In a recent interview, Xbox President Sarah Bond discussed the decision to close several studios acquired through Microsoft’s purchase of ZeniMax Media, including Arkane Austin (known for Redfall) and Tango Gameworks (known for Hi-Fi Rush). Fans, developers, and the media have criticized the closures, but there still isn’t a good reason given.
In an interview with Bloomberg (thanks IGN), Bond essentially said the gaming industry has seen little growth despite the release of popular games. She highlighted the increasing costs and longer development periods for big-budget games as a major challenge. Bond stated that Xbox considers the closure of studios as an essential move to steer through this “transition period” and guarantee the future success of the Xbox business.
This differs a lot from the reasoning given by a former Senior PR Manager. We go further in the linked article, but he basically said it was directly due to Game Pass not performing well and the buyout of Activision that caused these issues. It sounded like ZeniMax was a victim of a decision unrelated to it. It makes more sense than what Bond said, especially considering the awards Hi-Fi Rush won.
Despite the reductions, Bond highlighted Xbox’s goal of providing a wide range of gaming experiences. The goal is to sustain a platform that includes well-known series as well as smaller titles. She pointed to the Fallout TV show’s success as a good instance of how the company uses its purchases to grow franchises and generate interest in the games.
More on state of the Industry: As Other Studios Fall, Capcom Soars In Revenue; Monster Hunter May Be Cherry On Top
However, there was still a lack of clear information about how studios were chosen. When asked about why Tango Gameworks was closing despite Hi-Fi Rush’s apparent success, Bond’s answer didn’t really explain. She said that the way success is measured in the game industry is changing, and each studio and game needs to be looked at individually. It honestly sounds like no company is safe, even if they’re successful. That’s not the kind of environment you should want to create for your staff.
“You know, it’s always extraordinarily hard when you have to make decisions like that. I’ll go back to what I was saying about the industry. And when we looked at those fundamental trends, we feel a deep responsibility to ensure that the games we make, the devices we build, the services that we offer are there through moments, even when the industry isn’t growing and when you’re through a time of transition. And the news we announced earlier this week is an outcome of that, and our commitment to make sure that the business is healthy for the long term.”
Sarah Bond when asked directly about the decision to take down the studios
Reports indicate that there may be more to the closures than initially stated. According to Bond, the closure of Arkane Austin is not connected to the performance of Redfall. We can agree, as there were many steps to improve Redfall before the developer’s closure—now all they can offer is credits. Additionally, there are claims that ZeniMax was pressured to make significant cuts, potentially affecting studios working on projects requiring more investment, such as Tango Gameworks and its Hi-Fi Rush 2 proposal.
More on cuts: Microsoft Reportedly Won’t Stop Cutting Staff Just Yet
There are concerns about Microsoft’s overall health. The company is under increased internal scrutiny following the Activision Blizzard deal, adding further pressure to make difficult financial decisions. While Sarah Bond has given official reasons behind the closure of Bethesda Studios, it felt dodgy and inadequate. It feels like there’s a lot behind the scenes not said. The full effects of these decisions and the future of Xbox will likely become clear as time goes on.
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