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XBOX SHAKEDOWN: MICROSOFT SHUTS FOUR STUDIOS - INDUSTRY BACKLASH
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XBOX SHAKEDOWN: MICROSOFT SHUTS FOUR STUDIOS - INDUSTRY BACKLASH

May 08, 2024 10:59 AM

The gaming industry has been rocked once again by the announcement of studio closures, with Microsoft taking the headline for shutting down four of its subsidiary studios. The closures include notable studios such as Tango Gameworks, known for Hi-Fi Rush, and Arkane Austin, responsible for the game Redfall. While Arkane Studios' Lyon branch remains unaffected, the director issued a statement emphasizing the importance of caring for artists within the industry.

Xbox chief Matt Booty justified the closures as necessary to prioritize high-impact titles and continue investment into Bethesda's array of blockbuster games. The news comes despite Microsoft's recent financial success, announcing a 17% revenue increase. Details on the number of employees affected by the layoffs are not disclosed, but the gaming community has expressed dismay and criticism over the decision. Notably, Redfall was slated for further updates and DLC which are now canceled, though the servers will remain online.

Gaming professionals and studio heads have responded negatively to the news, citing concerns that even large companies are not immune to sudden changes and layoffs, with Moon Studios' CEO Thomas Mahler remarking on the importance of independence in light of such industry shake-ups.

What impact will the Microsoft studio closures have on the gaming industry?

The closure of these Microsoft studios will likely lead to job losses and may disrupt the development and support of their respective games. It could also have a ripple effect on the industry, instigating discussions about job security, the sustainability of studio acquisitions by larger entities, and the prioritization of projects within leading gaming companies.

Background: Tango Gameworks, the studio behind the recently acclaimed game Hi-Fi Rush, has been well-regarded for its creative flair and unique game design. The studio's closure comes as a surprise to many, given their positive reception in the gaming community. On the other hand, Arkane Austin has established a strong reputation with immersive games like Dishonored. The news of its closure raises questions about the future of similar game franchises and the direction of corporate decision-making in the gaming sector.



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Casey Loh

Casey Loh is a tech-savvy writer who specializes in the intersection of gaming and technology. With a background in computer science, Casey brings a technical lens to her reviews, breaking down the nuts and bolts of game engines, graphics, and AI innovation.

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Mr. Bison Mr. Bison commented on: 2024-05-08 11:30:03
Man, the Microsoft studio closures are hitting the gaming industry hard. It's a tough blow for the developers and the games in progress, and it's definitely sparking some important discussions about job security and corporate decision-making in the gaming world. Let's hope the affected employees land on their feet and that the industry can learn some valuable lessons from this.
Stimpy Stimpy commented on: 2024-05-08 11:24:02
Man, these studio closures are tough news for the gaming community. It's a bummer to see talented teams affected by these decisions. Hopefully, those affected will find new opportunities, and the industry will take a closer look at supporting its creative talent.
N3rdo N3rdo commented on: 2024-05-08 11:18:03
Man, the Microsoft studio closures are a real gut-punch for the gaming industry. It's disheartening to see talented developers affected and game projects put on hold. This news definitely raises important questions about the impact of corporate decisions on game development and the future of beloved franchises.
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