Latest news with #RaphaelColantonio
Time of India
08-07-2025
- Entertainment
- Time of India
How Xbox's Game Pass policies is signalling the doom for the AAA industry
(Image via Getty Images) Microsoft Xbox Game Pass provides gamers with unprecedented access to hundreds of titles for a very minimal monthly fee. Yet beneath its player-friendly model, as suggested and warned by industry leaders, there's a gathering storm. This storm as per them, threatens blockbuster game development's very foundation. Be it unsustainable developer payout or cannibalising sales, Xbox Game Pass, as per reports, is setting a dangerous precedent. The subscription giant and its strategy, as argued, are quietly undermining the AAA ecosystem's economic pillars, forcing a reckoning that the industry might not survive without being unscathed. Game Pass policies have an unsustainable core At the heart of this entire crisis is Game Pass's fundamental economics. As argued by Industry veterans, Microsoft leverages vast resources for subsidizing services. It creates an artificially lower price point. The model, as contended by critics, distorts market value—artificial market conditions created with traditional sales struggling to compete. Xbox Dev BLASTS Xbox Game Pass: 'This Model DESTROYS Studios' Ex-founder of Arkane Studios, Raphael Colantonio, bluntly labelled Game Pass as unsustainable. As per his assertions, it 'progressively harmed' the gaming industry for over a decade now, and it survives on corporate subsidies instead of genuine value. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Our one of a kind Patented Cold Water Extraction Process Superior Ginseng Undo He further added that it's propped by Microsoft's 'infinite money'. It is feared that Microsoft will persist until all alternative business models are crushed. It will leave all developers with a very limited choice. Xbox Game Pass for Developers Acts as Double-Edged Sword Microsoft's subscription model promises guaranteed payouts and exposure for developers. But as revealed, Game Pass instead devalues games, conditioning players to expect content for just 'free' under their subscription. Probably this was the reason why some major AAA titles, including Monster Hunter Wilds, Kingdom Come: Deliverance II, and Civilisation VII, avoided Xbox Play Anywhere, which is meant to unify the platform. Even Towerborne, the Xbox-published game, chose to launch its early access on Steam and not Xbox. That's a sign of some internal doubts about the health of the Xbox platform. While smaller studios benefit from all upfront payments, AAA developers face a huge dilemma. If some major titles launch on Game Pass, the standalone sales of the game plummet. Despite Microsoft compensating them, in the long term, this model discourages purchases made at full price. It shrinks revenue streams while funding big-budget games. It even fails to attract Indies or AAA developers. Cannibalized sales create a devastating impact To understand the above-said better, when a game makes its debut on Game Pass, players do not need to buy it outright. While Microsoft does pay off developers for offsetting losses, it doesn't replace the traditional sales value that could have been otherwise generated. As said, or rather warned by Michael Douse, Larian Studios' publishing director, 'infinite money doesn't make sense forever.' The AAA Gaming Industry Just Got Destroyed From The Inside With evidence suggesting that Game Pass cannibalizes traditional sales, particularly on the Xbox platform, there are many who are now raising their voices against it. As per Industry journalist Christopher Dring, games that are launched on Game Pass can easily be expected to lose around 80% of the expected Xbox premium sales. Taking an example of Starfield, its inclusion within Game Pass boosted subscriber members. However, it likely slashed its direct sales. Even Hellblade 2 and Indiana Jones and the Great Circle underperformed in their full-priced Xbox sales. While Microsoft might not have directly blamed it on Game Pass, the correlation here is just undeniable. Even players start to gravitate to 'free' access through subscription and bypass outright purchases. Such correlation is not coincidental, but it is structural. When any major release lands on the Xbox Game Pass, buying it becomes redundant. Now, if this starts to become a new norm, studios, especially AAA studios, might struggle to justify massive budgets. This will lead to a few AAA risks and a high reliance on Microsoft's funding. Xbox Game Pass offers a false lifeline to smaller studios Proponents quite often highlight that Game Pass does act as a boon to smaller developers and all the risky new IPs. Douse acknowledges this potential. As noted by him, it could derisk those smaller teams' launch, which face uncertain markets, but what exactly would happen when all the money runs out? Is Xbox Game Pass BAD for Developers? The current model is reliant on continuous and massive investments made by Microsoft to secure content. However, if funding shifts or slows down, the safety net for smaller studios would vanish overnight. It would leave them exposed, without any security for the creative risks. Game Pass: Destroying Gaming? Indie Devs Reveal Shocking Truth! But wait, there's more beyond money running out. Game Pass, which initially was praised to help Indie games reach a wide audience, isn't the same anymore. With growing services, smaller titles are at higher risk of getting buried within an oversaturated catalogue. Unlike Steam, where the games remain purchasable quite indefinitely, Game Pass keeps rotating titles in and out. It leaves developers scrambling for needed visibility. Even some successful indies are now facing a catch-22—Microsoft's short-term payouts vs. Long-term sustainability. If the players do not buy outside the subscriptions, Indies would lose leverage over pricing and discoverability at the same time. Player Advantage vs Developer Disadvantage Why Xbox Game Pass Ultimate is Still the Best Deal For the players, Game Pass is quite an undeniably phenomenal deal. It gives instant access to a vast library that includes all major releases. With day-one access to the content, there's an incredible value for players. It democratizes gaming. It makes AAA experiences affordable for those who might not otherwise participate in them. But what about AAA studios? They get forced to profit outside the subscriptions, and for it, they would either cut budgets or shift to live-service models, to sustain revenue. Is XBOX Game Pass Bad for Developers? For developers, especially those who are behind those large-budgeted AAA games, the entire picture is more grim. Xbox Game Pass subscription model devalues individual titles. Players who are accustomed to the lower monthly fee just become resistant to paying $70 for a purchase. This creates a shift in revenue stream from direct sales to those opaque subscription payouts as per engagement metrics. It creates huge financial uncertainty that is lethal for the AAA industry, especially for studios that invest $200M+ in projects. It is due to this that Colantonio has suggested Game Pass to keep its focus on back-catalogue titles and not day-one releases. It will help preserve sales for the newer games while still continuing to offer value. But will Game Pass do so? Only time can tell about it. Escalating situation seeks balance before the bubble bursts The industry is not calling for the demise of Game Pass, but it wishes for a critical reassessment. Colantonio and many others have already suggested a sustainable path for it—Game Pass must primarily function as the back-catalogue service and not the day-one AAA release platform. It will help preserve the value proposition for the players. It will also protect the economic model, which is required to fund ambitious and new projects. The current trajectory that's been fueled by deep pockets of Microsoft risks creating a market where only subscription giants could survive. Without bringing in an urgent policy adjustment or a fundamental shift within the Game Pass model, the ability to fund next-generation, groundbreaking AAA experiences faces existential peril. So, in short, the time for a balance is right now. What will the AAA industry be without this balance? WILL XBOX GAME PASS LAST? Pros & Cons of Microsoft's Game Pass The gaming industry today is at a crossroads. If the Game Pass continues to dominate, the world will see fewer big-budget single-player games, which will also be riskier without a direct sales line. There will also be more live-service and microtransactions models for offsetting lost revenue. Additionally, with increased consolidations of studios under Microsoft, competition will be reduced. The solution is therefore simple. There's a need for a balanced approach. Subscriptions must complement, instead of replacing, the traditional sales. Otherwise, Xbox Game Pass might accelerate the decline of AAA games, on which it relies. Game On Season 1 continues with Mirabai Chanu's inspiring story. Watch Episode 2 here.
Engadget
07-07-2025
- 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
07-07-2025
- 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
06-07-2025
- 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
