Former PlayStation Studios chairman Shawn Layden described the future of Xbox Game Pass as having a 'grim prognosis' on LinkedIn. His comments follow signals from Xbox head Asha Sharma that the subscription service is too expensive and requires an overhaul. Microsoft has not updated subscriber figures since reporting 34 million paying users two years ago.
Shawn Layden, ex-chairman of PlayStation Studios, posted on LinkedIn that Microsoft is 'trying so hard to will this into health, despite unfavorable diagnostics and a grim prognosis.' He suggested a 'clarifying post mortem' would benefit the industry. The remarks, first noted by Respawn First, come amid concerns over Game Pass sustainability raised by Xbox leadership including Asha Sharma. Microsoft last shared metrics in 2024, stating 34 million paying subscribers, with no updates since then. Layden previously told GamesIndustry.biz he opposes the 'Netflix of gaming' model, comparing it to Spotify's impact on music sales where 'virtually no one buys music anymore.' Game Pass divides opinions in the industry. Some developers view it as a lifeline for niche projects, while critics argue it devalues games by training players not to pay full price. Microsoft insists the service is profitable, though questions persist about funding first-party studios and external titles amid rising budgets. For instance, Microsoft fully funded the seven-figure development of co-op dungeon brawler Awaysis exclusively for perpetual Game Pass availability, according to Game File. Game designer Jake Kazdal noted Microsoft created a dedicated funding group for it. Former Xbox staff, including Bethesda marketing VP Pete Hines, have highlighted tensions: without balancing service needs and content creators, subscriptions risk failure. Challenges include high costs, such as $60 million for a year of Red Dead Redemption 2 per former Xbox executive Sarah Bond, and nearly $1 billion for Call of Duty: Black Ops 7 development and marketing. Microsoft once projected 110 million subscribers by 2030 but now explores tiered pricing and delayed day-one releases.
