Latest news with #Colantonio
Business Insider
09-07-2025
- Business
- Business Insider
Veteran Game Developer Calls Microsoft's (MSFT) Xbox Game Pass ‘Unsustainable'
Microsoft (MSFT) may be putting a billion dollars a year into Xbox Game Pass, but one veteran game developer believes the model is 'unsustainable.' WolfEye Studios founder Raphaël Colantonio said as much in a post on X, formerly Twitter. Colantonio is also a founder and former president of Arkane Studios, which was acquired by Microsoft in its 2021 acquisition of Bethesda's parent company, ZeniMax Media. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Colantonio stressed that Xbox Game Pass has damaged the video game industry over the last decade and said it has done so due to Microsoft's near-infinite money it can pump into the service. He said the model can't 'co-exist with other models, they'll either kill everyone else, or give up.' Colantonio's post about Xbox Game Pass stirred up other developers who were critical of the model, including one from Larian Studios, the developer of Baldur's Gate 3 and the Divinity series. Publishing Director Michael Douse said Microsoft's infinite money plan never made sense. Microsoft Stock Movement and Analyst Updates Microsoft stock was down 0.55% on Tuesday, but is still up 17.89% year-to-date and 8.31% over the past 12 months. While criticism of Xbox Game Pass wasn't welcomed by shareholders, it's important to remember that Xbox is only a small part of Microsoft's business. Even so, the company likely won't want to lose money on Game Pass forever. If that happens for too long, it could turn investors against leadership. Michael Briest reiterated a Buy rating and $500 price target yesterday, only suggesting a 1% upside for the shares. Is Microsoft Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Microsoft is Strong Buy, based on 30 Buy and four Hold ratings over the past three months. With that comes an average MSFT stock price target of $524.86, representing a potential 6.03% upside for the shares.
Engadget
07-07-2025
- Entertainment
- Engadget
Arkane founder calls Game Pass an 'unsustainable model' that's wrecking the industry
Arkane Studios founder Raphael Colantonio had some harsh words for Game Pass in a thread on X, calling it an "unstainable model" that's "damaging the industry." He also said that Microsoft's ability to throw "infinite money" at the platform will eventually wane because "reality has to hit." Colantonio continued by saying Microsoft will "kill everyone else, or give up" and that gamers only like the service because "the offer is too good to be true." He also wrote that these same players will turn on the platform when "they realize the effects on the games," alluding that the Netflix-style approach allows for underwhelming titles. His remarks follow last week's major layoffs, in which Microsoft let go of over 9,000 people. Many of the impacted employees were involved with the company's gaming divisions and first-party developers. Halo Studios lost people, as did the Candy Crush maker King. Some studios were shuttered and a bunch of games were cancelled. It sucked. However, the general consensus is that Microsoft's continued investment in AI played a role in these layoffs, and not the existence of Game Pass. Colantonio says that AI's involvement "might be a BS excuse." While there's no evidence that the subscription-based catalog service contributed to the job cuts, there is some data that suggests Game Pass hurts the sales numbers of titles under its umbrella. This makes a certain amount of sense. AAA games are $70 and Game Pass is $10 to $20 per month. Anecdotally, I picked up a subscription to play Indiana Jones and the Great Circle instead of buying the game directly from Bethesda. Arkane Studios is the firm behind games like Deathloo p, Dishonored and Prey . The company's currently working on a game based on Marvel's resident vampire hunter Blade.
Metro
07-07-2025
- Entertainment
- Metro
Xbox Game Pass has been 'damaging the industry for a decade' says Arkane founder
The designer behind Dishonored has criticised Game Pass in the wake of sweeping Microsoft layoffs, describing it as an 'unsustainable model'. Microsoft's latest round of job cuts has led to studio closures and a slew of game cancellations, but one developer believes there's an unaddressed issue at the heart of the matter. In a post on X, Arkane Studios founder Raphaël Colantonio, who directed Dishonored and Prey before he left the studio in 2017, highlighted Xbox's subscription service Game Pass as the 'elephant in the room' following the layoffs last week. 'Why is no-one talking about the elephant in the room? Cough cough (Game Pass),' he wrote. When asked about his thoughts on the subscription service, Colantonio added: 'I think Game Pass is an unsustainable model that has been increasingly damaging the industry for a decade, subsidised by [Microsoft's] 'infinite money', but at some point reality has to hit. 'I don't think Game Pass can co-exist with other models, they'll either kill everyone else, or give up.' Colantonio, who has since co-founded developer WolfEye Studios, said he is 'fed up with all the BS [Xbox] fed us at first', regarding Game Pass supposedly not having any impact on normal sales, 'only to admit years later that it totally does'. Sign up to the GameCentral newsletter for a unique take on the week in gaming, alongside the latest reviews and more. Delivered to your inbox every Saturday morning. He added: 'It's a long game that involves throwing a tsunami at the entire ecosystem of the industry. Only the gamers like it, because the offer is too good to be true, but eventually even gamers will hate it when they realise the effects on the games.' 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. I don't think GP can co-exist with other models, they'll either kill everyone else, or give up. — Raphael Colantonio (@rafcolantonio) July 5, 2025 Microsoft Gaming CEO Phil Spencer claimed Game Pass was profitable during an interview in 2023, but based on available evidence (Microsoft stopped sharing Game Pass subscriber numbers in 2022), spending on the service has only marginally increased over recent years – despite price increases and the addition of Call Of Duty. More Trending While it's difficult to say whether this lack of growth is the root cause of Xbox studio closures over the past few years, Game Pass has become Xbox's key selling point in its shift towards a multiplatform publisher, so it's certainly a factor. Microsoft has claimed in the past that Game Pass helps boost game sales, but a document which emerged during the UK Competition and Market Authority's investigation into the company's acquisition of Activision Blizzard says otherwise. 'Microsoft also submitted that its internal analysis shows a [redacted]% decline in base game sales 12 months following their addition on Game Pass,' read the CMA report from 2023. Microsoft might be trying to avoid stating it outright, but It's clear Game Pass isn't working as well as it hoped. The big question is whether this is the sinking ship for Xbox, or something they can turn around. Email gamecentral@ leave a comment below, follow us on Twitter. To submit Inbox letters and Reader's Features more easily, without the need to send an email, just use our Submit Stuff page here. For more stories like this, check our Gaming page. MORE: Games Inbox: What is the best retro video game? MORE: Best new mobile games on iOS and Android – July 2025 round-up MORE: As an Xbox fan all I can say is that Microsoft betrayed us – Reader's Feature
Time of India
07-07-2025
- Business
- Time of India
'At some point reality has to hit,' says ex-Arkane founder Raphael Colantonio on Game Pass — 'this model just doesn't work long-term'
(Image via @saudigamer's 'X' Account) Raphael Colantonio, ex-Arkane Studios founder, has recently delivered a stark assessment of Xbox Game Pass. He suggested that the gaming giant's flagship subscription model harbors fundamental laws. His comments amidst the recent project cancellations and Microsoft layoffs point to long-term viability concerns that can reshape the industry landscape. He even hinted at the inevitable reckoning of the approach that's been championed by Microsoft. Raphael Colantonio issues stark warnings The ex-Arkane Studios founder didn't mince his words on Xbox Game Pass. He straightaway labelled it as an 'unsustainable model' that has been actively damaging the industry. As per his argument, this damage has been masked for many years by Microsoft's vast financial resources. He called it their 'infinite money' that's subsidizing it all and artificially propping up the service, but economics is not adding up for most publishers and developers. Making some bleak core predictions, he said, coexistence with the traditional sales models for Xbox Game Pass is impossible. As he contends, Game Pass faces a binary future. It would either dominate to the point of eliminating all competitors, or Microsoft would be forced to abandon it entirely. In his words, " At some point reality has to hit." Colantonio's comments put a lot of emphasis on the inherent long-term weakness of this model and show increased skepticism from the industry veterans. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 새로 나온 '실비보험', 합리적인 가격과 실속있는 보장으로 최적가 비교가입!... 굿리치 [등록번호:제2006038313호] 가입하기 Undo These veterans believe the subscription services can devalue games or destabilize the development budgets. Job cuts and corporate pressures create a ripple effect Colantonio's critique has emerged amidst the significant turmoil in Microsoft's gaming division. The recent months saw deeper cuts, including some high-profile project cancellations. Rare's Everwild and Initiative's 'Perfect Dark' reboot, apart from studio closures, as per him, these actions were not isolated incidents. Journalists Tom Warren and Jez Corden have reported that these stemmed from intense financial pressure. As per reports, Microsoft's CFO Amy Hood recently set some aggressive and potentially unrealistic targets for Xbox. As noted, the pressure intensified quite significantly, following Activision Blizzard's massive acquisition. The sheer cost of the deal, together with Game Pass investments trying to be profitable, has created a challenging new financial reality. Further compounding the struggles of Xbox is Microsoft's strategic pivot. $80 billion, a very significant resource, has been redirected to generative AI, a priority that's been championed by CEO Satya Nadella and Hood. Such a shift within investment focus, completely away from gaming, has further squeezed the operating environment of Xbox, putting it in a precarious position, with further turbulence expected ahead. Gaming Industry concerns for Xbox Game Pass are rising Colantonio is not alone with his skepticism. Even Michael Douse, the Publishing Director at Baldur's Gate 3 developer Larian Studios, has echoed the concern about sustainability. He did highlight a widespread industry question— "What happens when all that money runs out?" The fear now deters many publishers from completely embracing the model of Game Pass. Both Colantonio and Douse are seeing a potential compromise being made. As per their suggestion, subscription services can find a sustainable niche, keeping the primary focus on back catalogue titles, which are older games that are beyond the initial sales peak. As per their argument, launching major new releases on day one of subscription undercuts traditional sales. It creates unsustainable economics for most publishers and developers not named Microsoft. Can Xbox Game Pass survive without hurting the industry? Future of Xbox Game Pass now remains a pivotal question. As Microsoft continues to balance colossal investments, shifting AI focus and corporate expectations, the viability of the subscription cornerstone does face its sternest test. The warning of Colantonio for now serves as a potent reminder that even all that infinite money cannot defy economic reality forever. Despite all warnings, Microsoft is pushing Game Pass, banking upon subscriber growth. Yet, with no clear path to profitability and high skepticism from industry, subscription gaming's future remains uncertain. To wrap up, Colantonio's critique puts forward an important question: Is Xbox Game Pass sustainable?, or is it a bubble that has been waiting to burst?' With Microsoft trying to navigate financial pressures and has been facing a lot of industry backlash, the next few years ahead could determine whether subscription gaming will collapse under its own weight or thrive. Game On Season 1 continues with Mirabai Chanu's inspiring story. Watch Episode 2 here.
Yahoo
05-06-2025
- Yahoo
Man sentenced to prison for racially motivated arson at North Providence church
NORTH PROVIDENCE, R.I. (WPRI) — A man will spend more than six years in federal prison for intentionally igniting multiple fires at a North Providence church with a predominantly Black congregation last year. Kevin Colantonio, 36, was sentenced Thursday to 78 months, followed by three years of supervised release. He previously pleaded guilty to to malicious damage by means of fire, obstruction of free exercise of religious beliefs, and two counts of assault on a federal officer. In federal court, Colantonio admitted that on Feb. 11, 2024, he used gasoline and a lighter to set five fires outside Shiloh Gospel Temple Ministries. The next day, he texted a family member saying that no one cared about the arson and called the church 'Atheist God mockers.' IN-DEPTH: Arson suspect admits to setting fires at North Providence church During a search, police discovered notebooks containing concerning language such as 'Eliminate Rich Snob global Elite Pastors, burn churches down to ground' and 'hunt them down gun everyone down that isn't white, if one is white spread the gospel. Always give our bloodline a chance.' He also admitted to assaulting two federal correctional officers at the Donald W. Wyatt Detention Facility, where he threw a mug containing bodily waste and fluids at them. RELATED: Arson suspect accused of throwing cup of feces, bodily fluids at correctional officers Download the and apps to get breaking news and weather alerts. Watch or with the new . Follow us on social media: Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
