Moon Studios’ chief executive criticized Microsoft’s Xbox Game Pass strategy, arguing that the subscription model has struggled because of quality issues in its software catalog. The remark serves as a rare piece of industry criticism of the service and is especially notable because it originates from a studio that previously worked with Microsoft and is intensely familiar with the Xbox Game Pass ecosystem.
According to several reports that surfaced online in late spring, Xbox is planning another round of “significant” layoffs for July 2026. The planned workforce reductions, which are expected to affect much of Microsoft’s gaming business, have prompted widespread industry discussion. Thomas Mahler, CEO and creative director of Ori developer Moon Studios, has been among the established industry figures weighing in on the situation throughout June 2026, expressing sympathy for those who may be affected while offering his views on the broader circumstances that led to this point.
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In a recent social media post, Mahler argued that Xbox Game Pass “could’ve worked” had it attracted a large enough base of regular users. In his view, that did not happen because Microsoft’s content catalog has not been strong enough to convince many consumers to keep paying a monthly fee. He compared the service to film and television streaming, arguing that users are willing to maintain subscriptions when a platform offers a deep library of high-quality programming. Games present a different challenge, Mahler said, because new releases carry more weight with players than they do with many TV streaming audiences. That makes it harder for a subscription service to rely on older titles unless its latest additions are consistently strong. Although Xbox Game Pass has added new titles at an unprecedented pace throughout the first half of 2026, Mahler does not appear to believe most of those releases have meaningfully shifted the service’s value proposition.
In a conventional subscription model, flagship first-party content would be expected to set the standard for the rest of the catalog. In Mahler’s view, Xbox Game Pass has fallen short, with the industry veteran arguing that Microsoft’s studios have not produced enough standout releases in recent years. He pointed to Bethesda’s Starfield as one example of a major Xbox-owned release that failed to meet quality expectations.
Mahler Warns Against Slop Content
Mahler also argued that Microsoft would need stronger developer incentives and a clearer understanding of what players want for Xbox Game Pass to reach its potential. He warned that the service could not succeed if it encouraged studios to “slop out mediocre content like a factory,” rather than produce games compelling enough to make players feel they were missing out by not subscribing.
Mahler’s criticism is particularly notable because it comes from someone with ties to Microsoft. Ori and the Blind Forest and Ori and the Will of the Wisps were both published by Xbox Game Studios and are permanent members of the Xbox Game Pass catalog. The two metroidvanias are also among the most critically acclaimed Xbox-published titles from the past two console generations. “I always secretly hoped that Microsoft would see the value in what we delivered, that they’d selfishly turn Ori into their Mickey Mouse or a Mario’esque mascot,” Mahler wrote earlier in June, when he described the upcoming Xbox layoffs as “heartbreaking” news.
- Released
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March 11, 2020
- ESRB
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E For Everyone due to Mild Fantasy, Violence
- Developer(s)
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Moon Studios
- Publisher(s)
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Xbox Game Studios
