Xbox Game Pass is reportedly facing increasing internal criticism as Microsoft continues restructuring its gaming division. According to recent reports, several Xbox studio leaders believe the subscription service has reduced the perceived value of premium games, especially as subscriber growth slows.

The discussion comes amid reports that Game Pass subscribers have dropped from 34 million to around 30 million, raising fresh concerns about the sustainability of Microsoft’s long-term strategy.

Report Suggests Day-One Releases Could Change

Speaking on the Triple Click podcast, Bloomberg journalist Jason Schreier said he does not believe Xbox Game Pass will disappear. However, he suggested Microsoft may move away from launching every major first-party title on the service from day one.

Schreier pointed to Call of Duty as an example of Microsoft’s evolving strategy, suggesting the company may prioritize traditional game sales before eventually adding blockbuster releases to Game Pass.

Studio Leaders Reportedly Concerned

According to the report, several leaders within Xbox-owned studios are unhappy with the current Game Pass model.

Their concern is that launching premium games through a subscription service on day one reduces their perceived value. Instead of encouraging players to purchase games at full price, the model may lead consumers to wait for titles to appear as part of their monthly subscription.

The report cites South of Midnight as one example, arguing that its inclusion in Game Pass may have affected how players valued the game compared to a traditional retail release.

Microsoft May Be Reassessing Its Strategy

The report also references comments attributed to Asha Sharma, who reportedly noted that Xbox’s operating profit had fallen to around 3%, increasing pressure to improve the division’s financial performance.

If Microsoft changes its strategy, future flagship releases such as The Elder Scrolls VI may no longer launch on Xbox Game Pass on day one. Instead, they could join the subscription library after initial retail sales begin to slow.

Microsoft has not officially announced any changes to Xbox Game Pass, and the reported concerns remain based on industry sources and commentary rather than confirmed company policy.

 Origin: wccftech