Earlier this week Microsoft closed acclaimed studios Arkane Austin and Tango Gameworks. A couple of Xbox co-founders spoke out about this decision.
Arkane’s last game, Redfall, was a commercial and critical failure that was pushed out prematurely. It’s yet to be fixed.
Tango Gameworks just released Hi-Fi Rush to a great reception last year.
This closure comes only a few years after both studios were purchased by Microsoft. However, it falls in line with the recent layoffs after the COVID-19 pandemic.
Interviewed by IGN, a couple of Xbox founder discussed how the company is “Not Xbox anymore, it’s Microsoft gaming.”
One of the founders went on to discuss his conversation with other founders, and how they all came to the conclusion that “It’s no longer Xbox, it’s Microsoft gaming.”
Since Xbox introduced Game Pass back in 2017, their profit margins grew larger up until two years ago.
Since the pandemic, Game Pass sales have failed to grow, forcing the company to close some of it’s recent acquisitions.
Microsoft also went on to buy two giants of the industry in Activision and Bethesda Softworks. Each company is around the same size.
A founder went on to discuss that the merger led to their being “Too much surface area[…]Microsoft never really finished [the] integration with Bethesda.”
After Microsoft made “hand-over-fist” with the introduction of Game Pass, the purchase of Bethesda and Activision seemed like a good move.
However, the choice of by Activision has put the company into finanical strain, forcing them to close other studios they own.
The Games industry has been through serious changes in the last few years. Microsoft and Xbox being prime examples of this.
No longer is it about the developers, focus has been readjusted to boosting profits for those in charge.
It’s likely Microsoft will have to continue to close more studios to make up for the money they have lost.
Featured image credit: Xbox.com