The Expected Layoffs And Changes At XBOX Have Come, And They're Brutal
Image Source: Pure Xbox
The day has arrived.
For over a month now, word has circulated about XBOX (formerly Xbox) layoffs and studio closures, ironically, after a strong showing at their summer showcase. As those rumors mounted, Asha Sharma, the new head of XBOX after Phil Spencer left, revealed the hard truth: layoffs were coming, and studios were leaving.
That day has come. This morning, XBOX, through an email sent out by Asha, announced they are laying off 3,200 employees across their developers, and four studios will be leaving to become independent or acquired by new ownership, and one studio, in addition, is entering consultation.
Of these layoffs, 1,600 are effective immediately, with the remaining 1,600 coming throughout the fiscal year. The studios leaving to transition to independence are Double Fine Productions and Compulsion Games. Double Fine is known for its Psychonauts franchise, and Compulsion is known for its highly praised work on South of Midnight. Both studios will retain their IPs and catalog, as well as runway for their unannounced games. Psychonauts, however, will remain with XBOX.
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Image Source: IGN
Senua developer Ninja Theory and State of Decay developer Undead Labs are now in talks to be acquired by new ownership with funding to finish their recently announced games: Senua and State of Decay 3. There was no mention of who the new owners would be. Additionally, per French labor law, Arkane, who is developing Marvel’s Blade, is undergoing consultation to review strategies.
It’s a brutal bit of news, even though it was expected. That doesn’t make it any less devastating. In the past two years, Microsoft Gaming has laid off almost 7,500 employees, and more across Microsoft outside its gaming division; people with livelihoods and families, and, in the United States, healthcare tied to employment. In that same time span, they have lost approximately 6 executives, the people responsible for the business decisions that are now affecting the largest publisher in gaming.
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