Microsoft

In the Wake of Xbox Layoffs, Founder of Dishonored and Prey Dev Arkane Slams Game Pass: ‘Why Is No-One Talking About the Elephant in the Room?’

Hot on the heels of the layoffs that have swept through Xbox, the founder of Microsoft-owned Arkane Studios has hit out at Game Pass, whose subscription model he called “unsustainable.” Raphael Colantonio, who founded the Dishonored and Prey developer and served as its president before leaving in 2017 to start Weird West maker WolfEye Studios

Hot on the heels of the layoffs that have swept through Xbox, the founder of Microsoft-owned Arkane Studios has hit out at Game Pass, whose subscription model he called “unsustainable.”

Raphael Colantonio, who founded the Dishonored and Prey developer and served as its president before leaving in 2017 to start Weird West maker WolfEye Studios, took to social media to ask: “Why is no-one talking about the elephant in the room? Cough cough (Gamepass).”

When asked to expand on his thoughts on Game Pass, which Weird West launched straight into as a day one title in March 2022, Colantonio said: “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.”

Colantonio’s comment sparked a vociferous debate about the pros and cons of Game Pass in industry terms as well as for the customer. Microsoft’s subscription service has been called many things over the years: the death of the video game industry; the savior of smaller developers who benefit greatly from payments made by Microsoft to secure their games; and everything in between. During the great Xbox FTC trial to decide the fate of Microsoft’s $69 billion aquisition of Call of Duty maker Activision Blizzard, then PlayStation boss Jim Ryan claimed that he had talked to “all the publishers” and that, unanimously, they all hated Game Pass “because it is value destructive.” He also said Microsoft “appears to be losing a lot of money on it.”

Back in 2021, Xbox boss Phil Spencer countered Game Pass doomsayers, saying: “I know there’s a lot of people that like to write [that] we’re burning cash right now for some future pot of gold at the end. No. Game Pass is very, very sustainable right now as it sits. And it continues to grow.”

That was four years ago. What about now, in the wake of cuts that have seen Rare’s Everwild, the Perfect Dark reboot, and an unannounced MMO in the works at developer behind The Elder Scrolls Online all canceled?

Colantonio’s comments were backed by a number of industry peers, including the former VP of biz dev at Epic Games. Michael Douse, publishing director at Baldur’s Gate 3 developer Larian, said that the biggest concern right now revolves around what happens when all that money runs out. This, Douse added, is “one of the main economic reasons people I know haven’t shifted to its business model. The infinite money thing never made any sense.”

(It’s worth noting that Baldur’s Gate 3 has so far not launched in Game Pass or PlayStation Plus.)

Colantonio then ridiculed Microsoft’s insistence that launching games into Game Pass did not impact sales, only to later admit the contrary.

Douse responded to to say he prefers the Sony way of doing things. Sony’s PlayStation Plus policy is to keep first-party games off the subscription service at launch, only adding them some time later. That’s why you won’t see this year’s Sony’s Ghost of Yotei launch straight into PS Plus, but you will see Call of Duty: Black Ops 7 as a day one Game Pass launch.

“The economics never made sense, but at the same

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Microsoft

Xbox “has work to do”, but is “recommitting” to core fans following hardware revenue drop of 33% year-on-year

If you click on a link and make a purchase we may receive a small commission. Read our editorial policy. Home News Xbox “has work to do”, but is “recommitting” to core fans following hardware revenue drop of 33% year-on-year Player growth has “not yet met our ambition”. Image credit: Xbox News by Victoria Phillips

If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Xbox “has work to do”, but is “recommitting” to core fans following hardware revenue drop of 33% year-on-year

Player growth has “not yet met our ambition”.


green Xbox logo on a dark background
Image credit: Xbox

Earlier today, Microsoft shared its earnings results Q3 FY2026, covering for the period between 1st January and 31st March. Microsoft’s revenue is up 18 percent, at $82.9bn, though gaming revenue fell seven percent. Xbox content and services also saw a drop of five percent year on year. Microsoft attributed this to “a prior year comparable that benefited from strong first-party performance”.

Meanwhile, Xbox hardware revenue dropped 33 percent. This follows a price rise for Xbox Series X/S consoles in the US towards the end of last year, the consoles’ second in six months. In November, Microsoft said this price increase was due to “changes in the macroeconomic environment”. Despite this, Microsoft CEO Satya Nadella said the company had “set new records for monthly Xbox active users in the quarter, as well as game streaming hours”.

A little teaser for Xbox’s Project Helix.Watch on YouTube

Writing on social media platform X, Microsoft’s newly-appointed Xbox boss Asha Sharma said “while we have made progress expanding the business and our margins

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Microsoft

IREN Doubles Down on AI Cloud Pivot as Bernstein Cuts Target but Keeps Top Pick Rating

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Five Big Tech Earnings Could Decide Bitcoin’s Next Move This Week

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Five of the largest US technology companies report quarterly results this week, and the outcomes could push Bitcoin (BTC) and broader crypto markets in either direction, given the unusually tight link between digital assets and Nasdaq equities. Microsoft, Alphabet, Meta, and Amazon release Q1 figures after the closing bell on Wednesday…
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Microsoft

Microsoft-Backed Space and Time Just Launched a No-Code App Builder

Microsoft is not betting on crypto lightly. M12, Microsoft’s venture fund, led a $20 million investment in Space and Time back in 2022. Now that bet is paying off in a direction nobody saw coming. Space and Time just launched Dreamspace, a no-code AI app builder that lets anyone generate and deploy a fully functional

Microsoft is not betting on crypto lightly. M12, Microsoft’s venture fund, led a $20 million investment in Space and Time back in 2022. Now that bet is paying off in a direction nobody saw coming. Space and Time just launched Dreamspace, a no-code AI app builder that lets anyone generate and deploy a fully functional […]
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