In light of recent closures within the video-game industry, Microsoft’s Xbox division is making moves to implement cost-cutting measures, as reported by Bloomberg. Here are the key details:

– Xbox has started offering voluntary severance agreements to staff members, including producers and quality assurance testers at ZeniMax, acquired by Microsoft in 2020.
– Three Xbox subsidiaries have been closed, with Tango Gameworks in Tokyo being one of them, despite its success with the game Hi-Fi Rush.
– The decision to shut down these studios was part of a broader effort to reallocate resources within the division and focus on fewer projects for better outcomes.
– Jill Braff, head of ZeniMax studios, emphasized the challenges of managing multiple studios worldwide with limited resources and expressed hope for streamlining operations.

The closures at Xbox are part of a larger trend in the video-game industry impacted by economic shifts post-pandemic growth. Despite recent expansions through acquisitions like ZeniMax and Activision Blizzard, Microsoft’s gaming division is facing increased scrutiny from company leaders.

While efforts have been made to enhance Xbox Game Pass subscription service through studio acquisitions, growth has slowed due to consumer preferences for traditional game purchasing models and free-to-play options.

Stay tuned for further updates on how these changes will shape the future of Xbox’s gaming landscape.