Just
hours
after
learning
that
Microsoft
was
shutting
down
a
number
of
game
studios
this
week,
Dinga
Bakaba,
head
of
Microsoft-owned
Arkane
Lyon,
decided
to
let
the
company
know
how
he
felt
about
the
decision
—
right
in
public.
“Don’t
throw
us
into
gold
fever
gambits,
don’t
use
us
as
strawmen
for
miscalculations
/
blind
spots,
don’t
make
our
work
environments
Darwinist
jungles,”
Bakaba
wrote
on
X.
Bakaba,
whose
studio
wasn’t
impacted
by
the
layoffs
this
week,
said
his
message
was
aimed
at
“any
executive
reading
this,”
including
the
Xbox
leaders
behind
the
latest
wave
of
layoffs.
It
was
a
rare
public
display
of
criticism,
but
sources
at
Microsoft
tell
me
it
reflects
a
growing
discontent
and
fear
among
Xbox
employees
about
what
comes
next.
Microsoft’s
latest
round
of
layoffs
shocked
both
employees
and
fans.
Arkane
Austin’s
big
Redfall
update
was
on
the
way
with
a
new
offline
mode,
and
the
DLC
was
being
worked
on
just
hours
before
the
studio
was
closed.
Xbox
employees
were
surprised
at
the
Tango
Gameworks
closure
The
shutdown
of
Tango
Gameworks,
the
studio
behind
Hi-Fi
Rush,
has
surprised
people
the
most.
The
game
was
considered
an
Xbox
hit,
winning
praise
among
critics
and
making
its
way
to
PS5
earlier
this
year.
Even
Microsoft
was
happy
with
Hi-Fi
Rush.
“Hi-Fi
Rush
was
a
break
out
hit
for
us
and
our
players
in
all
key
measurements
and
expectations,”
said
Aaron
Greenberg,
head
of
Xbox
games
marketing,
just
a
year
ago.
“We
couldn’t
be
happier
with
what
the
team
at
Tango
Gameworks
delivered
with
this
surprise
release.”
Greenberg
and
Xbox
chief
Phil
Spencer
both
visited
Tango
Gameworks
in
September,
playing
games
with
the
team
and
posing
for
group
photos.
Now,
the
studio
is
the
latest
victim
of
layoffs
that
have
rocked
the
game
industry
over
the
past
18
months.
Three
Bethesda
studios
— Arkane
Austin,
Tango
Gameworks,
and
Alpha
Dog
Games
— are
being
shuttered,
and
the
team
at
Roundhouse
Studios
is
moving
into
ZeniMax
Online
Studios.
The
studio
closures
come
less
than
six
months
after
Microsoft
laid
off
1,900
Activision
Blizzard
and
Xbox
employees
and
just
months
after
Sony
closed
some
of
its
own
game
studios
and
laid
off
around
900
employees.
The
depressing
list
of
layoffs
at
game
studios
continues
to
grow
on
a
weekly
basis,
with
GTA
6
and
BioShock
publisher
Take-Two
laying
off
hundreds
of
employees
last
month
and
cutting
projects.
Inside
Xbox,
there’s
now
uncertainty
about
what
the
future
holds
and
questions
over
Microsoft’s
gaming
strategy.
While
Microsoft
is
looking
toward
a
more
PC-like
future
for
its
Xbox
console,
the
company
continues
to
battle
a
slowdown
in
Game
Pass
subscribers,
lackluster
Xbox
console
sales,
and
game
launch
delays.
A
combination
of
these
events
led
to
four
previously
Xbox-exclusive
games
launching
on
the
PS5
recently
and
some
landing
on
the
Nintendo
Switch.
I
reported
earlier
this
year
that
Microsoft
had
been
considering
bringing
Gears
of
War
to
rival
consoles,
and
we’re
still
waiting
to
see
if
a
long-rumored
Gears
of
War
collection
is
ever
confirmed.
Either
way,
I’m
still
expecting
to
see
more
Xbox
games
arrive
on
PS5
and
Switch,
and
it
will
be
interesting
to
see
if
the
Xbox
game
showcase
in
June
includes
any
new
announcements
for
rival
hardware.
Microsoft
has
been
debating
putting
Call
of
Duty
on
Game
Pass
Microsoft
has
also
had
internal
debates
about
whether
to
put
new
releases
of
Call
of
Duty
into
Game
Pass.
I
understand
this
is
a
debate
that
has
been
ongoing
internally
for
quite
some
time,
with
concerns
from
some
that
the
revenue
that
Call
of
Duty
typically
generates
for
Activision
Blizzard
will
be
undermined
by
Game
Pass.
I’m
told
that
Microsoft
has
also
considered
increasing
the
price
of
Game
Pass
Ultimate
again.
These
are
only
considerations,
so
a
final
decision
could
mean
we
still
see
a
future
Call
of
Duty
release
appear
in
most
versions
of
Game
Pass.
The
debate
internally
reflects
the
fact
Microsoft’s
Xbox
strategy
has
shifted
from
just
delivering
its
games
exclusively
into
Game
Pass
to
considering
bringing
more
Xbox
games
to
multiple
platforms.
In
yesterday’s
memo
from
Matt
Booty,
head
of
Xbox
Game
Studios,
there
was
a
hint
of
a
reprioritization
for
Bethesda
teams
that
we
may
well
see
elsewhere
with
Xbox.
“These
changes
are
grounded
in
prioritizing
high-impact
titles
and
further
investing
in
Bethesda’s
portfolio
of
blockbuster
games,”
said
Booty,
before
noting
that
Xbox
is
doubling
down
on
Bethesda
franchises
that
are
“best
positioned
for
success.”
Did
Hi-Fi
Rush
really
not
meet
that
bar?
Now,
there
will
be
inevitable
questions
about
what
other
Xbox
games
aren’t
“best
positioned
for
success.”
Xbox
now
has
a
strong
lineup
of
games
planned
for
2024,
with
Senua’s
Saga:
Hellblade
II
set
to
debut
in
a
matter
of
weeks
on
May
21st.
I
understand
Hellblade
II
is
another
game
that
Microsoft
has
been
considering
for
the
PS5.
If
that
ever
happens,
at
this
point,
it’s
not
clear
if
even
that
would
be
considered
a
success.
Xbox
employees
are
now
bracing
for
what’s
next,
as
it
seems
unlikely
that
we’ve
seen
the
last
of
Microsoft’s
gaming
layoffs
and
cutbacks.
There
are
whispers
among
employees
that
core
Xbox
Game
Studios
are
set
for
cutbacks
next.
Last
month,
Microsoft
reported
that
Xbox
hardware
revenue
was
down
by
31
percent
year
over
year
and
an
obvious
admission
that
this
was
“driven
by
lower
volume
of
consoles
sold.”
Last
year,
Microsoft
reported
a
30
percent
drop
in
Xbox
hardware
revenue,
blaming
“increased
console
supply”
from
the
prior
year
in
2022.
Sony
PS5
sales
have
also
slowed,
but
not
like
Microsoft’s.
Microsoft’s
Xbox
business
isn’t
growing
without
Activision
Blizzard
While
Xbox
hardware
sales
are
a
cause
for
concern,
Microsoft
has
been
beating
the
Xbox
Game
Pass
drum
in
recent
years,
telling
us,
“The
[Xbox]
business
isn’t
how
many
consoles
you
sell.”
But
Microsoft’s
latest
earnings
showed
that
Xbox
content
and
services,
which
includes
Game
Pass,
would
have
only
been
up
a
single
percent
without
Activision
Blizzard,
and
overall
gaming
revenue
would
have
declined
without
this
giant
acquisition.
Microsoft
CFO
Amy
Hood
is
now
expecting
Xbox
hardware
revenues
to
decline
again
next
quarter.
Microsoft’s
gaming
business
isn’t
growing
without
Activision
Blizzard
right
now,
and
how
that
plays
out
throughout
2024
will
be
key
for
all
Xbox
studios.
Microsoft
has
a
busy
fall
ahead
for
Xbox,
with
Bethesda
currently
targeting
September
for
its
Starfield
expansion
Shattered
Space,
Activision
planning
the
next Call
of
Duty for
late
October,
and
Avowed and Microsoft
Flight
Simulator
2024 likely
to
follow
in
November.
To
top
that
all
off,
Indiana
Jones is
currently
planned
for
December.
If
Microsoft’s
game
studios
can
deliver
all
of
these
games
on
time,
then
there
will
be
plenty
to
play
on
Xbox
this
holiday,
with
a
new
Gears
of
War
title
expected
to
be
announced
during
the
Xbox
summer
showcase
alongside
some
release
dates
for
other
anticipated
Xbox
games.
Microsoft will
be
banking
on
some
new
game
announcements
lifting
the
Doom
around Xbox.
But
the
company’s
gaming
strategy
still
looks
unclear
—
and
the
challenges
run
deeper
than
a
handful
of
holiday
launches.
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