Xbox President Sarah Bond Responds to Bethesda Studio Cuts, Points to Lack of Industry Growth and Need to Manage the Business 'Through This Moment of Transition'
Xbox president Sarah Bond has responded to questions about Microsoft’s decision to shut a number of much-loved studios this week, insisting it was about ensuring the Xbox business remains healthy for the long-term during what she called “this moment of transition.”
Microsoft shocked the gaming world when it announced the closure of Redfall and Prey developer Arkane Austin, Hi-Fi Rush and The Evil Within developer Tango Gameworks, and more in devastating cuts targeted at Bethesda owner ZeniMax.
Microsoft bought ZeniMax Media, the parent company of developers like Bethesda, Arkane, id Software, and more, in 2021 for $7.5 billion. Since then, it has bought Call of Duty maker Activision Blizzard for $69 billion.
In an email to staff sent by Matt Booty, head of Xbox Game Studios, Microsoft blamed the cuts on a “reprioritization of titles and resources.” In the email, first reported by IGN, Booty said: “we are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.”
Microsoft has faced widespread criticism from the development community and Xbox fans following the move, with many pointing out that Hi-Fi Rush was a critically acclaimed and, according to one Xbox executive, hugely successful release.
Not enough?#HiFiRush #TangoGameworks pic.twitter.com/3OLhYAPbxU
Speaking in an interview with Bloomberg’s Dina Bass at Bloomberg Tech in San Francisco, Xbox president Sarah Bond was first asked about the video game industry’s current lack of growth — a troubling factor Xbox boss Phil Spencer pointed to recently when asked for an explanation for Microsoft’s decision to cut 1,900 staff from its gaming business.
“You know, the last year or so in video games, largely the industry's been flat,” Bond replied. “And even in 2023, we saw just some tremendous releases, tremendously groundbreaking games. But still, the growth didn't follow all of that. A lot of that's related to our need to bring new players in and
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