Microsoft plans to cut jobs after closing multiple game studios, but also says it needs games like Hi-Fi Rush
Microsoft's gaming division, Xbox, has closed several game studios as part of a cost-cutting effort, but it has also reportedly encouraged several staff, including producers at subsidiaries, to quit voluntarily, with further job cuts planned.
Xbox Studio Closures: Microsoft Plans More Cost-Cutting Measures After Layoffs - Bloomberg
Microsoft says it needs games like Hi-Fi Rush the day after killing its studio - The Verge
https://www.theverge.com/2024/5/8/24152137/xbox-hi-fi-rush-tango-gameworks-matt-booty
On May 7, 2024, three game studios under Zenimax, which was acquired by Microsoft for $7.5 billion in 2020, announced on Twitter that they would be closing.
Microsoft decides to close several game studios under Bethesda Softworks, including those behind 'Redfall,' 'The Evil Within,' and 'Ghostwire: Tokyo' - GIGAZINE
Tango Gameworks, the developer of Ghostwire: Tokyo and Hi-Fi Rush , has closed. Hi-Fi Rush will continue to be available on multiple platforms and will be playable in the future.
— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024
Arkane Austin, the developer of Redfall , plans to have some of its members join other projects after closing.
Sign up here https://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8
— Arkane Studios (@ArkaneStudios) May 7, 2024
Alpha Dog Games, the developer of ' Mighty DOOM ', will also be closed, and Mighty DOOM will cease to be available on August 7. Roundhouse Games will not be closed, but will be absorbed into Zenimax Online Studios.
Players interested in requesting a refund for purchased in-game currency can sign up here https://t.co/R7rL4LKsjk to receive details. pic.twitter.com/9g3kBoRGVw
— Alpha Dog Games (@AlphaDogGames) May 7, 2024
In addition, sources said ZeniMax producers, quality assurance testers and other staff were encouraged to resign voluntarily. Xbox studio head Matt Booty said, 'The studios were spread too thin, like peanut butter on bread,' and revealed that the aim of closing some studios is to focus resources on other projects. Xbox's move is also part of a contraction in the overall gaming industry due to changes in the economic environment following the rapid growth during the pandemic. Microsoft has invested a total of more than $76 billion (about 11.8 trillion yen) in the acquisition of ZeniMax and Activision Blizzard since 2021, expanding its gaming division more significantly than other companies, but the company's internal eyes on the gaming business have become stricter accordingly.
In recent years, Xbox has been focusing on its subscription game distribution service 'Xbox Game Pass,' but has not seen the significant growth expected. According to analysts, monthly game service spending in the United States has remained flat or at low growth since mid-2021. 'My biggest concern about the industry is the lack of growth,' said Phil Spencer, head of Xbox.
Booty wrote in an email to employees that he had high expectations for Bethesda Games, a subsidiary of ZeniMax, known for the 'Fallout' series, 'The Elder Scrolls' series, and 'DOOM' series. In addition, on May 8, 2024, the day after several game studios were closed, Booty said at an off-site meeting with ZeniMax staff that 'we need small games that give us fame and awards,' and praised 'Hi-Fi Rush' developed by Tango Gameworks, which had also been closed. The staff, who knew that Tango Gameworks had just closed, were surprised by Booty's remarks, but it seems that a sequel to 'Hi-Fi Rush' was also planned, and the IT news site The Verge pointed out that Booty's remarks may have hinted at the continuation of the sequel development.
'We hope this restructuring will allow us to better focus on our Fallout and DOOM franchise projects,' ZeniMax studio head Jill Braff said in a statement.
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