Microsoft Xbox layoffs and studio closures: What we know
▼ Summary
– Asha Sharma and Matt Booty sent a memo to Xbox staff on June 10th warning of an “Xbox reset” due to a 3 percent accountability margin, high component costs, and an overextended studio system.
– The Verge and Bloomberg reported that Xbox plans layoffs in July, potentially including studio closures or spinoffs.
– The Verge’s Tom Warren reported on June 30th that Microsoft may close at least five studios and cancel games like Blade.
The Xbox division is undergoing another major restructuring. On June 10th, just months after Asha Sharma stepped into the CEO role, she and newly appointed chief content officer Matt Booty issued a memo to employees signaling an “Xbox reset.” The leadership cited several significant headwinds, including a 3 percent accountability margin, substantially higher component prices for consoles driven by ongoing memory and storage shortages, and a studio system that has become over extended.
That same day, reports from The Verge and Bloomberg indicated that the Xbox division would begin planning layoffs in July. These cuts, anticipated to be announced on July 6th, may involve studio closures or spinoffs. According to The Verge’s Tom Warren, reporting on June 30th, Microsoft is considering shuttering at least five studios and could also cancel games such as Blade.
(Source: The Verge)
