Zenimax and Bethesda studios may be targeted in Xbox layoffs

Earlier this week, we learned that Xbox is planning to shut down three of its game development studios – Compulsion Games, Ninja Theory and Double Fine. Now just days later, it appears that companies under the Bethesda / Zenimax umbrella are also being targeted.

According to George Broussard, a long-time game developer and co-founder of 3D Realms and Apogee, he has heard through friends that “layoffs at Zenimax have begun”, adding the cuts “may be much deeper than you expect”.

Zenimax has already been hit by layoffs and game cancellations a couple of times since joining Microsoft. At this point, it seems that any studio that isn't working on a current large IP, like The Elder Scrolls or Fallout, is now at risk.

Insider Gaming has reported that Arkane Lyon may also be at risk of closure but no final decision has been made yet. Arkane Lyon is currently working on a high-budget Marvel game, which new Microsoft bosses may not be too happy with, as licensing fees will limit the profit potential.

KitGuru Says: When Phil Spencer first started buying up studios for Xbox in 2018, the aim was to provide variety and projects of different budgets and scopes. Unfortunately, that goal has changed since spending all of that money on Activision Blizzard. 

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