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[LakeOf9]

Why did Microsoft gobble up so many studios only to cancel their apparently promising games, like the Blizzard survival game that employees were hyped about, or the ZeniMax MMO that even Microsoft Gaming head Phil Spencer himself reportedly liked? And why should the employees of a company making billions in profit have to be in constant fear that they're next on the chopping block? Microsoft CEO Satya Nadella's executive compensation rose 63% in 2024 to $79 million.

But that doesn't entirely explain why Microsoft is cancelling games and laying off dev teams at the same time as it's boasting about having "more players, games, and gaming hours than ever before." Our best hypothesis for that apparent contradiction: Microsoft's acquisitions were all about feeding Game Pass, and as successful as the subscription service has been, it hasn't turned out to be the gold mine it hoped for.

According to discovery documents during the FTC's challenge to the Activision Blizzard merger, Microsoft had a goal of over 100 million Game Pass subscribers by 2030. Game Pass currently boasts north of 35 million subscribers after eight years of existence⁠, with five more to go until the 2030 deadline. If that initial goal still stands, we can probably expect many more mass layoffs in the future.

Game Pass is undeniably a convenient, economical way for players to access a large catalogue of games, and the service saw rapid adoption. Intuitively, though, it's another force (like Steam sales) driving down the perceived value of games, and Game Pass uniquely harms their retail success⁠—would you rather buy Avowed for $70, or get it through PC Game Pass for $12/month?

The math works if Microsoft keeps getting new Game Pass subscribers, who are enticed to the service with the constant addition of new games. And from the outside, it does appear to be working—Windows Central reported in April that PC Game Pass revenue was up 45%—but Microsoft apparently wants more. Something is clearly very wrong if success continues to result in these mass layoffs, studio closures, and project cancellations.

What's especially worrying is that this should have been a particularly great year for the service, the likes it may not see again for some time, buoyed as it was by the first post-merger Call of Duty on Game Pass. I have my doubts that even an Infinity Ward entry will cause a similar stir, The Elder Scrolls 6 ain't walking through that door anytime soon, and Xbox has committed to starving itself of fuel for the Game Pass engine with every layoff and studio closure. The enduring legacy of Xbox's explosive late '10s and early '20s expansion, buying up so many beloved studios, appears to be a massive injection of misery into gaming as an industry and hobby.

A longer article that you can see here: https://www.pcgamer.com/gaming-indu...-future-of-gaming-and-were-all-paying-for-it/

Overall though, yes, as much of a good deal Game Pass may have been for customers (and possibly because of that) it is clear that to make the math work required a degree of such enormous ongoing investment that it was unpalatable for a company like Microsoft to keep it going.

Phil Spencer bet the farm on Game Pass. He lost.

 

[mayham2199]

Feels like everyone is out for blood on MS lately. This news has gone on longer than I thought it would. I figured after a week people would let it go. Dukes had another podcast discussing all of it again. Matty got rid of GP and wont use it anymore.

 

[Kerotan]

We're all paying for them releasing the pathetic series S aswell.

 

[adamsapple]

Game Pass is undeniably a convenient, economical way for players to access a large catalogue of games, and the service saw rapid adoption. Intuitively, though, it's another force (like Steam sales) driving down the perceived value of games, and Game Pass uniquely harms their retail success⁠—would you rather buy Avowed for $70, or get it through PC Game Pass for $12/month?

Some nice advertisement for Game Pass here, PCGamer.

 

[Gonzito]

I'm not usually a fan of PC Gamer, but I have to admit that they nailed it with this article.

We're all paying the price for this broken gaming subscription model that treats games like fast food, it makes them cheap, disposable, and stripped of value.

Fucking Xbox man

 

[Sebastian1295]

Some nice advertisement for Game Pass here, PCGamer.

It's sunk the brand to the lowest depths that it's ever been too.

 

[Rocco Schiavone]

I'm not paying for it.

 

[digoutyoursoul]

Feels like everyone is out for blood on MS lately. This news has gone on longer than I thought it would. I figured after a week people would let it go. Dukes had another podcast discussing all of it again. Matty got rid of GP and wont use it anymore.

Probably too late for criticism, they were never going to improve substantially by surrounding themselves with people who tell them they can do no wrong.

We still have people in the media saying certain individuals are doing a good job because they are approachable and easy to talk to at events and interviews. Forget about what really matters.

 

[ToadMan]

As I mentioned in the Xbox sales crash thread.

XBox consoles = majority of GP subs.

But Xbox consoles are not growing, therefore GP subs not growing. GP revenue grows through price rises but the market can only stand so much of that.

End result, not enough money to oil the wheels of a $80bn zeni + ABK acquisition cycle.

I mean MS won't break down the financials, so we're just left looking at their actions to determine what's happening.

Layoffs and cancelling games that would have come to GP, going third party with the rest, is the tell that something is up with the financials.

Ironically, not only has GP killed Xbox hardware due to low sales, but now the games that the service has been hyping are getting cancelled.

MS is failing to take the hard decisions, and instead has created a massive PR stink even worse than it was 2 weeks ago.

 

[Zacfoldor]

The boat your are on is the industry. Gamepass is sinking it. MS' plan is clear. They want to sink everything, ride it out and take what's left. Let it go. Companies are not your friends and you usually should not be helping them accomplish their evil goals just because they gave you a coupon.

 

[FIREKNIGHT2029]

Great article from them. Seems these shitty game journalists sites are finally doing their jobs after so many years. They are asking hard questions and questioning Microsoft's motives in gaming. It's definitely not fair that devs that have contributed so many years of their lives to making a game and making Microsoft rich can have their livelihoods taken from them and their games cancelled at the drop of a hat for no real reason.

Microsoft is claiming that their gaming business and GamePass are doing so well so why do their devs have less job security than indie devs? At least when indie devs make a successful game they get to keep their jobs or decide the direction they want to go with their careers. Microsoft will praise your game for being successful or amazing and then shut you down the next day. There's no logic to their madness.

If GamePass is as successful as MS claims it is then their devs should have nothing to worry about. After all, one of the big pitches for GP back in the day was that it would take the risk out of gaming thanks to the constant revenue it brings in. Someone at MS is clearly lying and the true success and benefits of GamePass should be questioned.

 

[Baemono]

Oh now you like PC Gamer

 

[Punished Miku]

 

[Baemono]

If GamePass is as successful as MS claims it is

They never said it was, they said "it's not for everybody", "at some point you reach a ceiling of subscribers" and "it's sustanable" (but that was back in 2021 or 2022 I believe), and that it grows without giving actual numbers.

 

[Crayon]

Isn't 35m counting the gold sub they changed the name of?

 

[Baemono]

Isn't 35m counting the gold sub they changed the name of?

Yes, and it's actually 34 million even

 

[Dr Bass]

Isn't 35m counting the gold sub they changed the name of?

Pretty sure it was.

 

[FIREKNIGHT2029]

They never said it was, they said "it's not for everybody", "at some point you reach a ceiling of subscribers" and "it's sustanable" (but that was back in 2021 or 2022 I believe), and that it grows without giving actual numbers.

That's not true, they've been screaming about the success of GamePass for a while now. Right in the article there PC Gamer even mentions GP revenue growth was up 45% according to MS. The only thing they ever admitted was that console GP growth was stagnant but Phil said PC GamePass growth was steady and solid last time he was asked about GamePass.

 

[RetroGamingUK]

The boat your are on is the industry. Gamepass is sinking it. MS' plan is clear. They want to sink everything, ride it out and take what's left. Let it go. Companies are not your friends and you usually should not be helping them accomplish their evil goals just because they gave you a coupon.

Thankfully it hasn't panned out that way.

However a lot of damage to the US games industry has been done.

 

[Baemono]

That's not true, they've been screaming about the success of GamePass for a while now. Right in the article there PC Gamer even mentions GP revenue growth was up 45% according to MS. The only thing they ever admitted was that console GP growth was stagnant but Phil said PC GamePass growth was steady and solid last time he was asked about GamePass.

They mention growth in some specific parts, without giving actual data. « 45% growth in pc gp users » yeah but from what to what ? We know almost everybody is on console anyway, doesn't say much.

They don't actually claim it is a success, far from it

 

[FIREKNIGHT2029]

They mention growth in some specific parts, without giving actual data. « 45% growth in pc gp users » yeah but from what to what ? We know almost everybody is on console anyway, doesn't say much.

They don't actually claim it is a success, far from it

Phil is a snake oil salesman. He made it sound like it was successful and you hear it all the time from the GamePass disciples on the forums and Twitter.


I know it's not successful but his wording and the parts where he talks positively about its growth makes it sound successful. Even this PC gamer article is making it sound like GP is successful, showing that the PR behind it is working on the masses. The success that is being projected isn't matching the layoffs we are seeing and that's why people are upset and questioning MS.

 

[Pop]

I pay a dollar every couple of months to play something.

Now a dolla only good for 2 weeks, whatever

 

[RCX]

PC game pass revenue up 45%!
-Microsoft, April 2025

45% up from fuck all is a less impressive and more honest way of saying it. I'd wager they've already hit a ceiling on subscribers.

 

[Windle Poons]

I pay a dollar every couple of months to play something.

Now a dolla only good for 2 weeks, whatever

I don't pay at all and never have. Still reap the rewards of GPU.

 

[clarky]

Phil Spencer bet the farm on Game Pass. He lost.

Looks that way for sure.

Just my own thoughts but I think xbox was toast way back and good old Phil sold Nutella the idea of a game sub service as a way to "save" xbox. Hence "we are all in on gaming".

Obviously looking like the better option in hindsight was to kill it there and then because now we have a right old mess.

What bunch of clowns.

 

[FoxMcChief]

Is it cool to like PC Gamer again?

 

[clarky]

Is it cool to like PC Gamer again?

Was it ever?

 

[adamsapple]

Is it cool to like PC Gamer again?

 

[FIREKNIGHT2029]

Is it cool to like PC Gamer again?

Nope, they are still a shitty publication but a dead clock is right twice a day.

 

[digoutyoursoul]

Looks that way for sure.

Just my own thoughts but I think xbox was toast way back and good old Phil sold Nutella the idea of a game sub service as a way to "save" xbox. Hence "we are all in on gaming".

Obviously looking like the better option in hindsight was to kill it there and then because now we have a right old mess.

What bunch of clowns.

Great games with a consistent roll out of them year on year was what would have helped Xbox. He obviously disagrees given his past comments.

The warning signs were there when they kept going on and on about the service and then they finally, after years of what was obviously needed, started to boost their studio/IP capacity . It took a subscription service for them to at last make some moves to boost first party.

I never understood why they got support from fans for only having a handful of studios that mostly make the same IPs.

If they had a couple of those studios have two teams they potentially could of had something of a Series X launch line up rather than solely relying on a obviously underwhelming Halo game that needed more work.

 

[Rush2112]

Lets not forget tons of acquisition with mid to low end fizzles of exclusives (starfield, stalker, …). It wasnt just gamepass. Theres only so much dick your games can suck before people start walking away.

 

[Baemono]

I know it's not successful but his wording and the parts where he talks positively about its growth makes it sound successful. Even this PC gamer article is making it sound like GP is successful, showing that the PR behind it is working on the masses. The success that is being projected isn't matching the layoffs we are seeing and that's why people are upset and questioning MS.

That's because most people aren't familiar with MS' PR stunts

And also don't understand what quarterly earnings actually mean

 

[ChorizoPicozo]

here come chorizo to make fun of Jiz:

Here come Jiz to damage control:

But the Rubicon has been crossed: GP Killed Xbox and is killing the industry and it's worse than piracy. "cancell Gamepass" Movement is in full effect.
Good luck Phil changing the narrative

 

[ChorizoPicozo]

 

[Killjoy-NL]

It's fun watching people try to accept reality, but still looking for ways to deny it.

 

[bender]

would you rather buy Avowed for $70, or get it through PC Game Pass for $12/month?

 

[diffusionx]

Was it ever?

in like 1997 it was awesome

 

[Sinfulgore]

Game Pass is undeniably a convenient, economical way for players to access a large catalogue of games, and the service saw rapid adoption. Intuitively, though, it's another force (like Steam sales) driving down the perceived value of games, and Game Pass uniquely harms their retail success⁠—would you rather buy Avowed for $70, or get it through PC Game Pass for $12/month?

I feel like this is just another way of saying Game Pass has given consumers higher standards but lets be honest Gamepass hasn't done this; the rise of high-quality free-to-play games has done this.

 

[Sooner]

As a person who prefers PlayStation, but always bought Xbox for exclusives, I love GamePass.

Not to rent games for $250 a year, but because it forces Microsoft to put all their games on PlayStation, meaning I no longer have to purchase another Xbox console.

 

[clarky]

in like 1997 it was awesome

Actually can't argue with that.

But chocolate bars where twice as big. Everything was awesome.

 

[digoutyoursoul]

I feel like this is just another way of saying Game Pass has given consumers higher standards but lets be honest Gamepass hasn't done this; the rise of high-quality free-to-play games has done this.

Gamepass lowered people's standards

Pig shite like Crackdown 3 or other mediocre releases have been dismissed by people as a "oh well i got it for free so it's fine "narrative.

 

[Generic]

Game Pass is undeniably a convenient, economical way for players to access a large catalogue of games, and the service saw rapid adoption. Intuitively, though, it's another force (like Steam sales) driving down the perceived value of games, and Game Pass uniquely harms their retail success⁠—would you rather buy Avowed for $70, or get it through PC Game Pass for $12/month?

Devaluation is good, games are extremely expensive. Charging $70 for a game should be a crime.

 

[clarky]

Gamepass lowered people's standards

Pig shite like Crackdown 3 or other mediocre releases have been dismissed by people as a "oh well i got it for free so it's fine "narrative.

Bullshit.

Nobody plays medicore, free or not.

 

[digoutyoursoul]

Bullshit.

Nobody plays medicore, free or not.

I read those views mate, especially on the Xbox Reddit sub and Twitter.

 

[djjinx2]

I'm not usually a fan of PC Gamer, but I have to admit that they nailed it with this article.

We're all paying the price for this broken gaming subscription model that treats games like fast food, it makes them cheap, disposable, and stripped of value.

Fucking Xbox man

I Hear Xbox ruined this years Steam Sales, fucked up Playstation 1st party output and bought a load of Switch 2s to scalp.

How are we all paying because of GamePass? I was told Xbox is dead and GamePass isn't growing so please do elaborate.

GamePass is an option, don't like it buy the fucking games instead!

We could argue that quality has gone downhill maybe, even then any Bethesda flops or Activision games were in development before the takeovers of either so far.

I think Redfall was shit with or without Xbox would you agree?

I can't believe I'm reading people say GamePass is killing the industry.

How about stagnation and shifting trends killing what we know as the industry. It's evolving not dying. Lack of anything new for many many years, regression even, when it comes to in game physics / world demolition etc. Moores Law in full effect

Rising prices of everything and F2P/Mobile changing the gaming landscape.

BUT NO, it's just failed Xbox killing everything with it's shitty GamePass.

Deluded!

 

[LakeOf9]

I Hear Xbox ruined this years Steam Sales, fucked up Playstation 1st party output and bought a load of Switch 2s to scalp.

How are we all paying because of GamePass? I was told Xbox is dead and GamePass isn't growing so please do elaborate.

GamePass is an option, don't like it buy the fucking games instead!

We could argue that quality has gone downhill maybe, even then any Bethesda flops or Activision games were in development before the takeovers of either so far.

I think Redfall was shit with or without Xbox would you agree?

I can't believe I'm reading people say GamePass is killing the industry.

How about stagnation and shifting trends killing what we know as the industry. It's evolving not dying. Lack of anything new for many many years, regression even, when it comes to in game physics / world demolition etc. Moores Law in full effect

Rising prices of everything and F2P/Mobile changing the gaming landscape.

BUT NO, it's just failed Xbox killing everything with it's shitty GamePass.

Deluded!

Maybe if you read the article, or even the excerpts in the OP, you would have the answers to these questions?

Just a suggestion

 

[Saber]

Instead of gamers deciding the market they tried to shape the market in their form.
Also they brainwash people into thinking that paying for games is something of a bad thing, mascarading as "the best deal in gaming".
If a person pays for something, theres valor in it. When you remove that valor, theres no longer perception of what the price is worth and people often accept things that should be shunned more easly.
For instance a person pays 70$ for a thing, he sure as heck want that thing to be worth of 70$. Thats why when the game launchs and its a breaking mess, theres big outrage. But when said game is broken and is offered on subscritipion, the person has being conditionade to this enviroment that said person "didn't pay anyway so it shouldn't be a bother".

 

[Hero of Spielberg]

Instead of gamers deciding the market they tried to shape the market in their form.
Also they brainwash people into thinking that paying for games is something of a bad thing, mascarading as "the best deal in gaming".
If a person pays for something, theres valor in it. When you remove that valor, theres no longer perception of what the price is worth and people often accept things that should be shunned more easly.
For instance a person pays 70$ for a thing, he sure as heck want that thing to be worth of 70$. Thats why when the game launchs and its a breaking mess, theres big outrage. But when said game is broken and is offered on subscritipion, the person has being conditionade to this enviroment that said person "didn't pay anyway so it shouldn't be a bother".

Valor? Now I've read it all lol

You're a marketing execs dream!

Edit: I see you mean 'value'

 

[LakeOf9]

Instead of gamers deciding the market they tried to shape the market in their form.
Also they brainwash people into thinking that paying for games is something of a bad thing, mascarading as "the best deal in gaming".
If a person pays for something, theres valor in it. When you remove that valor, theres no longer perception of what the price is worth and people often accept things that should be shunned more easly.
For instance a person pays 70$ for a thing, he sure as heck want that thing to be worth of 70$. Thats why when the game launchs and its a breaking mess, theres big outrage. But when said game is broken and is offered on subscritipion, the person has being conditionade to this enviroment that said person "didn't pay anyway so it shouldn't be a bother".

I agree with the general sentiment (I was typing out a post that said something similar myself actually), but can you clarify what you mean by the word "valor" in this context? That is throwing me off.

 

[clarky]

I read those views mate, especially on the Xbox Reddit sub and Twitter.

Nobody who lives in the real word has time for a mediocre videogame unless you are 12 years old or unemployed. Neither demographic is a good customer.