The state of the video game industry got even more depressing yesterday with the news that Xbox is shutting down four Bethesda studios triggering further layoffs.
In an internal memo from Matt Booty, the head of Xbox Game Studios, it was announced that the company will be closing Arkane Austin (the developer behind the disastrous Redfall), Tango Gameworks (Hi-Fi Rush, Ghostwire: Tokyo, The Evil Within), Roundhouse Games, and Alpha Dog Studios.
The memo – first published by IGN – explained that “prioritizing high-impact titles and further investing in Bethesda’s portfolio of blockbuster games” was the reason behind the layoffs and restructuring.
“To double down on these franchises and invest to build new ones requires us to look across the business to identify the opportunities that are best positioned for success,” continued Booty.
In addition to the studio closures and layoffs, the memo mentioned that “a small number of roles across select Bethesda publishing and corporate teams will also be eliminated.”
With the news of these redundancies at a company worth over $3 trillion, the estimated total number of layoffs across the industry in 2023 and 2024 has hit 20,000.
While the statement that Xbox are looking to focus on “Bethesda’s portfolio of blockbuster games” could be seen as a positive sign for those that are eagerly awaiting The Elder Scrolls 6 and Fallout 5, it’s incredibly disappointing that the price gamers have to pay for these long-awaited games is significant job losses.
For a company that isn’t short on cash, it’s frankly bulls**t that Microsoft have to send employees into unemployment so we can have the next instalments in some of our favourite franchises.
Dinga Bakaba, the co-creative director at Arkane Lyon, was furious with Microsoft’s decision. In a post on X, he wrote: “This is absolutely terrible… For now, great teams are sunsetting before our eyes again, and it’s a fucking gut stab.”
In an incredibly tone-deaf tweet, ex-Blizzard boss Mike Ybarra attempted to save Xbox head Phil Spencer’s reputation.
“I see a lot of shots at Phil over today’s Xbox announcements. I get it. But knowing him as a human, I know this hurts him as much as anyone else. I can’t speak for all of the leadership there, but I do know him and I do know what he is likely going through,” wrote Ybarra.
Now, I’m sure Phil isn’t ecstatic about people losing their jobs. But to say that these layoffs hurt the millionaire Xbox boss with his safe corporate job as much as they hurt the staff who’ve just been sent to the unemployment line is a complete joke. Boo-hoo, Phil feels bad. What about the folk who will now be worrying about paying their mortgages?
If the reasons behind all the redundancies over the past 18 months were to be believed, the video game industry should be among the most lean, profitable, and productive in the world. Yet, there’s still a serious lack of quality titles on the horizon. We’re still afflicted by the “live service” plague. We’re still having to wait several years for new instalments in our favourite franchises. And there’s a serious drought when it comes to new and original IPs.
I get it, it’s business. But video games are profitable. In 2022, the industry generated an estimated $184.4 billion. So, why are professionals who’ve spent their careers honing their craft being forced to compete for an ever-decreasing number of jobs? It’s unfair and heartless.
While the human casualties are by far the most concerning part of this story, the artistic and creative cost cannot be ignored, either. Pretty soon, all we’ll be left with is never-ending and poorly maintained live service titles that serve to do nothing more than extract cash out of players for skins and seasonal updates.
I love video games. And anyone that does should be hugely concerned about the state of the industry.
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