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Microsoft Reportedly Planning Major Studio Cuts in Gaming Division

Microsoft may close several Xbox game studios, raising concerns about job security and strategic focus.

In what could be a significant shakeup for the gaming industry, Xbox is reportedly planning to close several studios, according to GameWorldObserver, citing Bloomberg journalist Jason Schreier. The rumored downsizing suggests that Microsoft is reconsidering its gaming strategy, potentially affecting at least three teams. This move may come as a surprise to some, given Microsoft’s past investments in expanding its gaming portfolio through acquisitions. The closures signify possible re-prioritization within Microsoft’s gaming division, but specific details or motivations have not been disclosed.

In another corporate move, Apple is reducing its App Store commission in the EU in an attempt to settle its disputes with the European Commission over its “gatekeeper” status. This policy update reflects ongoing tensions between tech giants and regulatory bodies in the region. By lowering commissions, Apple aims to ease some of the regulatory pressures and perhaps stave off stricter regulations around its App Store practices.

The gaming preservation dialogue received a double blow when the European Commission declined to back the Stop Killing Games initiative, which sought to prevent games buyers from losing access to their purchases after support ends. Meanwhile, in the UK, the National Videogame Museum launched a nationwide survey to map the current state of video game preservation across the country. These efforts highlight the ongoing challenges in the preservation discourse and suggest a need for more concerted industry and governmental action.

Elsewhere, controversy around workplace practices in game development continues as Bulkhead’s CEO Joe Brammer defended his stance on labor practices. Brammer, having been under scrutiny for remarks perceived to endorse “crunch” culture, insists that he supports “hard work” rather than exploitation, continuing an industry-wide debate that combines productivity with developer welfare.

Lastly, cloud gaming sees another valuable addition as Star Wars: Galactic Racer launches on Amazon Luna. The new title is available to Prime subscribers, showing Amazon’s ongoing commitment to bolster its cloud gaming service amidst competition with other streaming giants.

These stories collectively reflect an industry grappling with corporate restructuring, evolving platform policies, and ongoing discussions about game preservation and workplace culture. The outcomes of these developments could reverberate widely, impacting gamers, developers, and the broader tech industry.