According to a recent article from Bloomberg, Xbox is planning more cuts to their gaming division in the future. Additionally, they are considering raising the prices of Game Pass Ultimate. The news comes just a day after Xbox shut down Tango Gameworks, Arkane Austin, and more.
Over the last few months, several major companies have laid off numerous workers from across their entire gaming divisions. Examples include Microsoft, Bungie, Embracer Group, Behaviour Interactive, Riot Games, Sega, Sony, EA, Take-Two, and more. Unfortunately, the amount of layoffs across the industry will likely increase as the year continues.
Xbox Considering Raising Game Pass Prices Despite Recent Studio Cuts
A recent article from Bloomberg has shed some light on the consequences of Xbox shutting down Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Studios. Tango Gameworks, responsible for Hi-Fi Rush, were apparently in the process of pitching the game’s sequel. Further, based on a previous leak, it is likely that they were also developing a Ghostwire: Tokyo sequel.
The leak also hinted that Arkane Austin would be developing Dishonored 3. This is supported by the Bloomberg article, which states that, after Redfall, “Arkane had been looking to return to its roots by pitching a new single-player “immersive sim” game, such as a new entry in the Dishonored series, according to the people familiar.” According to the article, Xbox is also considering raising Game Pass Ultimate prices.
As a whole, Xbox has provided very little concrete reason as to why they shut down all of the studios mentioned above. At one point, Matt Booty, head of Xbox Game Studios, said that “company’s studios had been spread too thin — like ‘peanut butter on bread’ — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said.”
Whether or not these statements are true is currently unknown, especially considering Xbox’s recent questionable comments on how Hi-Fi Rush “was a break out hit for us and our players in all key measurements and expectations.” In the coming months, expect to hear more about Xbox potentially shutting down more companies and raising their Game Pass prices even higher.
