More Shutdowns from Xbox
In another unwelcomed move, Microsoft announced that it was shutting down several Bethesda studios to reallocate resources to other projects. The move to shut down four studios further adding to the already high layoff count Microsoft is stacking has made many give the tech giant the much-deserved side-eye.
In less than a year (nine months to be exact) Microsoft has laid off over 16,000 employees overall. Starting the year around 1900 from the recently acquired Activision-Blizzard. Seeming determined to top their numbers Microsoft closed four more studios from their other acquisition Bethesda. Arkane Austin, Alpha Dog Studios, Roundhouse Games, and Tango Gameworks creator of the hit game Hi-Fi Rush all hit the chopping block and were sent unceremoniously packing.
What Studio Closures Mean For Xbox
Nothing good that’s for certain. Microsoft is notorious for shutting down projects without a second thought when they don’t see massive returns for their tiny investment (Zune and Mixer anyone?) They showcase the Xbox ecosystem as being the future of gaming, with a strong focus on cloud gaming which is an appealing and somewhat welcomed aspect. Their actions and treatment of their developers paint a very different picture. As someone on X posted “Microsoft is closing more Studios than they are putting out games.”
The promise of more exclusive IPs and added features has yet to be fulfilled. Several of the games that were promised to be expanded on with DLC and free updates were tied to the studios that are not shut down effectively rolling back such promises. And with almost no new games on the horizon, it makes you wonder, what exactly were they promising? Closing more studios not only makes more games less likely but also limits how much support current games will receive as teams are pulled from one title to another almost immediately. Games will either launch in a buggy mess, go unfinished, or simply never see the light of day.
Game Pass Continues To Hurt The Industry
Ever since its introduction in 2017, Microsoft Xbox has pushed for gaming to become a subscription-based service while simultaneously trying to remove the ability for gamers to own their games. The day one launch was admittedly game-changing at its inception as it allowed game pass holders to play brand new games the day they released at the low cost of their pass subscription.
However, such a model is not without its drawbacks. Game sales suffer drastically as subscription holders no longer see reason to fully purchase games when they can double their temporary library for the price of a coffee. While not wanting to admit this on the surface, Microsoft has been bleeding money as unlike their competitors Sony and Nintendo who release sales numbers, Microsoft instead opts to showcase subscriber numbers. The launch of Starfield is a perfect example of this as only an estimated number of sales can be found. It also makes Phil Spencer's intentionally ambiguous mention of Xbox leaving gaming in 2027 seem even more likely as Microsoft continues to acquire major studios only to shut them down little by little as we get closer to the year.
The Downside of Developer Acquisitions
The studio acquisition war began when Microsoft first purchased Bethesda Studio in 2021 for $7.5 billion, leading to the competition to start acquiring studios for exclusive rights. However, it seems that while boasting the bigger spending wallet Microsoft can not handle managing the studios it insists on buying outright leading to current situations. It could also be viewed as Microsoft buying major studios to prevent their competitors from being able to conduct business with them without getting some form of kickback, and if that fails they can easily shut down the studios preventing them from ever being available again.
These major acquisitions are not healthy for the gaming ecosystem as developer jobs are no longer guaranteed once they are purchased and projects already in development are more likely to be canceled before gamers get a chance to play them and are instead replaced with subpar cash grab titles with the intent of turning a profit over gamer experience. It is both an amazing and terrible time to be a gamer.
For more on this topic check out our latest podcast episode Microsofts Uncertain Future in Gaming
