In a week that has been something of a bloodbath for longtime rivals Microsoft and Sony, it appears that the dust hasn't quite settled yet for the Xbox platform holder, which just announced the closure of multiple internal studios. New reporting from Bloomberg's Jason Schreier indicates that more pain is coming down the corporate ladder as Microsoft's beleaguered gaming division attempts to cut costs further.

Citing unnamed sources who spoke on the condition of anonymity, Schreier says that this week, Xbox began offering voluntary severance packages to producers, quality assurance testers, and other ZeniMax staff. Microsoft purchased Bethesda's parent company in 2020 for the princely sum of $7.5 billion, and others across the Xbox organisation have reportedly been told that more cuts are coming. A spokesperson for the company declined to comment.

Speaking about the closures more broadly on Wednesday, Xbox president Matt Booty said that the company's studios were spread too thin, like "peanut butter on bread", and that leaders across the division felt understaffed. Microsoft decided to close Arkane Austin, Tango Gameworks, and Alpha Dog Games in order to free up resources elsewhere.

Schreier was asked to describe just how cooked the state of the industry is right now in RPG terms, and the intrepid investigative journalist said: "It's like a big snake that just ran into Sephiroth."

NEW:
- Xbox still isn't done cutting costs, sent voluntary buyout offers to some Zenimax staff
- Why were Arkane Austin and Tango Gameworks closed? Bad timing, perhaps
- Activision purchase has ramped up scrutiny on Xbox
And much more - here's my latest: https://t.co/Yik5r5ii0r

— Jason Schreier (@jasonschreier) May 8, 2024

Posted: May 14, 2024 9:07 pm
Related Forum: Xbox Forum

Source: https://www.pushsquare.com/news/2024/05/more-xbox-layoffs-reportedly-inbound-as-company-attempts-to-cut-costs