The sudden closure of several video-game studios at Microsoft's Xbox division was the result of a widespread cost-cutting initiative that still isn't finished.
This week, Xbox began offering voluntary severance agreements to producers, quality assurance testers and other staff at ZeniMax, which it purchased in 2020 for $7.5 billion (roughly Rs.
6,26,28 crore), according to people familiar with the company's plans. Others across the Xbox organization have been told that more cuts are on the way.
A spokesperson for Xbox declined to comment. Employees were shocked by the unexpected shuttering Tuesday of three Xbox subsidiaries and the absorption of a fourth.
The closures included Tokyo-based Tango Gameworks, which last year released the critically acclaimed action game Hi-Fi Rush.