Mass layoffs and studio sales mark a new black day for the Xbox community.
Microsoft is laying off 4,800 employees. The Xbox division is particularly affected. In addition, a total of four studios are being sold: Double Fine, Compulsion Games, Ninja Theory and Undead Labs.
Xbox separates from four studios
According to a report from The Verge, Double Fine (Psychonauts 2) and Compulsion Games (South of Midnight) will become independent again. Ninja Theory (Hellblade) and Undead Labs (State of Decay) are also sold. In both cases, the games Senua and State of Decay 3 should definitely still be released. Xbox recently showed both games during a showcase.
It also affects employees across all major Xbox studios. The Verge writes here that Bethesda studios in particular will lose many employees. Xbox boss Asha Sharma explains in an internal memo that first-party games that have already been announced should continue to appear. But that doesn’t protect the people behind the games from the layoffs (source: The Verge).
What does that mean for you?
The layoffs and studio sales are also bad news for Xbox gamers. Senua and State of Decay 3 are still scheduled to be released, but in the crisis the industry is currently in, nothing is guaranteed (especially if Microsoft doesn’t have the budget).
If you like the smaller games of Double Fine or South of Midnight, things get even worse. The studios could also have success with new indie games, but here too there remains a lot of uncertainty.
Finally, the changes are also likely to affect Xbox Game Pass. If fewer studios work directly under Xbox, their games may no longer come to Game Pass directly at launch and may not remain in the subscription forever.
Things get even worse
Xbox is scheduled to undergo further restructuring by July 2027, which will involve even more layoffs. Arkane Studios (Dishonored) could also be at risk. However, Microsoft has not yet made a final decision on this.