Microsoft Announces Another Round of Devastating Layoffs: Employees Notified Via 'Gut Stab' Email
In a move prompting all manner of outcry and consternation, Microsoft told its staff last week that several studios of Xbox (which the tech titan owns) would be shuttering.
In short, while some talent may be re-dispersed within the Xbox first-party studio ecosphere, many staffers have been let go altogether amid those studio closures.
Notably, some of the prominent studios were culled — including the studio that created Xbox’s most interesting new intellectual property in years.
In an email obtained by multiple outlets, including the gaming news website IGN, Matt Booty, head of Xbox Game Studios, notified affected employees via email about the shutdowns.
“Today I’m sharing changes we are making to our Bethesda and ZeniMax teams,” Booty wrote. “These changes are grounded in prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games and beloved worlds which you have nurtured over many decades.
“To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success.
“This reprioritization of titles and resources means a few teams will be realigned to others and that some of our colleagues will be leaving us.”
Studios affected include:
- Arkane Austin (Austin, Texas): The studio in Austin, Texas, which was behind the critically maligned “Redfall” (as well as the critically beloved “Dishonored” series) will be completely closed.
- Alpha Dog Studios (Halifax, Nova Scotia): Another full closure. Most notably, this studio was behind the somewhat successful, free-to-play mobile game “Mighty Doom.” That game’s servers will be shut down Aug. 7.
- Roundhouse Games (Madison, Wisconsin): A different studio that helped on the “Redfall” flop. Staffers will be shuffled into ZeniMax Online Studios, which focuses on “The Elder Scrolls Online” game.
- Tango Gameworks (Tokyo, Japan): Yet another full studio closure, Tango was responsible for a number of hit series, such as “The Evil Within” franchise, and experimented with newer IP’s, such as “Ghostwire: Tokyo.”
Tango specifically was also behind the rhythm-based action game “Hi-Fi Rush,” a completely new and original IP for Microsoft that was showered with praise from all corners of the gaming world when it came out in 2023.
Booty stressed that Microsoft at least recognized the work put in by studios like Tango and Arkane Austin.
“These changes are not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things,” he wrote. “I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market.
“We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.”
The studios themselves confirmed the closures via social media.
Signup here https://t.co/wb1R4m4emj to receive details on how eligible players can receive this credit. pic.twitter.com/69Os17kpQ8
— Arkane Studios (@ArkaneStudios) May 7, 2024
— Tango Gameworks (EN) (@TangoGameworks) May 7, 2024
A quick glance at the responses to just those two posts alone shows that users are not thrilled with the way that Microsoft has handled its rapid expansion and acquisition.
Dinga Bakaba, the studio head of Arkane Lyon, Arkane Austin’s sister studio in Lyon, France, took things a step further with a raw X tirade.
This is absolutely terrible. Permission to be human : to any executive reading this, friendly reminder that video games are an entertainment/cultural industry, and your business as a corporation is to take care of your artists/entertainers and help them create value for you.
— Dinga Bakaba (@DBakaba) May 7, 2024
At one point in Bakaba’s screed, he outright called the studio closures a “f***ing gut stab.”
These abrupt layoffs come just a few months after Microsoft laid off nearly 2,000 employees in January.
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