We had reported back in June that XBOX was mulling over multiple studio closures and layoffs. The company has been in a rough state the past few years, with multiple failed games (Starfield and South of Midnight, to name a couple), disastrous marketing campaigns (This is an Xbox!), and even allowing marquee XBOX brands like Halo and Gears of War to pop up on the hardware of direct competitors. With new CEO Asha Sharma in charge, it was clear that big changes were coming to XBOX, and now rumor has become fact as 3,200 layoffs have been announced, and five studios are being divested.
Of the 3,200 people cut, 1,600 were immediate, with the rest to follow at a later time. The five studios that were ultimately let go were Compulsion Games, Arkane, Ninja Theory, Double Fine, and Undead Labs. Compulsion Games and Double Fine have both already been fully divested, while the remaining studios are in the process of procuring financial backing. They will all be able to maintain their IPs and make a go of it as independent companies moving forward.
This move comes at a time of great upheaval for XBOX, as the brand focuses on a reset under the guidance of new CEO Asha Sharma. XBOX has been in a funk for years now as a result of some very odd choices regarding game exclusivity (Gears of War is on PlayStation now, for instance), muddled marketing, and failed games. Sadly, all of this has combined to create an untenable situation and the resultant layoffs now impacting so many. Further compounding the issue is just how much of the industry is currently under XBOX’s umbrella; Activision (and all the companies that comprise it, including Blizzard), Bethesda, and more are all part of the XBOX family and producing games that are sold across all platforms. If XBOX missteps it has an impact on the entire ecosystem of gaming.
Whether or not yesterday’s move will result in positive changes for XBOX down the road remains to be seen, but we’ll keep you all posted.
Source: The Wall Street Journal + GamesIndustry.biz