May 9th 2024.
It seems that there may still be some trouble brewing at Xbox, even though they have already undergone significant job cuts. According to insiders, Microsoft is considering even more price increases and a decision to not include the popular game Call of Duty on their Game Pass service.
The recent closure of multiple game studios at Xbox was not a complete shock, as it is common for this to happen after a large-scale acquisition. However, the shuttering of well-known studios like Tango Gameworks and Arkane Austin hints at a larger shift in strategy for Xbox.
It has become apparent that Game Pass and other game subscription services have not taken off as anticipated by Microsoft. Two reliable sources claim that Xbox is now refocusing their efforts to publish more games on other platforms like PlayStation and Switch, instead of keeping them exclusive to Xbox.
The timeline for these changes is not clear, but rumors suggest that the upcoming release of Senua's Saga: Hellblade 2 may already be planned for multiple platforms. However, there are doubts within Microsoft that this game will be successful, even with a multi-platform release, which is not a promising sign for Ninja Theory, the game's developer.
Earlier this year, when rumors first surfaced about Microsoft making their games available on other platforms, there was talk of disagreements within the company. Some were in favor of the idea, while others were against it. In the end, a compromise was reached with the announcement of four lower profile titles being made available on other platforms. However, it seems that the argument for multi-platform releases is now winning, especially with the slow growth of Game Pass.
According to sources at The Verge, there is also debate within Microsoft about increasing the price of Game Pass Ultimate and whether or not to include new Call of Duty games on the service on launch day. This poses a problem for Microsoft, as the slow uptake of Game Pass has not only affected their revenue but has also discouraged non-subscribers from paying full price for new games.
Furthermore, The Verge suggests that even Xbox Game Studios may face cutbacks, which could impact popular studios like 343 Industries and Double Fine. However, it should be noted that these are just rumors at this point, and nothing is set in stone.
Bloomberg's Jason Schreier also reports that there have been warnings of more job cuts in the future, and employees at Bethesda's parent company, ZeniMax, have already been offered voluntary severance packages. Tango Gameworks, which was in the process of developing a sequel to their popular game Hi-Fi Rush, was shut down without any explanation given to the employees, indicating that there may be more to this decision than meets the eye.
According to Schreier, Xbox Game Studios' Matt Booty stated that the studios were spread too thin, and his solution was to lay off hundreds of employees in order to "free up resources elsewhere." It is also reported that Arkane Austin was not closed due to the failure of their game Redfall, but rather because they wanted to hire more staff for their new project, possibly a new installment in the Dishonored franchise.
The general consensus within Microsoft seems to be that they need to focus on fewer projects, which may seem strange considering Xbox's limited release schedule this generation. However, this is all part of the aftermath of a major acquisition, and it is expected that there will be increased scrutiny from higher-ups at Microsoft, who are eager to see a return on their investment.
Unfortunately, this uncertainty and restructuring at Xbox will not only affect the company but will also have a ripple effect on the gaming industry as a whole. It remains to be seen how these changes will pan out, but it is clear that there are major shifts happening within Xbox, which will undoubtedly have a significant impact on the future of gaming.
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