Moon Studios CEO blames weak exclusives for Game Pass woes

The CEO of Moon Studios, developer of the critically acclaimed Ori games, has publicly criticized Microsoft's Xbox Game Pass strategy, arguing that a lack of high-quality exclusive games has prevented the subscription service from reaching its full potential. Thomas Mahler made the comments in a series of social media posts this week, as industry reports indicate Microsoft is preparing for significant layoffs and potential studio closures following the end of its fiscal year on June 30.

Mahler stated that the Game Pass model could have succeeded if it had consistently attracted a dedicated subscriber base. He attributed the service's struggles to a software catalog he described as insufficient to convince players to maintain a monthly payment. Comparing it to video streaming, Mahler noted that while he would keep a subscription for a service like HBO due to its high-quality programming, new releases carry disproportionate weight for gamers. He argued that Xbox has not delivered the "smash hits" or "cultural events" needed to drive subscriptions.

The core issue, according to Mahler, is that Microsoft's first-party studios have largely "been floundering" in recent years. He cited...