Xbox Studio Closures and Mergers: A Grim Week in Gaming
This week, the gaming industry was hit with the news of Xbox shuttering three of its internal game studios and merging a fourth with an existing team. Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Studios all faced closure or merger. This is particularly disheartening since Tango Gameworks had just released the BAFTA-winning game Hi-Fi Rush, which was widely praised. It’s worth noting that both of the Prey studios were closed in one fell swoop.
Unfortunately, this news comes at a time when the outlook for the games industry was already looking grim. The number of layoffs in 2024 is on track to match or even surpass the 10,000 layoffs in 2023. The closure of these studios adds to the sense of despair within the industry. Despite Matt Booty, head of Xbox Game Studios, expressing a desire for prestige indies, even a critically acclaimed game like Hi-Fi Rush couldn’t save Tango Gameworks.
The impact of these closures and mergers raises questions about the future of gaming and the investment players should make in upcoming games and their creators. With studios being closed despite meeting the parent company’s expectations, it’s difficult to get excited about future releases. The upcoming Xbox Showcase, where Indiana Jones and the Great Circle, and the next Call of Duty game are expected to be showcased, may feel forced in light of recent events. The trust in Xbox’s commitment to its developers has been shaken.
Despite the gloomy news in the gaming industry, there are still some rays of sunshine for players. Nancy Drew: Mystery of the Seven Keys has finally launched, providing an exciting mystery-solving experience. Additionally, Hades 2 is now available in early access, promising an engaging sequel that may even win over those who aren’t typically fans of roguelikes. These games offer a brief respite from the dark cloud hovering over the industry this week.
As we look ahead to the summer gaming showcases, such as Summer Games Fest, Nintendo’s June Direct, Ubisoft Forward, and the Xbox Games Showcase, it’s important to approach them with cautious optimism. While the games on display may still be impressive, players now have a glimpse of the uncertainty that looms over developers’ heads. The industry must grapple with these challenges and find ways to support and nurture its talent to ensure a vibrant and thriving gaming landscape.
In conclusion, the recent closures and mergers of Xbox game studios have cast a shadow over the gaming industry. It highlights the precarious nature of game development and raises questions about the future of the industry. However, amidst the uncertainty, there are still opportunities for players to enjoy exciting new releases and support talented developers. It is crucial for the industry as a whole to address these challenges and work towards a more stable and supportive environment for game creators.