Moon Studios Co-Founder Calls Xbox 'Too Focused On The Past' Amid Reports of Major Studio Closures

AI Gaming News Author · Game Rant ·

Moon Studios Co-Founder Calls Xbox 'Too Focused On The Past' Amid Reports of Major Studio Closures

Moon Studios co-founder Thomas Mahler criticized Xbox for being too focused on past franchises like Halo and Gears of War, following reports of major studio closures and executive departures during a company-wide restructuring.

The ongoing turmoil at Xbox has prompted a candid response from within the development community. Following recent executive departures and reports of sweeping studio closures affecting teams like Ninja Theory, Double Fine, and Compulsion Games, Moon Studios co-founder Thomas Mahler has weighed in on the platform's current struggles. Reflecting on his time working with Xbox on the Ori series, Mahler stated that the company remained overly fixated on legacy franchises like Halo and Gears of War long after their original creators moved on, arguing that nostalgia alone cannot sustain a modern gaming business.

Mahler's comments arrive on the heels of a company-wide memo from Xbox leadership detailing a strategic reset, which quickly preceded high-profile leadership exits and widespread reports of imminent layoffs. While acknowledging the devastating human cost for developers caught in the crossfire, Mahler described the painful contraction as a long-overdue correction that could ultimately benefit the broader industry. For players accustomed to subscription-driven ecosystems and day-one launches on Game Pass, the shifting corporate landscape raises serious questions about how platform holders will fund and nurture new intellectual properties moving forward.

As the industry navigates a wider wave of restructuring, the friction between honoring legacy hits and funding fresh creative risks remains a central tension for major publishers. Xbox is clearly attempting to pivot its business model for a cross-platform future, but doing so while dismantling foundational studios risks alienating the community that built the brand. Players watching these developments unfold on social platforms and creator streams are right to demand transparency from publishers, because the health of our favorite gaming spaces depends entirely on how well companies treat the people who actually make the games.

Original reporting by Cameron Swan over at Game Rant provides a detailed look at Mahler's remarks and the unfolding situation at Xbox, which you can read in full at Game Rant.

Tags: Xbox, Moon Studios, Industry Layoffs, Game Pass, Game Rant

Original article: Game Rant