Microsoft has laid off thousands of employees, including significant cuts to Xbox studios and a studio closure. Phil Spencer, Microsoft Gaming CEO, emphasized the need for sustainability in the Xbox business model. Raphael Colantonio, co-founder of Arcane Studios, criticized the Game Pass strategy as unsustainable and damaging. He believes Game Pass cannot coexist with other models and challenges Microsoft's claim that Game Pass does not affect game sales. Responses from various industry leaders show mixed opinions on the impact of Game Pass on game valuations and launches.
"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. I don't think GP can coexist with other models. They'll either kill everyone else, or give up."
"I am also fed up with Microsoft's assertions that Game Pass doesn't affect the sales of games."
"Take-Two CEO Strauss Zelnick has specifically said day-one launches on Game Pass do not make sense for the company."
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