TECH - Microsoft Shakes Up Xbox Division Closes Renowned Studios in Major Cost-Cutting Move | Benzinga
Microsoft Corp (NASDAQ:MSFT) initiated the unplanned closure of several video-game studios within its Xbox division as part of an ongoing broad cost-cutting strategy.
According to sources familiar with the plans, this week, Xbox offered voluntary severance agreements to producers, quality assurance testers, and other staff at ZeniMax, which Microsoft acquired in 2020 for $7.5 billion. Additional cuts are likely across the Xbox organization, Bloomberg reports.
Employees were surprised by Tuesday’s abrupt closure of three Xbox subsidiaries and the absorption of a fourth.
Among those closed was Tokyo-based Tango Gameworks, known for the acclaimed action game Hi-Fi Rush, which was pitching a sequel.
Xbox president Matt Booty praised Hi-Fi Rush during a town hall meeting on Wednesday.
Booty mentioned that the company’s ...