Moon Studios, the developer behind the critically-acclaimed Ori and the Will of the Wisps, as well as Ori and the Blind Forest, recently came under the spotlight, not because of its upcoming third game, but instead because of allegations of being a toxic workplace. It has now been revealed that Microsoft, which served as the publisher behind both of the Ori games, was already aware of the situation even before it was brought up to the public.

Founded in 2010 by Thomas Mahler and Gennadiy Korol, Moon Studios, so far, has only shipped two games, even though both can be considered quite successful. The first one, Ori and the Blind Forest, won the title "Xbox Game of the Year" at the 2015 Golden Joystick Awards. This was followed by a direct sequel, Ori and the Will of the Wisps, which also won the same commendation at the 2020 Golden Joystick Awards, not to mention many other prestigious accolades in the following year. The studio is currently working on its third game, an action RPG that is set to be published by Private Division.

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Moon Studios' decision to switch publishers was never explained before, but now it has been reported that it had something to do with the recent allegations first reported by GamesBeat. Via Twitter, Windows Central's journalist Jez Corden confirmed the report right away and added that both Moon Studios' co-founders "resorted to personal attacks/bullying towards Xbox's teams," resulting in the end of their partnership with Microsoft.

This was also corroborated by GamesBeat's journalist, Jeff Grubb, on a recent episode of the GamesBeat Decides podcast. Microsoft reportedly is well aware of what the situation in Moon Studios is like and decided that Ori and the Will of the Wisps would become the last game that the two companies worked on together. As a result, Moon Studios had to take a smaller deal with Take Two's Private Division, and this was said to hurt the company financially, which in turn affects everyone at the company.

This latest development has the potential to put Moon Studios even further from vindication. While the co-founders have responded through an official statement and there haven't been any lawsuits, the recent unionization trend shows that there is a greater call for video game companies to move in the right direction, especially given the ever-growing list of abusive work cultures within the gaming industry.

Whether the accusation will get deescalated soon remains to be seen. Some might argue that this might be one of the reasons why the studio hasn't been bought by Microsoft, even though the two companies had worked together for quite a long time.

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