With recent reports of Xbox getting ready for layoffs and studio closures in July heating up, a new report indicates that Bethesda-owned studios might also be targeted. Original co-founder of 3D Realms and Apogee and developer on Duke Nukem 3D, George Broussard, has taken to social media to reveal that layoffs across Zenimax have already begun.
While neither Zenimax nor Microsoft have made any official announcement regarding the matter, Broussard cites unnamed sources, saying that the job cuts and studio closures might go much deeper than many had previously believed.
“Getting word that layoffs at Zenimax has begun. Heard rumblings recently that the cuts may be much deeper than you expect. Buckle up!”
This means that studios like id Software, Bethesda Game Studios, and id Software are likely going to be hit by a round of layoffs as well. Whether or not there are plans for studio closures across Zenimax, however, remains unknown.
Responding to another post indicating that anyone who isn’t actively working on Elder Scrolls and Fallout projects was being cut from the company, Broussar said, “Oh, is that public now? That’s exactly what I heard a few days ago. Guess we’re about to see.”
If these layoffs have already started, employees are likely just being notified about whether or not they are being cut for the time being. Microsoft will likely continue to wait until after its current fiscal year ends on June 30th before the planned layoffs and studio closures start kicking in.
Among the studios seemingly being targeted for closure is Hellblade franchise developer Ninja Theory. A recent report indicated that Microsoft had planned to shutter the studio even before its newest project – Senua – was showcased during Xbox’s recent event. The report noted that the trailer was shown in an attempt to attract investors that might help Ninja Theory spin off into an independent studio.
Double Fine – the studio behind Kiln and Keeper – and Compulsion Games – known for South of Midnight – are also believed to be targeted for closure. However, reports have indicated that both studios, along with Ninja Theory, have begun negotiations with Microsoft to go independent rather than just being shut down.
According to recent reports, these decisions are being made according to Xbox CEO Asha Sharma’s plans to mitigate the revenue losses that have been faced by the entire division. In a recent post on Xbox Wire, Sharma, along with CCO Matt Booty, discussed the falling revenue coming in despite $20 billion being spent on investments in content, platform, and hardware subsidies. “Going forward, this cannot continue,” they wrote.
Xbox is also facing major troubles on the hardware side of things, since the recent shortages in memory and storage modules have led to the company’s expenses in making Xbox Series X/S consoles to skyrocket. While it has tried to mitigate this by raising the console’s price, the company has also notably been unable to keep store shelves stocked despite there already being a demand for the consoles.
Leading up to these layoffs, former PlayStation executive Shawn Layden has said that Xbox shows a “basic misunderstanding” of how the gaming industry works.
