- Xbox has recently closed four of its studios.
- These measures appear to have been part of a major restructuring plan from Xbox.
- The publisher is expected to cut costs further in July, leading to more layoffs and studio closures.
2024 has not been great so far for Microsoft since it has been criticized for shutting down creative studios like Tango Gameworks, Arkane Austin, and more. Even before that, the publisher laid off around 2,000 employees.
Though many were hoping that Microsoft would put a pause on this current trend, it has been reported that Xbox will go through further restructuring in the coming months.
Why it matters: Microsoft’s layoffs have led to a lack of trust and frustration among developers and fans. The gaming giant promised to provide security for its acquired developers but seems to be failing at keeping its word.
During the latest episode of First Ring Daily, Brad Sams talked about Microsoft’s recent studio closures, stating that the fiscal year ends in 60 days, and before the new fiscal year starts, more shuffling is expected.
While Paul noted that Microsoft has already done enough, Brad Sams was quick to counter and said that this is far from the end.
There will be continued shuffling in, roughly, the July timeframe.
-Brad Sams
Similar reports came from Bloomberg earlier this week. Sources reported that Xbox had plans to cut costs further.
It seems all of this is happening because of the Activision Blizzard merger. The Bloomberg report clarified that executives are now scrutinizing Microsoft’s gaming division more than usual since they anticipate a bigger return on the massive $70 billion investment.
While nothing specific has been said, this restructuring is likely to cause further layoffs, as seen in Embracer Group’s case. Xbox may also resort to studio closure again, but we hope it does not come to that.
With recent releases like Hellblade 2 shaping up to be commercial disappointments, fans fear for Ninja Theory. If Tango Gameworks’ closure has shown anything, it’s that Xbox is now ruthless in its cost-cutting measures.
With upcoming games like Gears 6 and Doom expected to show up soon, Microsoft will look toward closing the fiscal year with a positive outlook. Xbox is going through a challenging period, so it needs all the help it can get.
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