For years now, there have been a lot of questions about the sustainability of Xbox Game Pass. The subscription service offers a significant bargain for subscribers, but there have been big concerns about the actual impact that it has on game sales and the perceived value of video games. Xbox has frequently denied that the service has any negative impact, but it certainly seems to be cutting into first-party game sales. In the wake of the recent lay-offs at Xbox, Arkane Studios founder Raphael Colantonio discussed the “elephant in the room” that is Xbox Game Pass.
“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 wrote in a post on X/Twitter.
Some third-party developers have seen a positive impact from Xbox Game Pass. Earlier this year, Pocketpair communications director and publishing manager John “Bucky” Buckley said that releasing Palworld on the service was “very worth” it. In 2022, Ryu Ga Gotoku Studio head Masayoshi Yokoyama similarly attributed the increased success of the Yakuza/Like a Dragon franchise in the west to subscription services like Xbox Game Pass. However, it’s worth noting that Yokoyama was specifically talking about how the service gave players a chance to experience older games, which spurred an interest in new entries. The series is also no longer available on Game Pass.
Colantonio doesn’t seem to take issue with older games being offered. In a follow-up post, the Arkane founder notes that “the only way GP can co-exist without hurting everyone is for the back catalogue.” The implication being that it’s the day one releases on the service that are the real problem. Looking at some of Xbox’s first-party releases on Xbox Game Pass, it’s hard to deny that the service is cannibalizing sales. Xbox touted Hi-Fi Rush reaching three million players, which would normally be pretty impressive for a new property. Despite that success, Microsoft made the decision to close developer Tango Gameworks during a round of lay-offs and closures in 2024; it was only the timely intervention of Krafton that helped save Tango Gameworks at the last minute.
While developers are sharing a lot of concerns about the value of putting their games on Xbox Game Pass, it doesn’t look like Microsoft has any plans on changing course. The company has gone all-in on Game Pass over the last few years, bringing it to multiple platforms, and touting the idea that anything capable of accessing the service can be considered an Xbox. It’s clear that Microsoft considers Game Pass the true future of Xbox as a brand, but with the studio’s first-party games struggling to reach sales targets as a result of day one releases, it feels like something might have to change.
Do you think Xbox Game Pass is having a negative impact on the video game industry? Should the service stop offering day one releases? Share your thoughts with me directly on Bluesky at @Marcdachamp, or on Instagram at @Dachampgaming!
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