2024 had begun as a sequel to 2023, but an even darker one, with another round of cuts leaving behind an even more dire situation. On the day after Eve, a giant delta of gloom (MICROSOFT, net income of $21.9 billion on a $1.3 trillion company) closed three developers under its Xbox Game Studios (XGS). It didn’t seem to matter what niches each studio carved: Arkane Austin, Tango Gameworks, Alpha Dog Games.
It’s an ugly paradox: on the one hand, MICROSOFT is seeing sales and profit soar past expectations and just announced a massive $69 billion acquisition of the video game giant Activision Blizzard King; on the other, the company is closing studios whose games helped drive the very success that derived those financial benefits.
What was once sold as a vision where experts were balanced by creative risk-takers, seems at risk of cracking in these gales as projects such as Hi-Fi Rush are allowed to cover but not protect their makers against the layoffs.
In response to this news, game developers at affected studios and outside of them have spoken publicly about being disheartened and disappointed.
That those closures symbolise the end of something more than just specific projects, that they embody an anxiety about the future of games as a sheer thing of creativity and imagination.
In this crucial moment for the industry, only time will tell what the prospects are for companies like Ninja Theory and Obsidian Entertainment, and for other studios under the Xbox Game Studios banner.
MICROSOFT has so many tentacles that it is among the largest technology and gaming companies. Its market capitalisation is a direct measure of its vast influence.
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Recent moves by MICROSOFT have shaken the gaming world, raising important questions about the impact of corporate giants on gaming development. While the community adapts, Gizmogo provides a solid foundation for transition.
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