Ex-PlayStation Boss: Game Pass Profits 'Impossible' for Devs

Former PlayStation executive Shawn Layden says developers can't profit from subscription services like Xbox Game Pass, especially with day-one launches. He argues the model only benefits the platform, not creators.

Ever wonder if your favorite indie dev is actually making bank when their game hits Game Pass? According to former PlayStation boss Shawn Layden, the answer is probably no.

Layden, who led PlayStation through the PS4's golden years, recently appeared on The Expansion Pass podcast and didn't hold back. He said that for Game Pass to be profitable, you'd need something like 500 million subscribers — a number he admits was hyperbole, but "turns out, it wasn't that wrong?" And while Microsoft might be raking it in, he compares the situation to a casino: "The house always wins, right?"

The core issue, Layden explains, is that developers hope to blow past their break-even point and start earning royalties. But in a subscription model, "that's just impossible to do." The platform can profit, but the creators behind the games? Not so much.

Of course, not everyone agrees. A few years back, several indie devs actually praised Game Pass. Thomas Sala, the solo developer behind The Falconeer, called getting signed "generally a very positive thing." And Gareth Damian Martin, lead on Citizen Sleeper, said the service made a sequel possible. So for smaller teams, it's not all doom and gloom.

But when it comes to big-budget AAA games, the math gets messier. Layden points out that a $69.99 game has "one chance to bust out and break through." Subscription services, he argues, conflict with that model. PlayStation chose not to put its AAA games on its service day one; Microsoft did. "You can judge the outcome on your own," he says.

Layden also thinks Xbox is "in a pickle" because "Microsoft never really picked a lane." That's a pretty blunt take from someone who knows the console wars inside out.

So what does this mean for you? If you're a Game Pass subscriber, you're getting a great deal — tons of games for one monthly fee. But if you're a developer hoping to turn a profit, the picture looks a lot less rosy. The debate over subscription services isn't going away anytime soon.

What do you think? Is Game Pass sustainable for developers, or is Layden right that it's a losing game?