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Microsoft layoffs: Multiple Xbox studios closed, teams consolidated as company cuts costs
Microsoft layoffs: This comes as the company undergoes significant restructuring amidst a slowdown in gaming sector.
Microsoft layoffs: Microsoft's Xbox is set to close several gaming studios, including the famous Arkane Austin. This comes as the company undergoes significant restructuring amidst a slowdown in gaming sector. Matt Booty, head of Xbox Game Studios, said in an internal memo that Tokyo-based Tango Gameworks, the creator of "Hi-Fi Rush" and Canada-based Alpha Dog, are among the studios facing closure. However, the exact number of employees affected remains undisclosed, news agency Reuters reported.
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Why is Microsoft's Xbox laying off employees?
Matt Booty said that the decision will help the company to streamline operations as resources will be reallocated to support Xbox's game portfolio and nurturing new intellectual property. The "reprioritisation of titles and resources" is concomitant with Microsoft's commitment to innovation and future growth within the gaming sector, Matt Booty asserted.
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Is Microsoft's Xbox facing losses?
No, Microsoft's Xbox content and services segment reported a substantial 62% surge in third-quarter revenue last month following the acquisition of Activision Blizzard.
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What about other layoffs in the gaming sector?
Take-Two Interactive announced shutdown of two subsidiary studios as part of a broader restructuring effort last week. Earlier this year, Microsoft began significant layoffs affecting 1,900 employees across Activision and Xbox.
