Microsoft Xbox Shutters Studios Amid Gaming Sector Restructuring

Microsoft Xbox Layoffs: Studios Closed Amid Restructuring

Microsoft’s Xbox division is undergoing a major restructuring, resulting in the closure of multiple gaming studios. Arkane Austin, the renowned developer behind games like Dishonored and Prey, is among those affected. Other studios facing closure include Tango Gameworks (Hi-Fi Rush) and Alpha Dog.

The decision, as explained by Xbox Game Studios head Matt Booty, aims to streamline operations and reallocate resources towards supporting the Xbox game portfolio and fostering new intellectual property. This move aligns with Microsoft’s commitment to innovation and future growth within the gaming sector.

Revenue Growth Despite Layoffs

Despite the layoffs, it’s worth noting that Microsoft’s Xbox content and services segment recently reported a substantial 62% revenue increase in the third quarter of last year. This growth was driven in part by the acquisition of Activision Blizzard.

Other Gaming Sector Layoffs

Microsoft’s layoffs are not isolated. Last week, Take-Two Interactive announced the closure of two subsidiary studios as part of a broader restructuring effort. Earlier this year, Microsoft initiated significant layoffs affecting approximately 1,900 employees across Activision and Xbox.

The gaming sector has been experiencing a slowdown, leading to cost-cutting measures by various companies. Microsoft’s restructuring, while impacting several studios and employees, is part of its strategy to adapt to the changing market dynamics and position itself for continued growth in the future.

1 thought on “Microsoft Xbox Shutters Studios Amid Gaming Sector Restructuring”

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