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Like Game Pass was meant to be for games like Hellblade, Psychonauts 2, etc.

It was literally pitched to creatives this way, they even said Game Pass would help keep studios alive who don't necessarily have big commercial successes but do make quality creative projects, Game Pass was meant to stop these closures and provide a safety blanket.

It hasn't. It has failed in that goal. So now any studio which relied on Game Pass is at risk (Ninja Theory, Double Fine, Compulsion Games, etc.)

Matt's statement was frankly awful and now has people rightfully thinking multiple studios will close and his comments have basically spat over the Game Pass model so much so that it makes me wonder again if Game Pass will exist in the distant future or if it will get major changes.

Matt's comments basically say Game Pass model has failed for being a safety blanket to creative/smaller projects.