Moon Studios CEO Says Stronger First-Party Games Were Needed to Drive Subscription Growth
The head of the studio behind the acclaimed Ori series has criticised Microsoft’s approach to Xbox Game Pass, arguing that the subscription service could have achieved far greater success if the company had delivered more standout games and avoided encouraging the production of average-quality titles.
The comments come at a sensitive time for Microsoft’s gaming division. Reports this week suggested the company is considering significant restructuring measures, including potential closures of several studios acquired during its major expansion of the Xbox ecosystem.
Game Pass Under Renewed Pressure
Xbox Game Pass has long been central to Microsoft’s gaming strategy, offering subscribers access to a large library of titles for a monthly fee. However, questions about the service’s long-term growth have resurfaced amid reports of possible cuts affecting studios such as Double Fine, Compulsion Games and Ninja Theory.
The most recent official subscriber figure for Game Pass remains 34 million, a number Microsoft disclosed in February 2024. Industry observers believe growth has slowed since then, and Xbox has previously acknowledged that a price increase introduced last year resulted in the loss of millions of subscribers over a relatively short period.
Against that backdrop, Moon Studios chief executive Thomas Mahler suggested the service’s challenges stem from a lack of must-play games capable of attracting and retaining subscribers.
Thomas Mahler: Catalogue Quality Was Not Strong Enough
Writing on X, Mahler responded to comments from 3D Realms founder George Broussard, who questioned whether Microsoft had acquired too many studios in an effort to supply content for Game Pass.
According to Mahler, the subscription model itself was not necessarily flawed.
“The Game Pass strategy could’ve worked if people would’ve shown up for it,” he wrote.
He argued that the software catalogue ultimately failed to provide enough compelling content to convince players to maintain their subscriptions month after month.
Drawing comparisons with television streaming services, Mahler pointed to premium content as the key factor behind successful subscriptions.
“I’ll happily pay my HBO sub because HBO has amazing content that I want to watch,” he said, citing series such as The Sopranos, The Wire and Game of Thrones as examples of programmes that encourage long-term loyalty.
Mahler added that video game audiences place a particularly high value on new releases, making it essential for subscription platforms to consistently offer high-quality launches.
Criticism of Microsoft’s First-Party Output
The Moon Studios executive argued that Microsoft’s first-party studios have struggled to produce enough major hits in recent years.
He questioned whether Xbox had delivered a defining title capable of generating widespread enthusiasm among players and suggested many of Microsoft’s internal studios had failed to meet expectations.
Mahler singled out Bethesda’s space RPG Starfield, saying many players had hoped for a game that would build upon the success of The Elder Scrolls V: Skyrim but felt the final product fell short of those ambitions.
According to Mahler, the broader issue is that platform holders need a deep understanding of what players want and must create incentives that reward developers for producing exceptional games rather than simply meeting content quotas.
Concerns Over Developer Incentives
Mahler also argued that the Game Pass model may not sufficiently encourage studios to go beyond minimum expectations.
In one of his more controversial remarks, he compared aspects of the system to communism, claiming it did not provide developers with a strong enough incentive to “go the extra mile”.
He suggested that subscription services ultimately depend on delivering content of such a high standard that consumers feel they would miss out by not subscribing.
Without that level of quality, he argued, retaining subscribers becomes increasingly difficult.
Microsoft’s Recent Publishing Performance
Despite Mahler’s criticism, Microsoft’s publishing results have not been uniformly negative.
According to Metacritic’s annual publisher rankings, Microsoft finished as the fifth-highest-rated publisher in 2025 based on aggregate review scores. Bethesda placed eighth in 2024.
Microsoft did not appear in the top ten rankings during 2022 or 2023. However, the company secured the top position in 2021 thanks to the strong performance of titles including Forza Horizon 5, Psychonauts 2 and Microsoft Flight Simulator.
Debate Over Xbox’s Future Continues
Mahler’s comments are likely to add fuel to an ongoing industry debate over the sustainability of gaming subscription services. While Game Pass remains one of the most influential products in the sector, questions persist over whether a subscription model can continue to thrive without a steady flow of major exclusive releases.
As Microsoft evaluates the future of its gaming business, the balance between studio investment, subscriber growth and blockbuster game development is likely to remain under close scrutiny from both players and industry leaders.
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