Xbox head Phil Spencer addressed the recent studio closures and layoffs for the first time during the Summer Game Fest, explaining why this step was necessary.
Which studios were closed? In May 2024, MeinMMO reported that four Bethesda studios, including Arkane Austin, Tango Gameworks, Alpha Dog Studios, and Roundhouse Games, had to say goodbye.
Especially the end of Tango and Arkane Austin was met with disbelief by many outsiders.
- The studio founded in 2010 by Resident Evil creator Shinji Mikami was known for unique gaming experiences like Ghostwire: Tokyo and the two “The Evil Within” parts, and it even released exactly the type of hit Microsoft wants to see more of in the future with Hi-Fi Rush in early 2023 (via The Verge).
- While Arkane Austin did release a unfinished, disappointing co-op shooter with Redfall in 2023, the acclaimed Prey was previously developed in Austin. Some of the studio’s experienced developers, such as Harvey Smith, had previously worked on milestones like System Shock, Deus Ex, or Dishonored.
- Microsoft is now losing this immense experience from both studios, even though they had previously made massive billion-dollar investments to significantly strengthen their first-party front.
What does the Xbox head say about these measures? In an interview with IGN Live, which took place around the Summer Game Fest, Phil Spencer explained the studio closures and layoffs:
“Ultimately, I have always said that I need to run a sustainably profitable business within the company that grows, and that means I sometimes have to make tough decisions that frankly aren’t my favorite decisions, but they are decisions that someone has to make.
We will continue to move forward. We will continue to invest in what we are doing with Xbox and build the best business we can that ensures we can continue to host shows like the one we just did.”
The online shooter Redfall was a significant setback for Arkane Austin and Bethesda.
What about Team Xbox after the acquisitions? In January 2024, there were significant layoffs at Microsoft, which also severely affected the gaming sector of the company. At the same time, the acquisition of Activision Blizzard King is already having a distinctly positive effect on Microsoft’s financial reports.
- According to the report for the second quarter of 2024 (via Microsoft) Team Xbox was able to increase its revenue by 61 percent compared to the second quarter of the previous year.
- The report for the third quarter of 2024 showed a 51 percent increase in revenue compared to the previous quarter (via Microsoft).
Strong line-up from Team Xbox
To ensure the numbers continue to rise in the future, Xbox needs strong first-party productions that motivate players to sign up for the Xbox Game Pass and/or purchase an Xbox console and achieve high sales figures.
The highlights from the incredibly strong Xbox Showcase at the Summer Game Fest alone show that Microsoft is extremely well positioned for the coming quarters:
- WoW: The War Within will be released on August 26, 2024
- The remake of Age of Mythology has a release date: September 4, 2024
- Diablo 4: Vessel of Hatred is coming on October 8, 2024
- Call of Duty Black Ops 6 will be released on October 25, 2024
- The Flight Simulator 2024 celebrates its release on November 19, 2024
- Indiana Jones and the Great Circle as well as Avowed are still set to be released in 2024
- Doom: The Dark Ages is expected in 2025
- Gameplay was shown for South of Midnight and Fable, both scheduled for 2025
- There were finally signs of life for State of Decay 3 and Perfect Dark
- A new installment for the popular action series was announced with Gears of War: E-Day
No updates were given on the first-party productions Clockwork Revolution, Project Mara from Ninja Theory, The Outer Worlds 2 from Obsidian, Marvel’s Blade from Arkane Lyon, Everwild from Rare, and the current project from Double Fine.
Moreover, there are developers who are partners with Xbox and will bring their games to the Game Pass starting from the release date. For example, think of the Civilization competitor from Oxide Games, Ara: History Untold, which is expected to be released later this year. How do you rate the line-up from Team Xbox? New Doom game excites even before release: “This is so damn Metal”
