Recent reports reveal that Xbox is poised for further reductions, following substantial layoffs and studio closures. Notably impacted are Arkane Austin and Tango Gameworks, both actively developing new titles before their untimely shutdowns.
Microsoft’s Cost-Cutting Strategy
Microsoft is trimming down its operations, influenced by a need to streamline management and cut costs. These moves include the absorption of Roundhouse Studios by ZeniMax Online Studios and the integration of their team into projects like The Elder Scrolls Online. This strategy follows layoffs affecting almost 1.9k employees, primarily from the Activision Blizzard teams acquired by Microsoft.
Future Uncertainties and Strategic Shifts
Industry insider Jason Schreier sheds light on the potential future cuts across the Xbox organization. This decision is partly driven by a shift in focus at Xbox, from sustaining a plethora of exclusives for the stagnating Game Pass to concentrating on bigger, blockbuster titles. The pressure is on for the remaining studios to perform amidst these strategic changes.
In the background, the Game Pass service sees minimal growth, prompting Microsoft to reevaluate its priorities. The ongoing adjustments aim to enhance Xbox’s competitiveness against giants like Sony, focusing more on AAA games to captivate a broader audience.
