Xbox Is Reportedly Planning Even More Cuts

thegamer.com:

Xbox fans were dealt some devastating news earlier this week, after the company announced it would be shutting down multiple developers, including Tango Gameworks and Arkane Austin. It was claimed by Xbox that this was done so it could funnel more funds into "high-impact" titles, likely referencing big games currently in development, such as The Elder Scrolls 6.

A new report by Bloomberg journalist Jason Schreier has backed up that claim, explaining that the studios were shut down as part of a cost-cutting initiative, but it's also claimed that Xbox isn't even finished cutting staff just yet. According to Schreier, voluntary severance agreements were being offered by Xbox to producers, quality assurance testers, and several other staff members at ZeniMax, Bethesda's parent company.

Schreier's sources have also claimed that more cuts are also on the way across the entire Xbox organization, though the extent of which and whether this will include the closure of any more developers is currently unknown.

This report also reveals the details of a town hall meeting that took place at ZeniMax following the closure of Tango Gameworks and Arkane Austin. Xbox president Matt Booty reportedly explained that leaders at studios under ZeniMax felt like they were understaffed and spread too thin, like "peanut butter on bread", and that the decision to close these studios was to free up resources for everyone else.

ZeniMax Studios head Jill Braff also went on to explain that the company was struggling to manage all the studios that it had under its umbrella, claiming that it was "about to topple over" due to all the projects it had going at once. It was also revealed that Tango Gameworks and Arkane Austin were planning to hire more people for future projects (a Hi-Fi Rush sequel and a single player immersive sim), which was suggested as another reason why the two were closed.