In context: From the perspective of many gamers, Game Pass offers an incredibly competitive service with multi-platform access to select games and other perks. However, according to Raphaël Colantonio, founder of Arkane Studios, the subscription service will eventually damage everyone in the industry.
Microsoft's Game Pass relies on a business model that Colantonio believes is unsustainable. He argues that Microsoft has been negatively affecting the gaming industry for over a decade. Colantonio, the French designer who founded Arkane Studios (Dishonored, Prey) and WolfEye Studios (Weird West), is convinced that Microsoft is pouring money into a subscription service that is both unprofitable and potentially damaging to the ecosystem.
Colantonio recently sparked a discussion on X, calling Game Pass the "elephant in the room" of the gaming industry. He claims that Microsoft has been subsidizing the service using its vast financial resources. Despite eight years of effort, the company is still trying to reach profitability. Microsoft continues to acquire studios and spend billions of dollars, betting that future subscription revenue will eventually justify this massive investment.
Why is no-one talking about the elephant in the room? Cough cough (Gamepass)
– Raphael Colantonio (@rafcolantonio) July 5, 2025
According to Colantonio, Game Pass cannot coexist with other business models in the industry.
He believes Microsoft will either dominate the market entirely or eventually abandon its strategy to convert every gamer into a paying subscriber. Michael Douse, Publishing Director at Larian Studios (Baldur's Gate III), has also noted that Game Pass impacts direct game sales, despite Microsoft's statements to the contrary.
Colantonio acknowledges that Game Pass can be a great deal for consumers, but argues that it only works because Microsoft is injecting billions of dollars to keep it attractive – at least for now.
Recently, Microsoft laid off thousands of employees from the Xbox division, and Executive Producer Matt Turnbull attempted to use the layoffs to promote the company's AI services.
Colantonio dismissed the justification of these layoffs as part of a shift toward AI investment, calling it a "bs excuse." He warned that if Microsoft succeeds in eliminating the competition, the quality of Game Pass will decline and subscription prices will rise. For now, the service remains affordable only because Microsoft is willing to subsidize it and in Microsoft's hope to kill the competition, Colantonio said.
Many gamers disagreed with Colantonio, taking Microsoft's side instead. Charging consumers $80 for unfinished games is much more unsustainable than the Game Pass subscription business, some argued. This kind of broken experiences belong to Game Pass, because today's AAA games tend to be low quality, games-as-a-service copycat services at launch filled with microtransactions to recoup costs or make a fast buck.
"Absolutely, what you describe is one of the 5 reasons the industry is in the shitter," Colantonio responded.
Arkane founder warns Game Pass is "unsustainable" and could harm the gaming industry
