This comes as a follow-up to a previous report that "lost" revenue from first-party titles on the service isn't considered.
With the money that is usually spent by Microsoft on third-party titles on Xbox Game Pass, the service has been profitable.
These requirements will reportedly continue hurting the company's Gaming division, which recently faced extensive layoffs.
Raphael Colantonio says the model has been "increasingly damaging the industry for a decade, subsidized by Microsoft's 'infinite money.'"
There's reportedly always been "outside interest" in revisiting the Banjo-Kazooie franchise but Rare was more interested in new IPs.
From the reported death of the Forza Motorsport franchise to the closure of Romero Games, the impact is even worse than expected.
Predictably, the post has since been taken down by its author because of the amount of backlash it got for suggesting the use of AI.
Reports indicate that the simulation-styled racing franchise has been cancelled along with Turn 10's getting hit by massive cuts.
The Death Stranding 2 director's horror title allegedly sought a new publisher after Microsoft's recent wave of layoffs.
Xbox Game Studios head Matt Booty had to reportedly pull the controller away from Spencer when he tried an early build in March.
Xbox’s once bold vision for the future now feels uncertain as layoffs and major project cancellations shake gamers' confidence.
Phil Spencer, who originally took on leadership of the Xbox division back in 2014, apparently has no plans to retire for now.
Several game studios under Microsoft are seeing a shake-up, including Rare, where veteran designers have allegedly departed.
One employee noted that Phil Spencer's email announcing the lay-offs also bragging about Xbox profits led to them being "super pissed".
In an internal email, Xbox's Matt Booty said the layoffs and project cancellations represent "a broader effort to adjust priorities."
Raven Software and Sledgehammer Games, known for their work on the Call of Duty series, have also reportedly faced layoffs.
The extent of the layoffs is unknown, but meetings for the studio's employees are allegedly showing up "on a rolling basis."
Joanna Dark's long-awaited return may have been canned as part of Microsoft's recent wave of layoffs and project cancellations.
The project has reportedly been in development for almost a decade with Phil Spencer even recently claiming that it was progressing.
King and ZeniMax Media will reportedly face cuts, but the full extent of the damage to Microsoft Gaming as a whole is unknown.
