Microsoft’s Xbox To Shut Down Several Gaming Studios: Know Why

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New Delhi: Microsoft’s Xbox plans to shut down several gaming studios which also includes the well-known Arkane Austin. This comes as a part of a broader restructuring amid a slowdown in the gaming industry. Other studios facing closure include Tokyo-based Tango Gameworks which is known for creating “Hi-Fi Rush” and Canada-based Alpha Dog, as revealed by Matt Booty, the head of Xbox Game Studios. The exact number of employees affected by these closures has not been disclosed, as per report by Reuters.

Further, Matt Booty explained that the decision to close several studios will help streamline operations by reallocating resources to support Xbox’s game portfolio and foster new intellectual property. This "reprioritization of titles and resources" aligns with Microsoft's commitment to innovation and future growth in the gaming sector, according to Matt Booty. ()

Despite these closures, Microsoft’s Xbox content and services division reported a significant 62 percent increase in the third-quarter revenue last month which was mainly driven by the acquisition of Activision Blizzard. Take-Two Interactive also disclosed plans to shut down two subsidiary studios as part of its restructuring. Earlier this year, Microsoft began layoffs which impacted 1,900 employees across Activision and Xbox. ()