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Xbox shuts down studios and more layoffs could be on the 'horizon'

Microsoft’s gaming division is cutting costs and will reportedly conduct a strategy review for game releases

Xbox shuts down studios and more layoffs could be on the 'horizon'
Notícias ao Minuto

09:49 - 09/05/24 por Miguel Patinha Dias

Tech Xbox

Microsoft has announced that it will close four ZeniMax (Bethesda) studios, a developer it acquired in 2021 for $7.5 billion (equivalent to €6.9 billion).

The studios in question are Arkane Austin (‘Redfall’ and ‘Prey’), Tango Gameworks (‘Hi-Fi Rush’ and ‘The Evil Within’), Alpha Dog Studios (‘Mighty Doom’) and also Roundhouse Games (dedicated to supporting other projects).

While the first three will be closed and the workers laid off, the Roundhouse Games team will be integrated into ZeniMax Online Studios.

However, Bloomberg says that Microsoft's video game division, Xbox, will not stop there when it comes to further cost cuts within the company and that we may soon see more layoffs.

The situation is leading Microsoft to examine various areas of its business, with Xbox even evaluating whether to launch the next ‘Call of Duty’ on the launch day on the Xbox Game Pass service in order to have a greater volume of revenue and countering what has been the strategy for the games of its internal studios.

Read Also: May video games. Here are the main releases of the month (Portuguese version)

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