Reports say several Xbox studio leaders are strongly critical of Game Pass, arguing that releasing games in the subscription service from day one reduces their perceived value and can undermine direct sales. The debate matters because Microsoft is reassessing how the service supports its gaming business, particularly after its impact on major releases such as Call of Duty.

According to Bloomberg journalist Jason Schreier, some internal leaders view Game Pass as harmful to the wider games industry, while a former studio lead described it as a “race to zero”. Critics also cite opaque performance measures and missed subscriber ambitions; GameSpot reports that Call of Duty will no longer launch on Game Pass on day one. The article says Game Pass was once valuable for giving less-visible games an audience, but Microsoft may further alter its day-one release strategy as Xbox seeks greater profitability.