Alex Hutchinson, the developer at Raccoon Logic, has expressed concerns regarding the impact of Xbox Game Pass on the video game industry. He argues that the subscription service devalues content, ultimately hurting revenue across the industry. Hutchinson’s studio is known for its game, Revenge of the Savage Planet, which was released in May 2025 and made available on Xbox Game Pass on its launch day. The discussion about the merits and drawbacks of Microsoft’s gaming subscription model has been polarizing.
Many developers, industry analysts, and even former Sony Interactive CEO, Jim Ryan, have labeled Xbox Game Pass as “destructive.” Ryan pointed out that the general consensus among publishers is negative, and analyst Mat Piscatella has suggested that neither Xbox Game Pass nor PlayStation Plus represents the future of gaming. Despite the initial cash influx from the Game Pass deal, Hutchinson revealed that it has hurt overall sales and revenue. He had anticipated that making the game available to subscribers on launch day would encourage additional purchases, such as downloadable content (DLC).
However, the anticipated interest in DLC, such as The Cosmic Hoarder Upgrade priced at $9.99, has not materialized as hoped. Hutchinson also highlighted the long-term consequences of the Game Pass model for developers. While the financial support from Microsoft helped with development, ongoing sales have not been sufficient to sustain the studio. He believes that the model could contribute to the closure of studios and a reduction in game production, as players may undervalue content they perceive as “free.”
Hutchinson advocates for a shift in the industry, suggesting that games should be added to subscription services only after a year—similar to the staggered release model in the film industry. Although this sentiment was once echoed by former PlayStation chief Shuhei Yoshida, recent developments show that PlayStation is also now including day-one titles in its subscription service, complicating the path forward for this approach.