Xbox shuts down four gaming subsidiaries

Microsoft’s gaming division Xbox is shutting down four subsidiaries, including Arkane Austin.

Updated - May 08, 2024 02:54 pm IST

Published - May 08, 2024 12:38 pm IST

Microsoft’s gaming division Xbox is shutting down four subsidiaries.

Microsoft’s gaming division Xbox is shutting down four subsidiaries. | Photo Credit: AP

Microsoft Corp’s Xbox gaming division is shutting down four subsidiaries, including the esteemed game studio Arkane Austin, Reuters and IGN reported.

Studios like Tango Gameworks, known for ‘Hi-Fi Rush,’ and Alpha Dog, based in Canada, will also face closure, with some employees facing layoffs, according to a memo from Matt Booty, head of Xbox Game Studios. As of now, Xbox has not disclosed the exact number of employees affected by the closures.

Roundhouse Games will integrate into ZeniMax Online Studios, the creative force behind The Elder Scrolls Online, reported IGN. As part of a communication email sent to employees on Tuesday, Booty emphasised a strategic shift towards prioritising impactful titles.

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He emphasised Bethesda’s continued significance within Xbox, highlighting forthcoming titles such as a Starfield expansion and a new Indiana Jones game slated for release later this year.

Data from research firm Newzoo suggests that PC and console playtime in 2024 has reduced since the lockdown period.

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