Arkane Studios Founder Declares Xbox Game Pass Unsustainable

Raphael Colantonio and Michael Douse Raise Questions About Xbox Game Pass Sustainability

Raphael Colantonio, who founded Arkane Studios and created games like Dishonored and Prey, has openly criticized the Xbox Game Pass model. He calls it unsustainable, stating it’s been harming the video game industry for about a decade. In a social media comment, Colantonio wondered why no one addresses the “elephant in the room.” He pointed out that Game Pass seems to be fueled only by Microsoft’s virtually limitless resources. Colantonio believes this model will eventually either eliminate other ways to distribute games or simply become unworkable.

Raphael Colantonio now works at Wolfeye Studios. He’s spoken out again about the Xbox Game Pass system, and Michael Douse, who leads publishing at Larian Studios, agrees with him. To Colantonio and Douse, Game Pass could someday make other ways to distribute games obsolete or simply stop working. They’re also worried about how it might affect the industry if investments aren’t as generous. They believe Game Pass might stop coexisting with other models, either putting its competition out of business or risking its own survival. Michael Douse, Larian Studios’ editorial director, joined the discussion with a similar analysis. Douse explained that a major concern in the industry is what happens when investments aren’t so generous anymore. He also stressed that Microsoft’s idea of endless money has never made long-term sense. While acknowledging that Game Pass can be useful for reducing risk on smaller projects, Douse says its benefit is limited.

Both managers point out the issue of “sales cannibalization.” This happens when a game launches directly onto Game Pass: users don’t buy it directly. Instead, payment comes only from Microsoft, which funds its inclusion in the catalog. Douse added that he prefers Sony’s “lifecycle management” model, where games release at full price and later join subscription services. For Colantonio, Game Pass would only make sense if used just for older games, to avoid getting in the way of initial sales periods.

Microsoft’s Xbox Game Pass Model Under Growing Criticism Amid Internal Shifts and Canceled Projects

These statements came at a challenging time for Microsoft’s games division. In 2024 and 2025, the company started a series of internal restructurings, most notably closing several studios like Tango Gameworks, Arkane Austin, and Alpha Dog. On top of that, projects like Rare’s Everwild, a new MMORPG from ZeniMax Online, and a Perfect Dark reboot were canceled. Rare and other teams also saw many people leave and their internal structures change. The current crisis in the Xbox division underscores the doubts Colantonio and Douse have about Game Pass’s sustainability. This is especially true regarding consistent funding and its ability to compete with other business models. The cancellation of ambitious projects and studio cuts confirms worries about relying too much on seemingly endless money that might eventually run out.

Raphael Colantonio, founder of Arkane Studios, has criticized the Xbox Game Pass model, calling it unsustainable and harmful to the gaming industry. He’s stated that Game Pass could eliminate other ways to distribute games or become unworkable. Michael Douse, editorial director at Larian Studios, agreed with this analysis. He highlighted concerns about the future when investments aren’t as generous anymore. Both emphasized that the so-called “cannibalization of sales” is a key issue with the model, since games launched directly onto Game Pass avoid direct purchases. To both, Game Pass only makes sense for older games and shouldn’t interfere with initial sales periods.