Earlier today, we found out that Moon Studios--makers of the renowned Ori games--is reportedly an "oppressive" place to work. That’s largely due to the studio’s co-founders, Thomas Mahler and Gennadiy Korol, who allegedly created a toxic work environment thanks to unprofessional public chatrooms. According to interviews with current and former employees and screencaps, Mahler and Korol would joke about their penis size, “killing Jews,” and be openly critical of employees while withholding praise for a job well done.

The VentureBeat report also claims that crunch conditions were pervasive alongside this toxic behavior from the studio founders, leading to mental health problems, burnout, and high employee turnover.

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Now we’re finding out that these allegations of a toxic work environment not only cost Moon Studios its employees but also the studio itself. In the latest episode of Game Mess with Jeff Grubb and Mike Minotti, Grubb said that sources told him that Microsoft was aware of the issues within Moon Studios and decided not to publish its next game after Ori and the Will of the Wisps.

Ori And The Will Of The Wisps gameplay screenshot

"It's not like this culture is like something that is contained,” said Grubb. “Microsoft is well aware of what this company is like, and when they got done with Ori 2 there is a reason that Private Division is publishing their next game and not Microsoft.”

Moon Studios' next game is described as a 3D action RPG that’s significantly darker in tone than Ori. Take-Two’s Private Division will be publishing this game after Microsoft apparently decided that Moon Studios’ reported toxic culture was too great of a liability.

“I was told this explicitly this morning, that Microsoft was aware and everyone understood that's what this company is like. And so, it's clearly not the kind of thing where it's like ‘Oh, this is just a couple of jokes happening on Discord.’ This studio had a reputation, and it was hurting them financially because they had to take a deal with Private Division instead of another big deal with Microsoft and that affects everyone at that company,” Grubb added.

Microsoft’s decision to split with Moon Studios was likely a wise one, given how the tech giant’s own efforts to improve after accusations of sexist business practices. Microsoft also has its work cut out for it mending Activision’s notoriously toxic work culture, something that even threatening the jobs of Acti Blizz executives might not fix.

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