Latest news with #RaphaelColantonio
Engadget
6 hours ago
- Entertainment
- Engadget
Arkane founder calls Game Pass an 'unsustainable model' that's wrecking the industry
Arkane Studios founder Raphael Colantonio had some harsh words for Game Pass in a thread on X, calling it an "unstainable model" that's "damaging the industry." He also said that Microsoft's ability to throw "infinite money" at the platform will eventually wane because "reality has to hit." Colantonio continued by saying Microsoft will "kill everyone else, or give up" and that gamers only like the service because "the offer is too good to be true." He also wrote that these same players will turn on the platform when "they realize the effects on the games," alluding that the Netflix-style approach allows for underwhelming titles. His remarks follow last week's major layoffs, in which Microsoft let go of over 9,000 people. Many of the impacted employees were involved with the company's gaming divisions and first-party developers. Halo Studios lost people, as did the Candy Crush maker King. Some studios were shuttered and a bunch of games were cancelled. It sucked. However, the general consensus is that Microsoft's continued investment in AI played a role in these layoffs, and not the existence of Game Pass. Colantonio says that AI's involvement "might be a BS excuse." While there's no evidence that the subscription-based catalog service contributed to the job cuts, there is some data that suggests Game Pass hurts the sales numbers of titles under its umbrella. This makes a certain amount of sense. AAA games are $70 and Game Pass is $10 to $20 per month. Anecdotally, I picked up a subscription to play Indiana Jones and the Great Circle instead of buying the game directly from Bethesda. Arkane Studios is the firm behind games like Deathloo p, Dishonored and Prey . The company's currently working on a game based on Marvel's resident vampire hunter Blade.
Time of India
16 hours ago
- Business
- Time of India
'At some point reality has to hit,' says ex-Arkane founder Raphael Colantonio on Game Pass — 'this model just doesn't work long-term'
(Image via @saudigamer's 'X' Account) Raphael Colantonio, ex-Arkane Studios founder, has recently delivered a stark assessment of Xbox Game Pass. He suggested that the gaming giant's flagship subscription model harbors fundamental laws. His comments amidst the recent project cancellations and Microsoft layoffs point to long-term viability concerns that can reshape the industry landscape. He even hinted at the inevitable reckoning of the approach that's been championed by Microsoft. Raphael Colantonio issues stark warnings The ex-Arkane Studios founder didn't mince his words on Xbox Game Pass. He straightaway labelled it as an 'unsustainable model' that has been actively damaging the industry. As per his argument, this damage has been masked for many years by Microsoft's vast financial resources. He called it their 'infinite money' that's subsidizing it all and artificially propping up the service, but economics is not adding up for most publishers and developers. Making some bleak core predictions, he said, coexistence with the traditional sales models for Xbox Game Pass is impossible. As he contends, Game Pass faces a binary future. It would either dominate to the point of eliminating all competitors, or Microsoft would be forced to abandon it entirely. In his words, " At some point reality has to hit." Colantonio's comments put a lot of emphasis on the inherent long-term weakness of this model and show increased skepticism from the industry veterans. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 새로 나온 '실비보험', 합리적인 가격과 실속있는 보장으로 최적가 비교가입!... 굿리치 [등록번호:제2006038313호] 가입하기 Undo These veterans believe the subscription services can devalue games or destabilize the development budgets. Job cuts and corporate pressures create a ripple effect Colantonio's critique has emerged amidst the significant turmoil in Microsoft's gaming division. The recent months saw deeper cuts, including some high-profile project cancellations. Rare's Everwild and Initiative's 'Perfect Dark' reboot, apart from studio closures, as per him, these actions were not isolated incidents. Journalists Tom Warren and Jez Corden have reported that these stemmed from intense financial pressure. As per reports, Microsoft's CFO Amy Hood recently set some aggressive and potentially unrealistic targets for Xbox. As noted, the pressure intensified quite significantly, following Activision Blizzard's massive acquisition. The sheer cost of the deal, together with Game Pass investments trying to be profitable, has created a challenging new financial reality. Further compounding the struggles of Xbox is Microsoft's strategic pivot. $80 billion, a very significant resource, has been redirected to generative AI, a priority that's been championed by CEO Satya Nadella and Hood. Such a shift within investment focus, completely away from gaming, has further squeezed the operating environment of Xbox, putting it in a precarious position, with further turbulence expected ahead. Gaming Industry concerns for Xbox Game Pass are rising Colantonio is not alone with his skepticism. Even Michael Douse, the Publishing Director at Baldur's Gate 3 developer Larian Studios, has echoed the concern about sustainability. He did highlight a widespread industry question— "What happens when all that money runs out?" The fear now deters many publishers from completely embracing the model of Game Pass. Both Colantonio and Douse are seeing a potential compromise being made. As per their suggestion, subscription services can find a sustainable niche, keeping the primary focus on back catalogue titles, which are older games that are beyond the initial sales peak. As per their argument, launching major new releases on day one of subscription undercuts traditional sales. It creates unsustainable economics for most publishers and developers not named Microsoft. Can Xbox Game Pass survive without hurting the industry? Future of Xbox Game Pass now remains a pivotal question. As Microsoft continues to balance colossal investments, shifting AI focus and corporate expectations, the viability of the subscription cornerstone does face its sternest test. The warning of Colantonio for now serves as a potent reminder that even all that infinite money cannot defy economic reality forever. Despite all warnings, Microsoft is pushing Game Pass, banking upon subscriber growth. Yet, with no clear path to profitability and high skepticism from industry, subscription gaming's future remains uncertain. To wrap up, Colantonio's critique puts forward an important question: Is Xbox Game Pass sustainable?, or is it a bubble that has been waiting to burst?' With Microsoft trying to navigate financial pressures and has been facing a lot of industry backlash, the next few years ahead could determine whether subscription gaming will collapse under its own weight or thrive. Game On Season 1 continues with Mirabai Chanu's inspiring story. Watch Episode 2 here.
Forbes
a day ago
- Entertainment
- Forbes
Some Developers Turn A Stern Eye Toward Xbox Game Pass After Layoffs
Xbox Game Pass Microsoft sparked about a dozen different headlines when 9,000 person layoffs at the company hit Xbox in part, causing job losses, entire studio closures and game cancellations. That's sparked many debates about the company, its future and its strategies, but it's rare to see the developers in the trenches speak all that openly about it. The ex-founder of the currently Microsoft-owned Arkane Studios and current President & Creative Director of WolfEye Studios, Raphael Colantonio, took to Twitter to point out the 'elephant in the room' when it comes to many issues at Xbox, Xbox Game Pass. Here's what he said about the subscription model, which offers a large number of 'free' games when players subscribe: The conversation drew in Larian (of Baldur's Gate 3 fame), Director of Publishing Michael Douse: Baldur's Gate FEATURED | Frase ByForbes™ Unscramble The Anagram To Reveal The Phrase Pinpoint By Linkedin Guess The Category Queens By Linkedin Crown Each Region Crossclimb By Linkedin Unlock A Trivia Ladder Douse and Colantonio then launched into a conversation about how Game Pass very much does hurt game sales despite Microsoft previously indicating the opposite. Douse says he prefers Sony's 'lifecycle management strategy.' The idea behind Xbox Game Pass is, at its core, the ability to give players the opportunity to play day one, first-party releases on Xbox if they subscribe. Even in an era of Xbox games moving to PlayStation, those are paid copies or on a time delay, so Microsoft thinks that still holds appeal. That gets more complicated when it's third party developers who are swept into the concept of Game Pass launches, a practice that feels like it's happening with less frequency in time. This is where the 'infinite money subsidization' Microsoft pays to offset lost sales comes in, but many view this as unsustainable, which is now coming up with these layoffs and closures. Microsoft has leaned hard into Xbox Game Pass subscriptions in recent years, pushing the concept harder than its hardware sales, which have declined precipitously. Game Pass experienced a huge surge of sign-ups during the COVID years, but growth has tapered, and a ceiling has to be in sight. Microsoft is still very much viewing Game Pass as its primary appeal, but as you can see, it is starting to get harder and harder to get non-first-party developers on board. We'll see if that can change or if the issues are set in stone. Follow me on Twitter, YouTube, Bluesky and Instagram. Pick up my sci-fi novels the Herokiller series and The Earthborn Trilogy
