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Xbox Game Pass isn’t “viable” with so few subscribers, says former Forza lead bracing for more “studios getting shut down”
A former Forza Motorsport lead has warned that Xbox Game Pass's subscriber numbers may be too low to sustain the service, predicting further studio closures at Microsoft's gaming division. The comments add to growing scrutiny of Xbox's strategy following a wave of layoffs and studio shutdowns across the company's game development arm, raising questions about the long-term financial viability of the subscription model that underpins much of Microsoft's gaming ambitions.
The warning comes from someone with direct insider knowledge of Xbox's internal operations, lending weight to concerns that Game Pass has not attracted enough paying subscribers to justify the cost of producing and licensing games for the service. Microsoft has already closed or downsized several studios in recent years, and the former lead suggests this trend is likely to continue unless subscriber growth improves significantly.
In short
- Ex-Forza lead says Game Pass subscriber numbers aren't sustainable
- Warns more Xbox studio closures likely to follow
- Adds to concerns over Xbox's gaming strategy and finances
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Game Pass's economic model appears unsustainable given its current subscriber base. The cost of producing and licensing AAA games is extraordinarily high, and a former Xbox insider with direct operational knowledge warns that revenue from existing subscribers cannot justify these expenditures, explaining the cascade of studio closures and layoffs. Without either dramatic subscriber growth or substantially lower development costs, financial pressure will only intensify.
The case against
Microsoft possesses the financial resources to sustain Game Pass as a strategic long-term investment rather than a short-term profit centre. The service drives hardware sales, software ecosystem engagement, and customer loyalty across the broader gaming platform—benefits extending well beyond subscription revenue alone. Subscription disruptions historically become highly profitable once achieving critical scale, and Game Pass remains in its growth phase with millions of subscribers and expanding global reach.
Explained simply
Game Pass is a subscription service from Microsoft that lets players access a large library of video games for a monthly fee, similar to Netflix for films and television. Microsoft has bet heavily on this model, investing billions to acquire game studios and secure the rights to add popular titles to the service.
Game Pass may not have attracted enough paying subscribers to justify these enormous costs and investments. If the service generates insufficient revenue, Microsoft will struggle to fund new game development and maintain the platform long-term.
Microsoft has already shut down or downsized several game studios in recent years. The ability of remaining studios to continue operating now depends on whether Game Pass can attract and retain enough paying customers.