Microsofthas initiated the ‘reset’ of itsXboxcommerce, involving at least four distinct developers, including Ninja Theory and Undead Labs, becoming independent or being acquired by another entity.
It’s been looming for weeksNow, it appears that Microsoft has started their most significant transformation in Xbox’s history, just in time for the brand’s 25th anniversary. Microsoft has officially stated that around 3,200 employees will depart the company this fiscal year, with 1,600 being let go today.
Microsoft is currently cutting 4,800 employees, with Xbox and its business sales team experiencing the largest portion of these reductions. It is believed that the number of affected workers at Double Fine, Undead Labs, Ninja Theory, or Arkane Lyon is relatively low (approximately 300), as these studios will no longer be part of Microsoft but are either being acquired by other companies or given the option to operate independently.
The precise future of Arkane Lyon remains uncertain, as they are a French studio with more favorable labor regulations compared to studios in the US (and even Ninja Theory in the UK), but it is suggested that they may either be sold or permitted to operate independently. The fate ofMarvel’s Blade, which they are currently developing, relies on how it unfolds.
Every developer is recognized for producing smaller, more creative games that do not always achieve strong financial success. They were also all acquired recently by Xbox, as part of a series of purchases initiated by former Xbox executive Phil Spencer – a move that is often quietly attributed to many of Xbox’s current challenges.
Psychonauts maker Double Fine and South Of Midnightdeveloper Compulsion Games will once again take on ‘management responsibilities’, withGame Fileasserting that Microsoft will provide Double Fine with ‘runway funding’ to begin working on new games and secure additional investors and publishers.
HellbladeThe developer Ninja Theory has already been acquired by a new owner, although the name of the buyer will not be revealed until next year. In addition to their games, Ninja Theory also runs a premium motion capture studio, making them attractive to other companies.
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