Expect More Cuts from Xbox Following the Shutdown of Four Studios

Microsoft's Xbox division is set to implement further cost-cutting measures, following the closure of four of its studios. Reports said that the voluntary severance packages are offered to some ZeniMax staff as a part of the division's strategy to streamline operations.

According to Bloomberg's Jason Schreier, from this week, Xbox has started offering voluntary severance agreements to producers, quality assurance testers, and other personnel at ZeniMax, as per insiders. Word has spread throughout the Xbox organization that further reductions are impending.

It's reported that in a recent town hall event, Xbox president Matt Booty engaged with ZeniMax employees, praising their efforts on Hi-Fi Rush. However, he didn't provide specific reasons behind the shutdown of its developer studio. 

In discussing the closures on a wider scale, Booty stated that the company's studios had been overextended, like “peanut butter on bread.” He acknowledged that the leadership within the division had felt a shortage of staff. The decision to shut these studios was made to reallocate resources more effectively, he added.

The closures of 4 studios earlier this week, including those of Arkane Austin and Tango Gameworks, have generated understandable concern and criticism, particularly the disbanding of Tango Gameworks, the team behind the successful Hi-Fi Rush.  

As the cost-cutting measures persist within the Xbox division, questions about the brand's future direction continue to arise. Are you surprised by Xbox's recent action of cuts of employees and shutdown of studios? Let us know. 

You can check out the original report from Bloomberg here and don't forget to join our 80 Level Talent platform and our Telegram channel, follow us on Instagram, Twitter, and LinkedIn, where we share breakdowns, the latest news, awesome artworks, and more.