Ori Dev CEO Says Xbox Was Too Focused On Protecting Its Legacy To Build Its Future
Xbox Game Studios is undergoing significant structural changes following leadership transitions, with recent studio closures and layoffs marking a major shift in the company’s gaming strategy. Thomas Mahler, CEO of Moon Studios (developer of the acclaimed Ori series), has publicly criticized Xbox leadership for prioritizing established franchises over developing new intellectual property and nurturing emerging developers.
According to Mahler’s assessment, Xbox’s strategic missteps began years ago when the company became overly focused on protecting and leveraging legacy properties rather than investing in innovative new games and supporting developers. This conservative approach, he argues, ultimately hampered the company’s ability to compete in an evolving gaming landscape.
The recent turmoil has accelerated under new Xbox CEO Asha Sharma, who has implemented a comprehensive “reset” strategy. As part of this restructuring, multiple first-party studios are facing closure or significant workforce reductions. Notably, Ninja Theory—developer of the Hellblade franchise—was shuttered shortly after unveiling a new project at Xbox’s Games Showcase. Double Fine and other studios are currently negotiating with Xbox management to avoid closure.
Despite the current upheaval and what Mahler describes as “heartbreaking” changes, he believes the restructuring will ultimately prove beneficial for Xbox’s long-term direction. His comments highlight broader industry concerns about innovation versus risk management, suggesting that Xbox’s historical reluctance to embrace new creative directions may have contributed to its competitive challenges.