Game Pass provides an appealing subscription service to Xbox and PC gamers, giving access to myriad titles for a low cost. However, the financial implications for the gaming industry are concerning, as game development is increasingly expensive. Industry voices, like Raphael Colantonio, express that Game Pass's model may not be sustainable for long-term health, cautioning it could stifle competition and harm developers. Despite its growth to 35 million subscribers, the model raises questions about its impact on profitability and industry dynamics, especially with significant annual investments by Microsoft.
"I think Gamepass 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," Colantonio said in a reply to a post from a follower. "I don't think GP can co-exist with other models, they'll either kill everyone else, or give up."
According to a Bloomberg report in 2024, Microsoft spends a billion dollars a year to get third-party games on its subscription service. That's in addition to the billions the console-maker has spent acquiring marquee studios like Bethesda Softworks and Activision Blizzard.
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