Xbox lays off major studios including Double Fine Arkane and more
The gaming world is bracing for some major shifts as Microsoft unveils what appears to be a significant “reset” of its Xbox business. Following weeks of uncertainty, the company has made tough financial decisions, announcing substantial workforce reductions and strategic studio separations.
Gaming division CEO Asha Sharma confirmed that Microsoft plans to lay off 3200 employees over the next fiscal year. This restructuring will begin immediately with around 1600 redundancies, signaling a major realignment of priorities within the company.
Beyond the corporate restructuring, the move affects some of the most recognizable and innovative studios in the industry. Microsoft is parting ways with five high-profile teams, clearing the way for new directions across the gaming landscape.
Among the departures are the developers of Psychonauts, led by Double Fine, and the creators of State of Decay, Undead Labs. Furthermore, the studios behind Senua, Ninja Theory, South of Midnight, Compulsion, and Dishonored, Arkane, are also being separated from Microsoft.
The fate of these departed teams is proving to be varied. Compulsion and Double Fine are reportedly heading back into the independent sphere, seeking new creative outlets for their work. Meanwhile, Ninja Theory and Undead Labs have successfully secured unnamed new ownership, finding fresh paths forward under new management.
As for Arkane, the situation remains in flux. The studio’s leadership is currently engaged in negotiations with a works council of employees to determine various strategic options moving forward. It remains to be seen how this process will ultimately shape the future of those creative endeavors.
Buy on Amazon
Credit
