Additional Xbox layoffs are reportedly on the horizon as the company aims to reduce expenses

Amidst a week filled with intense competition between Microsoft and Sony, it seems that the Xbox platform holder is still facing some aftermath, as it recently revealed the closure of several internal studios. New reporting from Bloomberg’s Jason Schreier suggests that Microsoft’s gaming division is facing more challenges as it strives to reduce costs.

According to unnamed insiders, Xbox has reportedly started offering voluntary severance packages to a variety of ZeniMax employees, including producers and quality assurance testers, as Schreier reported. In 2020, Microsoft acquired Bethesda’s parent company for a staggering $7.5 billion. Rumor has it that additional cuts are on the horizon for the Xbox organization. The company’s spokesperson chose not to provide any comment.

Discussing the closures in a broader context, Xbox president Matt Booty expressed that the company’s studios were stretched too thin, akin to spreading peanut butter on bread. He also acknowledged that leaders across the division felt understaffed. Microsoft has made the decision to close down Arkane Austin, Tango Gameworks, and Alpha Dog Games, reallocating resources to other areas.

Schreier was prompted to illustrate the current state of the industry using RPG analogies, and the daring investigative journalist responded: “Imagine a colossal serpent colliding head-on with Sephiroth.”

NEW:
– Xbox still isn't done cutting costs, sent voluntary buyout offers to some Zenimax staff
– Why were Arkane Austin and Tango Gameworks closed? Bad timing, perhaps
– Activision purchase has ramped up scrutiny on Xbox
And much more – here's my latest: https://t.co/Yik5r5ii0r

— Jason Schreier (@jasonschreier) May 8, 2024

It’s quite intriguing to discover that the drama is far from being resolved. What are your thoughts on the extent of Microsoft’s potential cuts and the possibility of the industry returning to a state of normalcy?