Arkane Studios Founder Slams Xbox Game Pass Model, Calling it 'Unsustainable'

Raphael Colantonio, founder of Arkane Studios, takes on Xbox Game Pass

Raphael Colantonio, founder of Arkane Studios and creative mind behind Dishonored and Prey, has openly criticized Xbox Game Pass, calling it an "unsustainable model" that’s hurting the gaming industry. His comments come at a time when Microsoft is under scrutiny following major layoffs that have shaken up its gaming division, including Xbox and its partnered studios.

In a candid post on social media, Colantonio referred to Game Pass as “the elephant in the room,” especially in light of Microsoft’s ongoing downsizing. When asked to elaborate, he didn’t mince words: “I think Game Pass 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.” According to him, Game Pass and traditional game sales models can’t co-exist long-term — one will inevitably kill off the other.

Adding to the conversation, Michael Douse, publishing director at Larian Studios (Baldur’s Gate 3), shared similar concerns. As per Douse, many in the industry remain skeptical of Game Pass because of the looming question: “What happens when all that money runs out?” The idea that Microsoft’s deep pockets could endlessly sustain Game Pass, he suggested, has never made much financial sense to many developers.

Both Colantonio and Douse pointed out the issue of “sales cannibalization” — the idea that launching a game on Game Pass could significantly reduce its direct sales. While Microsoft offers upfront payments to feature titles in the subscription, that doesn’t always translate to long-term gains for developers, especially smaller ones. Douse did acknowledge that the model can be useful for de-risking certain projects, but the benefits appear limited.

Colantonio went further by suggesting a shift in how Game Pass is used — proposing it should be reserved only for back-catalogue content rather than day-one releases. He also compared Microsoft’s model unfavorably to Sony’s approach, saying PlayStation’s “lifecycle management” of games is far more sustainable.

Amid wider industry turbulence, including the cancellation of titles like Perfect Dark and the closure of various Xbox studios, Colantonio believes Game Pass is just one part of a broader issue. He also cited the prevalence of live-service models and unfinished game launches as key contributors to the current state of the gaming world.

Colantonio described Game Pass’s profitability as more of a “spreadsheet trick” than true financial success. The long-term sustainability, he said, relies on pumping out a massive amount of content — something he called “throwing a tsunami” into the ecosystem. He predicted that gamers might eventually “hate Game Pass” once they fully realize its effect on the quality and diversity of games.

This isn’t the first time a developer has taken aim at Microsoft’s subscription model. Recently, one of the creators behind Journey to the Savage Planet also voiced skepticism about the platform. It’s becoming clear that while Game Pass has fans, it also has its fair share of critics from within the development community.

Despite these criticisms, Microsoft appears committed to evolving Game Pass, with new updates and retro titles continuing to be added. Whether the model can adapt and thrive without compromising the health of the industry remains to be seen.