Last week, Microsoft laid off thousands of workers across the company, including major Xbox studio cuts and even a studio closure. Microsoft Gaming CEO Phil Spencer has stated that the cuts were necessary and that Xbox needs to be a sustainable business. Now, Raphael Colantonio–one of the co-founders of Arcane Studios–has reacted to the wave of layoffs and argued that Microsoft’s Game Pass strategy is “unsustainable” and bad for the industry’s long-term health.

“I think [Game Pass] is an unsustainable model that has been increasingly damaging the industry for a decade, subsidized by MS’s ‘infinite money,'” write Colantonio on X. “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.”

Colantonio added that he is also “fed up” with Microsoft’s assertions that Game Pass doesn’t affect the sales of games. In a later post, Colantonio wrote that he can explain at length “why the [math doesn’t] work for most publishers/devs, nor for Xbox once they stop investing.”

Raccoon Logic studio head Alex Hutchinson spoke out about Game Pass devaluing games earlier this year after his game Revenge of the Savage Planet was a day-one title on Xbox Game Pass. Conversely, Rebellion touted the launch of Atomfall on Game Pass as a huge success for the company. Earlier this year, Id Software co-founder John Romero endorsed Game Pass as the Netflix for gamers. Romero’s studio had funding pulled from its project just last week, with many inferring Microsoft was responsible. It’s unclear if the studio will continue to operate in any capacity.

Regardless, Gearbox boss Randy Pitchford recently stated that it will probably be years before Borderlands 4 hits Game Pass. 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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