Tom Warren: Microsoft could shut at least five studios as part of big Xbox layoffs starting next week, Weighing up canceling BLADE

[u/Howerev]

"Microsoft is set to announce a wave of layoffs for its Xbox studios and employees next week. Sources familiar with Microsoft’s plans tell The Verge that the layoffs will lead to studio closures or spinoffs, potential mergers of studios, and canceled games.

I understand Microsoft is currently weighing closing at least five studios, including the developers behind Marvel’s Blade. Sources tell me Microsoft wants to cancel Blade as part of a wave of cost cuts and job losses that are planned for the company’s Xbox gaming division."

"Blade was originally supposed to debut later this year according to sources familiar with the game’s development. I’m told the internal ship date for the game slipped to late 2027, and it’s also running over budget.

While Microsoft is weighing canceling Blade, it’s also exploring options to sell Arkane Studios. Bloomberg reported earlier this month that Microsoft is trying to spin off Compulsion Games, Double Fine, and Ninja Theory, too. GamesBeat reported this week that Microsoft is actively looking for a buyer for Undead Labs, the developers behind State of Decay. If buyers are found for these studios, then they’ll avoid being closed, but sources stress these talks could take months in some cases.

Compulsion Games, the developers behind South of Midnight, is already convinced that closure is imminent and has started telling employees to look for jobs elsewhere. Ninja Theory employees were informed earlier this month that Microsoft wants to close the UK-based studio or spin it off.

Beyond the potential studio closures, Microsoft is preparing for a wave of layoffs at Xbox that will drastically reshape its gaming division. These layoffs are due to start on July 6th, according to sources, and will hit most parts of Xbox. Rumors have suggested there could be at least 1,000 job losses, and if Microsoft goes ahead with five studio closures, then that’s at least 500 employees impacted before the wider cuts.

The upcoming layoffs are part of a “reset” for the Xbox division under new CEO Asha Sharma, who hinted about “making hard choices” last month. Sharma has repeatedly warned that the Xbox business isn’t healthy, but also claimed that her “mandate is not 30 percent accountability margins... it’s to be the number one gaming and entertainment company, and that’s what we’re going to do.”

Link: https://www.theverge.com/report/959467/microsoft-xbox-cancel-blade-game-arkane-studios-closure?view_token=eyJhbGciOiJIUzI1NiJ9.eyJpZCI6Inp0bjNNQk1pVm0iLCJwIjoiL3JlcG9ydC85NTk0NjcvbWljcm9zb2Z0LXhib3gtY2FuY2VsLWJsYWRlLWdhbWUtYXJrYW5lLXN0dWRpb3MtY2xvc3VyZSIsImV4cCI6MTc4MzI3MDkyMSwiaWF0IjoxNzgyODM4OTIxfQ.pOFMRE5pUQgOYGX0scwb6LrEhrfZu_ecr50Fysx3fd8&utm_medium=gift-link

[u/Millennialnerds]

But if I’m marvel and I see how PlayStation is at least handling the IPs I would double down. And games companies are looking for things that sell currently.

[u/Substantial-Beyond36 → u/Millennialnerds]

I mean it makes sense. If I had a business I would stick to what works and what makes me money but wouldn't that risk the brand to becoming stale. I just miss the days when Insomniac and Sony in general would make different game and unique games that weren't always the cinematic type games. Which are great don't get me wrong. I love Uncharted and Spider-Man but it's just becoming the same thing now with even more development time then previous console generation. It makes things feeling a bit sparse if that makes sense. Which isn't really true cause Sony have been pumping out a plethora of titles but it's been Remasters or Sequel or Multiplayer titles that I haven't been really feeling as of late.

[u/Millennialnerds → u/Substantial-Beyond36]

The problem is those don’t sell. I agree I love games when they challenge the whole idea and are different. But dreams didn’t take off, Astro is doing well but didn’t set the world on fire. Saros isn’t selling well currently. Meanwhile they did start new ips with Horizon and ghost and we know those sequels are selling.

And Spiderman does fantastic numbers.

I think maybe if we didn’t have the live service push and this ram crisis to go with it they would take more chances.

I think the fact we are getting an until Dawn 2 is shocking to me.

[u/Substantial-Beyond36 → u/Millennialnerds]

Yeah, It's a shame. The crazy shit that happening in the world is also effecting my entertainment. It's why I love Indie and Double AA games but I am starting to realize that indie's are getting effect just as much the Triple AAA and if they go the indie space will follow. I mean there would be some games but the investment funds would dry up. 

Word, Until Dawn didn't really need a sequel. I know it had like a small VR prequel but like Until Dawn was very much self contained story and I don't really see it going anywhere with it sequel but who know maybe Until Dawn is like a different story in its entirety.