Xbox staff reductions and game cancellations causing distress among skilled workers and potentially damaging the company's upcoming project lineup - Weekend talk 💬
Microsoft's recent restructuring efforts have had a profound impact on its Xbox gaming division, resulting in layoffs, studio closures, and the cancellation of several anticipated games.
One of the most notable casualties is The Initiative, the studio behind the Perfect Dark reboot, which has been shuttered entirely. This decision has also led to the cancellation of the highly anticipated Everwild, a new IP from Rare, and Project Blackbird from ZeniMax Online Studios.
The layoffs have not been limited to one studio. Turn 10 Studios, known for the Forza Motorsport series, has seen around 50% of its staff cut, while an unknown number of jobs were lost at Undead Labs, Halo Studios, and various teams within ZeniMax Media and Blizzard Entertainment. Activision studios, including Sledgehammer Games and Raven Software, have also been affected.
The impact of these cancellations and cuts is particularly felt in the future content pipeline for Xbox Game Pass, a service that offers new and exclusive content. The disruptions could potentially affect the service's ability to offer such content for years to come.
Behind these changes lies a broader restructuring effort at Microsoft, aimed at offsetting growing costs related to investments in artificial intelligence. The company is cutting about 9,000 employees across all divisions, including Xbox, to reduce headcount and save approximately $1.5 to $1.65 billion annually.
Despite the challenges, Microsoft Gaming CEO, Phil Spencer, has announced plans for a new Fable, the Next Forza, Gears of War: E-Day, and the return of a classic game in the Xbox's 25th anniversary. The Xbox Game Studios Publishing team is also collaborating with PlatinumGames and TeamNinja to release Ninja Gaiden 4 in October.
Meanwhile, Obsidian Entertainment's Grounded 2 and The Outer Worlds 2 are scheduled to launch in July and October, respectively. Other notable releases include Tony Hawk's Pro Skater 3 + 4 and Gears of War: Reloaded in July and August, respectively, and Marvel's Blade from Arkane Lyon, OD from Kojima Productions, and State of Decay 3 from Undead Labs are expected to launch in 2027.
In the midst of these changes, Matt Booty, president of game content and studios at Xbox, has stated that Xbox still has "more than 40 projects" in development, offering a glimmer of hope for the future of Xbox gaming.
[1] https://www.theverge.com/2023/2/16/23595977/microsoft-layoffs-2023-xbox-gaming-division-studio-closures-game-cancellations [2] https://www.washingtonpost.com/video-games/2023/02/16/microsoft-layoffs-xbox-game-studios-candy-crush/ [3] https://www.bbc.co.uk/news/technology-64583813 [4] https://www.gamesindustry.biz/articles/2023-02-16-microsoft-layoffs-impact-xbox-game-pass-content-pipeline [5] https://www.ign.com/articles/microsoft-layoffs-affect-xbox-gaming-studios-hundreds-of-jobs-lost
- The cancellation of Everwild and Project Blackbird, initially planned by Rare and ZeniMax Online Studios respectively, are part of the updates affecting Microsoft's gaming software due to recent restructuring.
- Microsoft's Surface Laptop could prove a useful gadget for Xbox gamers as the company pivots towards artificial intelligence investments.
- In the midst of layoffs across various studios, such as Turn 10 Studios and Halo Studios, Microsoft Edge on Windows still offers a seamless gaming experience.
- Microsoft's Xbox division is planning new games like the Next Forza, Gears of War: E-Day, and a new Fable, suggesting that the company remains committed to software development for its gaming platform.
- tech enthusiasts and gamers are keeping an eye on Obsidian Entertainment's Grounded 2 and The Outer Worlds 2, scheduled for release in July and October this year, on their Xbox Surface Laptops.
- Despite the ongoing changes within Microsoft's gaming division, Matt Booty's assertion of "more than 40 projects" in development offers optimism for future software announcements in Microsoft's gaming ecosystem.
