Earlier this week, thousands of Xbox employees were shown the door — a brutal wave of layoffs that echoed through the industry like a bad omen. Phil Spencer, the face of Xbox, insisted everything was fine. On paper, it might be. Microsoft’s acquisition of Activision-Blizzard artificially inflates its numbers. But the layoffs reopened a haunting question: is the Xbox Game Pass truly sustainable?

Industry veterans like Raphaël Colantonio (formerly of Arkane, now at WolfEye Studios) don’t think so. “The model only works thanks to Microsoft’s endless pockets,” he argues. “It’s hurting the industry more than helping. And one day, even gamers will hate it.”

Michael Douse of Larian Studios (Baldur’s Gate III) echoed similar concerns, citing how the illusion of “infinite money” has discouraged serious investment in long-term development. “Everyone’s wondering: what happens when the money runs dry?”

Right now, Xbox Game Pass is still riding high, expanding into other platforms and continuing to lure users with its too-good-to-be-true offers. But with trust eroding and financial viability in question, Microsoft may soon face its most difficult level yet.