A gray cloud loomed over this year's big summer game showcases: Over 16,000 game developers have lost their jobs since 2023, many of whom were casualties of success at companies that reported huge profits this year. One of the largest cost cutters has been Xbox, which in January cut 1,900 jobs at Activision Blizzard and in May shut down four studios: Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Games. The closure of Tango was taken especially hard, as the studio was still basking in the light of Hi-Fi Rush, a critical and commercial success by all of Microsoft's metrics.
To developers, the unexpected closures sent a clear message: Making good, profitable games is no longer good enough. Public trust in Microsoft as stewards of the studios it spent years gobbling up has been shaken—what beloved, storied studio will Xbox suddenly decide to shut down next?
