Thomas Mahler, the director behind the critically acclaimed 'Ori and the Blind Forest' and its sequel, has voiced strong criticism regarding the quality of games available on Xbox Game Pass. His comments follow widespread reports that several Microsoft-owned gaming studios are facing potential closure, prompting a debate within the industry about the viability of Xbox's subscription-based strategy.
Earlier this month, Xbox CEO Asha Sharma disclosed in an open letter that Microsoft had invested over £16 billion (approximately $20 billion) in content, platform, and hardware subsidies over the past five years. Despite this substantial outlay, the company's annual revenue for Xbox had declined by nearly £400 million during the same period. Sharma stated that this trend was unsustainable, indicating a need for a significant business 'reset' to improve financial performance.
Mahler specifically targeted the content on Game Pass, asserting that the strategy 'could've worked if people would've shown up for it'. He attributed the lack of sustained subscriber engagement to a software catalogue that was 'nowhere near good enough to make people happily pay the subscription every month'. Drawing a parallel with the film streaming industry, Mahler suggested that Microsoft had failed to produce 'smash hits, cultural events that everyone wants to play', which he believes are essential for retaining subscribers.
His critique extended to the incentives provided to developers. Mahler argued that the Xbox team needs to better discern between 'good game and what's a mediocre game' and establish 'good deals with devs' that actively encourage the creation of 'massive hits' rather than 'slop out mediocre content like a factory'. He emphasised that without strong incentives for developers to 'roll up their sleeves and go the extra mile', quality would suffer, ultimately leading to the strategy's collapse.
This situation highlights broader economic pressures within the gaming industry, where development costs are escalating, and the subscription model's profitability is under scrutiny. While some analysts point to games failing to generate sufficient profit against ballooning development budgets, others, like 3D Realms founder George Broussard, place the blame on Xbox management for potentially over-acquiring studios to feed Game Pass without adequate oversight. According to Sharma, Game Pass experienced eight months of decline after a significant price hike in late 2025, though a subsequent price cut has seen membership numbers begin to rise again.