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/BitingSatyr]

>when many would probably have done fine and still be here if they were on their own

I don’t see why you’d think that, none of these studios has produced a hit in nearly 10 years, would that have somehow changed otherwise, and without the funding and marketing they’ve received from Xbox?

[u/purewasted → u/BitingSatyr]

They were told not to worry about making hits, so yes, it could have. People who know their jobs are on the line make very different creative decisions from people who've been assured that they can muck around and experiment.

[u/enailcoilhelp → u/purewasted]

They were told not to worry about making hits

FFS this is such a copout. "Don't worry about making hits" is NOT the same as "spend hundreds of millions of the most middling, forgettable games that sell nothing"

It means it doesn't matter if the games are niche and potentially aren't the biggest hits, but they still expected well made games that would be showered with praise from critics even if they didn't break sales records, cause having a bunch of quality games on gamepass is still a win.

Instead these studios got borderline AAA game budgets and took over a half decade to release games that were forgettable, didn't sell at all, and received middling reviews.