xbox Game Pass has contributed to instability in the industry.

Colantonio now serves as President and Creative Director of the independent Wolfeye Studios. After his initial comment, he elaborated, "I think Gamepass 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 GP can co-exist with other models, they'll either kill everyone else, or give up".

In 2022, Phil Spencer revealed that Xbox Game Pass is profitable, but there have been signs of slowing subscription growth. Colantonio questions whether the model is sustainable, compared to traditional alternatives, like charging full price for games.

Despite profits, many of the studios producing Xbox Game Pass games aren't thriving. The now-defunct Arkane Studios is one example, with Redfall debuting on the service on its release date. Even Hi-Fi Rush, which was well received, didn't stop Microsoft from closing Tango Gameworks. More recent shutdowns include The Initiative before it could launch Perfect Dark on Game Pass.

Not all gamers agree with Colantonio that Game Pass was a major factor in the elimination of Microsoft jobs. Observers also blame reckless spending and poor management of hastily acquired studios. Another factor is Microsoft's increasing reliance on AI. Analysts believe the company may already be using AI tools to replace employees vital to game development.

Meanwhile, some Game Pass subscribers are cancelling memberships in protest. For some members, the collective damage to the industry may not be worth the convenience of day-one AAA titles. Other gamers implore Microsoft to be more selective in what it adds to the service. Not all Xbox Game Pass games may be the right fit for a monthly subscription. Colantonio suggested that older titles and retro favorites should remain a staple of its catalog.