Xbox Planning Additional Layoffs After Studio Closures: Report

May. 9, 2024

Earlier this week, Microsoft sent shockwaves through the gaming community when the Xbox team revealed that it was closing three prolific studios, including Arkane Austin, Tango Gameworks, and Alpha Dog Studio. The gaming community was justifiably upset after the news surfaced. However, it seems that is only the tip of the iceberg, as Microsoft is planning more layoffs as part of the ongoing restructuring efforts at Xbox.

Outside of that, more news surfaced about theclosure of three studios under ZeniMax. At a town hall meeting, Xbox president Matt Booty spoke about the shutdown. He cited how the three studios that were shuttered were understaffed, resulting in the leadership taking the unfortunate decision to free up resources for other projects.

These decisions were not connected to the sales of either Hi-Fi Rush or the commercial flop Redfall (review). Jill Braff, head of ZeniMax Studios, claimed this reorganization will help ZeniMax to focus better on fewer projects.

As per Schreier’s internal sources, Arkane Austin and Tango Gameworks were looking to hire new employees. They were also pitching their game ideas to the higher-ups. Arkane Austin specifically pitched for a single-player immersive sim title. If this is true, the news of the layoffs becomes even saddening.

Keeping my personal feelings aside, it doesn’t make sense no matter how you look at this news. On the one hand, Xbox executives havepraised Hi-Fi Rushover the moon and even mentioned their commitment to Redfall. On the other hand, we saw studio closures last week even though they were trying to hire new people and pitch for their next project; something that Xbox executives should be excited about.

Wasn’t the whole point of buying ZeniMax and their studios to nurture Xbox’s gaming division and provide memorable experiences to gamers? So, who is benefitting from the layoffs and three studio closures? Alas, only Xbox can answer these questions. Let us know your thoughts in the comments below.

Meet Sampad, Beebom’s in-house video game enthusiast and writer. With two years of freelance experience, he has passionately crafted articles about the games he loves. You can find his writings on Sportskeeda, Gamingbolt, and GGTalks.

During work hours, he covers the latest gaming news, creates how-to guides, and occasionally shares video game reviews. In his free time, he enjoys building Gundam model kits, planning his next cosplay, and play his favorite RPG games.