technology
Microsoft plans Xbox layoffs and studio closures next week
Microsoft will announce layoffs in its Xbox division on July 6, with sources indicating at least five studios may close or spin off. The moves follow a June 10 internal memo citing component price increases and an overextended studio system.
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Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Microsoft will announce layoffs across its Xbox division on July 6, according to multiple reports citing people familiar with the plans. The cuts are expected to include studio closures or spinoffs and the cancellation of some games. " The memo cited a 3 percent accountability margin, higher component prices for consoles, and an overextended studio system.
Studio and game changes Sources told The Verge that Microsoft is weighing the closure of at least five studios, including the team developing Marvel's Blade. The same reporting indicated the Blade project could be canceled. IO Interactive announced staff reductions after an external partner ended work on its Project Fantasy game, which Microsoft had been expected to publish.
The studio said it remains committed to completing the title. Ninja Theory, the studio behind the Hellblade series, was closed earlier in June. Several other Xbox studios are in negotiations to spin off as independent entities.
Hardware pricing Microsoft raised prices on Xbox consoles effective August 1.
The 512GB models increased by $100 and 1TB models by $150, citing more than a 2.5-times rise in memory and storage costs. The company said it had hoped to avoid further increases after an earlier round of price hikes last October.
