As was reported as far back as last month, and reiterated just a week ago, Microsoft has begun its latest culling and if the reports are accurate layoffs could be substantial, including entire studios potentially being in danger.
I’ll update this article where and when I can as news continues to roll in about impacted studios and departments.
UPDATE 2: The Initiative has been shut down entirely. Project Dark was also cancelled.
Turn 10 Studios, the creators of Forza Motorsport, has reportedly lost half of its staff.
UPDATE: Everwild has reportedly been cancelled at Rare, as well as an unannounced MMORPG at Zenimax Online Studios.
ORIGINAL STORY: Zenimax and King have been the first to feel the wrath of Microsoft’s budget cuts. Windows Central reports that sources have told them that Zenimax’s media marketing teams have been hit, although exact numbers are unknown.
Meanwhile, Bloomberg claims that 10% of of King, around 200 employees, have been laid off
An internal Email sent by Xbox head-honcho Phil Spencer has been passed to multiple outlets, and it seems to hint that certain departments or studios may be shuttered entirely: “To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness.”
Just days ago, I also reported on George Broussard saying that people had told him that Xbox staff “fear entire studios” being shut down. At the same time, The Verge published an article which stated Turn 10 staff were bracing for cuts.
Phil goes on to address that these cuts come during a time when Xbox apparently has more players, games and gaming time than ever.
“I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before,” Phil says. “Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously.”
He claims that this stronger position is due to the hard decisions made previously. Keep in mind, this is the 4th round of layoffs at Microsoft and Xbox within just 18 months. He then goes on to aknowledge that they are only where they are due to the hard work of those same people, in what feels like a blatant contradicition.
“Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved.”