Ex-Forza Horizon Director Links Game Pass's Failure to Xbox Layoffs

As Xbox undergoes a major restructuring, former Forza Horizon creative director Mike Brown has weighed in, attributing the recent layoffs, studio closures, and game cancellations to Game Pass's inability to attract enough subscribers to justify Microsoft's massive content investments.

Xbox CEO Asha Sharma has already laid off 1,600 employees, with plans for another 1,600 cuts this fiscal year. Four studios have left Microsoft, with more expected. Sharma described this as the most significant restructuring in Xbox history, admitting the gaming business "is not healthy."

Speaking on MinnMax, Brown—who left Playground Games to found Maverick Games, which is developing an open-world racer called Clutch—said Game Pass failed to hit subscriber targets needed to make Microsoft's spending viable, including the $69 billion Activision Blizzard acquisition.

"It's really sad and unfortunate," Brown said. "They invested a fortune in Game Pass as a service, leading to acquisitions, funded games, and jobs. But not enough people subscribed at the required prices. Now we're seeing studios shut down or spun off, and people losing jobs. It's the result of a well-meaning, player-focused concept not quite landing."

Brown defended Game Pass's concept, calling it a good idea that enabled games that might not otherwise exist. However, he noted that subscriber numbers never reached the level needed to justify the Activision Blizzard deal.

Sharma echoed this, admitting Game Pass growth fell short of expectations. "Our business is not healthy," she said. "We bet on Game Pass, multi-platform, and broader content, but those didn't grow as expected. Now we must reset Xbox."

The Wall Street Journal reported Microsoft expected 77 million Game Pass subscribers this year, but it has only about 30 million. During the FTC vs Microsoft trial, Microsoft hoped for 100 million by 2030, which now seems unlikely. As of February 2024, Game Pass had at least 34 million members. By July 2025, revenue reached nearly $5 billion for the first time.

After replacing Phil Spencer, Sharma cut Game Pass prices and removed Call of Duty as a day-one title. She told Bloomberg that Game Pass "returned to growth and expanding retention" after an eight-month decline.

Questions remain: Will Microsoft pull day-one launches from Game Pass? Will The Elder Scrolls 6 or the next Halo launch day one? Could Game Pass become more like PlayStation Plus? Meanwhile, Microsoft is doubling down on its biggest franchises, promising more Fallout content faster.