Just days ago, reports began to spread that Microsoft is planning more cuts across its business. According to these reports, the layoffs will come as part of a major restructuring, with Xbox being in the line of fire. Now, a reliable industry insider is saying entire studios may be at risk.
George Broussard shared what he had heard over on BlueSky, saying “I’m hearing internal developer stuff where people at most studios are anxious and worried.”
Before we carry on with Broussard’s claims, let me provide some insight into the man so you can determine how much trust you want to out into his words.
George Broussard is a veteran game developer best known as the co-creator of the Duke Nukem series and co-founder of Apogee Software (later 3D Realms), where he played a pivotal role in pioneering the shareware distribution model and producing numerous influential PC games. With credits on over 70 titles, including Duke Nukem 3D and Shadow Warrior, Broussard has decades of hands-on experience as a designer, producer, and studio leader, giving him deep industry insight and credibility regarding insider developments and trends. These days, he’s typically found in the indie space, or providing insight and commentary on social media.
In other words, Broussard knows a lot of people, so I’m confident that he has a lot of sources for this information. Of course, that doesn’t help verify what the people themselves are telling him, or whether it might be exaggerated by anxiety over potentially losing their job etc.
According to Broussard, anywhere from 1000-2000 jobs are expected to be lost. Approximately 10,000-12,000 people are currently working under Xbox, meaning a substantial percentage face losing their jobs.
Broussard also says he has heard that “entire studios may be shuttered.”
That raises the question of which studios could be at risk. Based on The Verge’s report linked at the beginning of this article, it’s Central Europe where the restructuring is taking place. Xbox sales, marketing, and support offices all have a heavy presence there, so they are the most likely targets, in my estimation, and it’s possible that what Broussard heard may be a slight miscommunication, with “studios” also meaning departments in those areas.
Central Europe includes id Software Frankfurt, King Berlin, Elsewhere Entertainment, Infinity Ward Poland, and ZeniMax Online Studios Hungary.
Out of that list, I’d imagine Elsewhere Entertainment would be at the most risk, simply by virtue of being new. The studio was founded in 2024 with the aim of producing a brand new triple-A IP, and is rumoured to be working on an open-world project. It would be cruel to shutter them so soon after being founded, but that sort of thing has happened many times before.
id Software Frankfurt is a smaller branch of id and is mostly focused on the technology side of things, such as the id Tech engine that powered DOOM: The Dark Ages. I don’t think they would be facing a full closure, though, unless Microsoft has really lost faith in them following The Dark Ages which is being reported as having very low sales. Of course, Game Pass is Microsoft’s big focus these days.
It’s also worth remembering that with Microsoft now focusing on metrics like player counts rather than pure sales due to Game Pass, what we outsiders view as successful and unsuccessful may not reflect what Microsoft’s beliefs.
Likewise, Infinity Ward Poland is also a R&D focused group that supports the Call of Duty pipeline. A major point in its favour is its continued growth, as reflected in Polish business filings.
ZeniMax Online Studios Hungary is another support studio, one that works on The Elder Scrolls Online and is reported to be helping Zenimax with on an unannounced triple-A project.
King Berlin seems an unlikely choice. While new, it acts as a European hub for the mobile development company, and King keeps bringing in cash, although it only accounts for about 7% of Xbox’s total revenue. For example, Activision Blizzzard brought in just over $7 billion in revenue last year. Cuts could be made at King, but I don’t think they are shuttering the office in Berlin.
In short, from my limited perspective it’s difficult to judge what studios could be at risk. If we extend our view outside of Central Europe, there are a few I would consider being in the danger zone.
Time will tell. Hopefully, the cuts will not be as brutal as is being suggested.