"Our business today is not healthy", Xbox CEO Asha Sharma wrote in an email to Xbox employees today, with this also being shared on X (formerly Twitter).
View oEmbed on the source websiteSharma reveals that Xbox Game Pass, multiple acquisitions and going multi-platform was a "bet" to improve things but that it has not panned out as hoped for, with many of these studios being shuttered or sold on.
Mercifully, it is not all bad news, as today it was revealed that Ninja Theory (Hellblade) and Undead Labs (State of Decay) have been sold to "new ownership", but Senua and State of Decay 3 are still being worked on with Xbox, with Sharma saying that both studios have "funding to complete and grow Senua and State of Decay 3".
On the horizon, Arkane (Dishonored, Blade) is said to have entered "consultation with its Works Council to review potential strategic options", which hopefully means they will find a home somewhere.
View Green Video on the source websiteInterestingly, Sharma says that "None of our first party publicly announced games or projects are being cancelled as part of these reductions," which would suggest that there could have been undisclosed games that have been cancelled. Depending on how disgruntled the staff involved feel, we may see some leaks regarding this down the road.
This is being dubbed as a "reset" by Sharma, and by all accounts, indicates that Xbox is going to focus on big games and services, such as Gears of War, Call of Duty, The Elder Scrolls, Fallout, Fable, Forza Horizon, Halo, mobile games and Minecraft, whilst divesting smaller studios that are getting crushed within the corporate structure.
Immersive sims, such as those Arkane have historically made, are inherently more niche than the Call of Duty’s of the world, and so hopefully will be able to find an audience on its own terms, rather than being assigned projects such as Redfall, which resulted in the closure of Arkane Austin.
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