The layoffs of several employees, including former Xbox Culture Lead Jessie Thomas, represent troubling news for the industry.
XboxThe series of layoffs continues across the video game industry. The spate of layoffs comes after former Xbox Culture Lead Jessie Thomas learned she was laid off while on vacation.
Xbox Layoffs Continue: Signs of Recession in Video Game Industry
Although he doesn’t cite any sources, industry analyst Tom Warren claims that a wave of more layoffs is imminent. Microsoft’s recent closures of studios like Alpha Dog Studios and Tango Gameworks are not a promising picture for the company’s portfolio. The process, which began in January and continued with the layoffs of 1,900 employees, occurred before the closure of Bethesda subsidiaries.
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For Xbox fans, the year started with a promising Xbox Showcase, but now the spotlight has shifted to games largely developed by outside studios and the potential impact of layoffs on projects like Project Latitude. Bloomberg’s Jason Schreier has made this clearer by hinting at more layoffs as part of a “widespread cost-cutting effort that’s still unfinished.” Schreier underscores the accuracy of Tom Warren’s reporting.
Xbox’s strategies, as well as Microsoft’s attempt to buy Activision, have so far failed to deliver the expected results, which could change with Black Ops 6 being a direct download to Game Pass. However, this has been called into question by recent studio closures, despite some success with mass acquisitions of smaller studios. These closures are causing concern for creative individuals in the industry to be able to continue their work.