Microsoft’s Xbox Cuts Aren’t Over Yet, Report Says

In recent days, the gaming industry was sent reeling by the sudden closure of four studios under the Xbox banner – Tango Gameworks, Arkane Austin, Alpha Dog Studios and Roundhouse Games. It was a shock move that few saw coming, but according to a recent report, it seems that more layoffs and cuts are on the way, with some developing behind the scenes as we speak.

In a report published by Bloomberg, it was claimed by sources close to the matter that Xbox has been offering ‘voluntary severance agreements’ to ZeniMax employees, attempting to ‘buy them out’ of their contract and see them depart the company. In the report, it was referenced that producers and QA testers are being targeted.

Furthermore, Bloomberg’s sources at Xbox revealed that ‘more cuts are on the way’.

It hasn’t been officially confirmed why each of these studios were closed down, but cost-cutting measures are at the top of the list when it comes to explanations. In one claim, it was suggested that the main factor behind the closures of Tango Gameworks and Arkane Austin was that both studios were looking to expand and were pitching new projects.

Microsoft has been one of the biggest contributors to the last year and a half of layoffs and turmoil in the gaming industry, and the tech titan isn’t done yet.

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