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 Boss Asha Sharma Announces Leadership Reshuffle in Bid to ‘Move Faster,’ Bringing in Former Microsoft AI Colleagues

UPDATE: Xbox boss Asha Sharma has confirmed that Microsoft has stopped development of Copilot on console. In a tweet, Sharma said Microsoft will retire features “that don’t align with where we’re headed.” Gaming Copilot, which was in beta, was designed as “your personal gaming sidekick with Xbox.” The idea was that players could ask for

UPDATE: Xbox boss Asha Sharma has confirmed that Microsoft has stopped development of Copilot on console.

In a tweet, Sharma said Microsoft will retire features “that don’t align with where we’re headed.”

Gaming Copilot, which was in beta, was designed as “your personal gaming sidekick with Xbox.” The idea was that players could ask for help anytime or anywhere while they were playing a game. “With in-game assistance, get unstuck, pass roadblocks, and level-up your gameplay,” Microsoft said. “The guide you want, when you want it. Brainstorm strategies and get tips or insights with personalized coaching.”

It would also provide users with gaming recommendations. Gaming Copilot is currently available in the Xbox mobile app, and on Game Bar for Windows 11, and on the ROG Xbox Ally handhelds.

“Xbox needs to move faster, deepen our connection with the community, and address friction for both players and developers,” Sharma said. “Today, we promoted leaders who helped build Xbox, while also bringing in new voices to help push us forward. This balance is important as we get the business back on track. As part of this shift, you’ll see us begin to retire features that don’t align with where we’re headed. We will begin winding down Copilot on mobile and will stop development of Copilot on console.”

ORIGINAL STORY: Newly-installed Xbox boss Asha Sharma has announced a major reshuffle of the company’s platform technology teams, as Microsoft’s gaming division seeks to rebuild its position and release Project Helix, its next-generation console.

In an internal memo shared with Xbox staff today, seen by IGN, Sharma stated that leadership change was needed to “begin building the capacity we need” to evolve the Xbox brand and “how we work.”

As part of the changes, Sharma is bringing four former colleagues from Microsoft’s CoreAI division, where she previously served, over to Xbox. IGN understands that Xbox’s previous stance on AI remains unchanged.

The 100 Best Xbox Games of All Time

“Right now, it is too hard to ship impact quickly,” Sharma wrote, adding: “we spend too much time inward instead of with the community; and we lack the capability we need in some key areas.”

For Xbox fans, likely the most widely-known name among the list of today’s changes is that of Jason Ronald, the Microsoft veteran with more than 20 years of experience building Xbox. Ronald has now been elevated to a position where he is accountable for Project Helix and the Xbox platform.

Elsewhere on the company’s hardware team, Roanne Sones, a corporate vice president for Xbox devices and ecosystem, will take a long-planned leave of absence later this year and return as an Xbox advisor.

CoreAI vice president of product Jared Palmer, will join Xbox’s platform-level content push “investing in the systems that make it easy to build, submit and scale high-quality games,” with a focus on “developer tooling, taste and infrastructure.” Tim Allen, another key CoreAI staff member, will join Xbox to lead experience design, in a role that merges “product design, design engineering, research, and creative with a fan-first focus.”

Jonathan McKay will become Xbox’s head of growth. Evan Chaki will run a new engineering group focused on removing repetitive work and simplifying development. Both are also moving over from Microsoft’s CoreAI division.

Other changes will see David Schloss, a former colleague of Sharma’s at Instacart, lead the Xbox subscription and cloud business. Kevin Gammill, a 20-year Microsoft veteran who has worked on the Xbox user experience, will meanwhile leave the company.

Tier List

Xbox Games Series Tier List

Xbox Games Series Tier List

 
 
 
 
 

While the quartet of additions to Xbox from CoreAI will likely raise eyebrows — as Sharma’s own move did earlier this year — the changes are believed to be positioned internally as simply about bringing in the best talent, with experience working in Microsoft’s AI division seen as just another part of the company.

The changes follow another bruising quarter for Microsoft’s gaming division. In the three months ending March 31, 2026, Microsoft’s Gaming revenue decreased 7%, Xbox content and services revenue decreased 5%, and Xbox hardware revenue (money made from the sale of Xbox consoles) declined 33%.

“While we have made progress expanding the business and our margins, player and revenue growth has not yet met our ambition,” Sharma wrote last week via a post on social media. “We know we have work to do to earn every player today and into the future.”

Last month brought a new mission statement from Sharma an

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Microsoft

Microsoft Edge stores your passwords in plaintext RAM… on purpose

If you tend to save your passwords in your browser, you need to be more careful. A security researcher from Norway has uncovered a serious vulnerability in Microsoft Edge that shows passwords are stored in memory as plaintext, as shown in this social media post. Any malicious user with local access could easily intercept all

If you tend to save your passwords in your browser, you need to be more careful. A security researcher from Norway has uncovered a serious vulnerability in Microsoft Edge that shows passwords are stored in memory as plaintext, as shown in this social media post.

Any malicious user with local access could easily intercept all your stored passwords…
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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

IREN stayed Bernstein’s top AI-focused Bitcoin miner after a target cut to $100, as Microsoft-backed GPU expansion keeps its $3.7 billion cloud revenue target central to the stock story. The post IREN Doubles Down on AI Cloud Pivot as Bernstein Cuts Target but Keeps Top Pick Rating appeared first on Crypto News Australia…

IREN stayed Bernstein’s top AI-focused Bitcoin miner after a target cut to $100, as Microsoft-backed GPU expansion keeps its $3.7 billion cloud revenue target central to the stock story.
The post IREN Doubles Down on AI Cloud Pivot as Bernstein Cuts Target but Keeps Top Pick Rating appeared first on Crypto News Australia…
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