As layoffs near for Xbox, with studios like Compulsion Games, Double Fine Productions and Ninja Theory reportedly on the chopping block, a new studio has seemingly entered the discussion: Undead Labs, makers of State of Decay.
GamesBeat’s Dean Takahashi named it while discussing the above studios and how it could also be saved if a buyer emerged. If not, 110 employees could face layoffs. The report is all the more damning because, like Ninja Theory’s Senua, Xbox leadership has marketed State of Decay 3 as a major upcoming title. It even has closed alpha tests ongoing.
Accounting for all of the above, the total number of layoffs could total about 435. Takahashi also mentioned “percentage layoffs” at Blizzard Entertainment and Bethesda, adding to previous reports that the latter is in trouble. Other reports indicated that employees not working on The Elder Scrolls or Fallout would allegedly be made redundant.
Of course, the Communications Workers of America, which represents 3,500+ employees at Microsoft since 2002, decried the same. “Multiple reports in the press indicate that in the days ahead Microsoft may initiate layoffs across its Xbox division, the very people who build its best-selling games. We’re here to say this plainly: those workers will not be traded as disposable,” said CWA District 9 vice president Frank Arce.
But with Xbox CEO Asha Sharma committed to this big reset for the brand, it may not ultimately matter. Given recent mass layoffs at Bungie and the ongoing strike at Quantic Dream, the games industry is set for some dark days.
