tech
Fears for Xbox as it puts its developers on the chopping block once again
After the billion-dollar company’s leaders sent staff a memo saying the brand had ‘over-extended’, game studios may be in the firing line
TL;DR
- Xbox is reportedly planning to shut down Ninja Theory, Double Fine, and Compulsion Games due to financial overextension and declining revenue.
- Leaders Asha Sharma and Matt Booty warned staff of 'hard truths' and the need to 'reset' the business after spending over $20bn in five years without revenue growth.
- This follows a pattern of Microsoft/Xbox closing studios like Arkane Austin and Tango Gameworks, and making significant layoffs.
- The company is reportedly prioritizing development of new Halo, Fallout, and Elder Scrolls titles, and may spin off Xbox into a separate company.
- Despite these challenges, Microsoft as a whole posted substantial profits, and the company's hardware component crisis is cited as a motivator for change.