Asha Sharma's shakeup of Xbox began in earnest today – with a wave of layoffs. Despite initial fears, these layoffs haven't shut down any studios, but there are at least two studios that are being “released” by Xbox without a new owner to take them over, leaving their futures uncertain.
To put it all in perspective, you only have to look at what this means for all the studios acquired under the previous CEO, Phil Spencer. Counting previous studio closures and this new wave of companies being sold or spun off, Xbox has lost nearly a third of the studios it bought under Phil Spencer, and many who have been part of Xbox have suffered significant layoffs.
Two-thirds of Phil Spencer's acquisitions are still on Xbox, but they're not doing well.
The following studios acquired by Xbox under Phil Spencer are, for one reason or another, no longer part of Xbox:
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Ninja Theory – Sold to an undisclosed buyer, confirmed today
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Obligation Games – Independent, confirmed today
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Undead Labs – Sold to an undisclosed buyer, confirmed today
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Double Fine – Independent, confirmed today
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Tango Gameworks – Closed in 2024, later purchased by Krafton
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Alpha Dog Games – Closed in 2024, later reopened as an independent
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Roundhouse Studios – Closed in 2024
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Toys for Bob – Free until 2024
Xbox also discontinued Arkane Austin in 2024. Arkane remains fully open, for now, but that's likely to change; Due to French labor laws, Xbox has begun a “mandatory consultation” period before it lays off or closes the studio.
Of those remaining, many have been fired from both past and present jobs. We're already hearing that Obsidian and Bethesda have been hit, with nearly 3,000 job cuts at Xbox. Both studios were also acquired under Phil Spencer.
It remains to be seen where Asha Sharma's priorities lie. He's currently saying that Game Pass is still a priority, and it's been reported that the Bethesda cuts are helping the team focus on the new Fallout and Elder Scrolls games. However, it's hard to see how the studio could focus on these massive sequels with fewer workers. As for Game Pass, there are now few studios that are forced to put their games on the subscription service, and Kingdom of Decay 3 may not make it there, now that it's sold out.
All eyes will be on Xbox this week as we wait for more details to emerge. What is clear, though, is that thousands of developers are losing their jobs, and the old vision for Xbox is well and truly over.
- Date of establishment
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April 4, 1975
- CEO
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Satya Nadella
- Headquarters
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Redmond, Washington, USA
