phil spencer talks xbox studio closures at ign live 2024

Xbox boss Phil Spencer recently addressed the closure of several Microsoft gaming studios, including Arkane Austin and Tango Gameworks. In a discussion at IGN Live, Spencer explained that while these were tough decisions, they were necessary for maintaining a sustainable and growing business. The layoffs, which affected around 1,900 employees, aimed to streamline Xbox's operations to ensure continued investment in its projects. Spencer emphasized the focus on supporting the affected individuals through severance and other benefits during this challenging transition.

Microsoft closed these studios as part of a broader effort to streamline operations and ensure sustainability within its gaming division. The decision was driven by the need to make difficult choices to maintain the growth and health of the Xbox business.

Arkane Austin is known for its work on the game "Redfall," while Tango Gameworks developed "Hi-Fi Rush" and "The Evil Within." Both studios were absorbed by Microsoft through its acquisition of ZeniMax Media in 2021. Despite the closure, Xbox continues to invest in its game development, aiming to deliver high-quality gaming experiences.