Earlier this week, the gaming community was rocked by Microsoft’s announcement of the closure of three prominent studios: Arkane Austin, Tango Gameworks, and Alpha Dog Studio. This news understandably upset many. However, it appears this is just the beginning, as Microsoft is reportedly planning further layoffs as part of ongoing restructuring efforts within Xbox.
According to Bloomberg’s Jason Schreier, Xbox’s cost-cutting measures are not yet complete. Xbox has offered voluntary severance agreements to producers, QA testers, and other ZeniMax staff, with more layoffs expected. This is particularly surprising given that Xbox acquired ZeniMax, the parent company behind studios responsible for games like Starfield, Fallout, and Dishonored, for $7.5 billion in 2020.
In addition to the studio closures, further details emerged from a town hall meeting where Xbox president Matt Booty addressed the situation. He explained that the decision to close the three studios was due to understaffing, with leadership opting to reallocate resources to other projects.
Contrary to speculation, these decisions were not influenced by the performance of recent games like Hi-Fi Rush or the less successful Redfall. Jill Braff, head of ZeniMax Studios, stated that this reorganization will enable ZeniMax to focus more effectively on a smaller number of projects.
According to Schreier’s sources, both Arkane Austin and Tango Gameworks were actively seeking to expand their teams and pitching new game ideas to management. If true, this makes the news of the layoffs even more disheartening.
The recent news surrounding Xbox’s decision-making is certainly puzzling, regardless of personal feelings. On one hand, Xbox executives have been effusive in their praise for games like Hi-Fi Rush and have expressed commitment to titles like Redfall. On the other hand, we’ve witnessed studio closures despite reports that these studios were actively seeking to expand their teams and pitch new projects—a scenario that should have excited Xbox executives.
The acquisition of ZeniMax and its studios was supposed to bolster Xbox’s gaming division and deliver unforgettable experiences to gamers. So, the question arises: who stands to benefit from these layoffs and studio closures? Only Xbox can provide answers to these queries .Let me know in the comments below!
