Everyone across the gaming world is gearing up for what many expect to be some of the darkest days in the history of Xbox. Multiple studios are at risk of being shut down, while other teams are facing significant cuts as Microsoft and Xbox look to cut costs and “reset” the division under CEO Asha Sharma.
In addition to the cuts within Xbox, the company is also ending various third-party contracts and vendor agreements.
Xbox Says It’s Not Cutting Back
On Tuesday, it was revealed that the agreement between Xbox and IO Interactive that would’ve had Xbox publish the developer’s Project Fantasy title was terminated. However, just because it’s cutting some contracts, Xbox says it’s not reducing its investment in gaming.
In a statement provided first to Bloomberg’s Jason Schreier, an Xbox representative said that the company is “taking a fresh look at where we invest so we’re focusing on our highest priorities.”
The representative continued: “We’re not reducing our overall investment in games. We expect to invest about the same in content as we did last year. What’s changing is where we’re investing and the kinds of projects we’re backing.”
Microsoft has been looking at its entire portfolio in recent months, with at least five studios facing potential closure, or, at the very least, a deal that will see them get out from under Xbox. The five studios in question are Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane Studios. Nothing has been confirmed by Xbox regarding the status of the studios or the games they are working on.
It’s widely expected that the layoffs will begin July 6 and span across most of Xbox’s footprint.
What are your feelings about everything happening at Xbox right now, and all of the rumors circulating? Leave your thoughts in the comments below, or join the discussion in the official Insider Gaming Discord.
In other news, read about Rockstar Games employees looking to unionize before Grand Theft Auto 6 releases in November. And for even more Insider Gaming delivered directly to your inbox, sign up for our newsletter.
Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
More from Mike Straw
Comments