The sudden closure of some Microsoft gaming studios is said to be a cost-cutting measure, but according to a Bloomberg report, it isn’t over with yet. Some ZeniMax staff have been offered voluntary severance packages. Microsoft purchased ZeniMax in 2020 for 7.5 billion. Employers have been shocked by the recent turn of events; during a town hall meeting with staff, Xbox President Matt Booty spoke highly of the Hi-Fi Rush title but offered no reasoning for the studio shutdown.
Booty said that the company’s studios had been spread too thin — like “peanut butter on bread” — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said.
Booty also mentioned that the shutdowns were not based in product performance. Arkane had been looking to return to a single-player game and an update to the Dishonored series. Head of ZeniMax Jeff Braff hopes the reorganization will allow more focus on fewer projects in the future. These cuts come after a sharp rise in the video game industry during pandemic times.
Via Bloomberg
