Microsoft has closed a number of Bethesda studios, including Redfall maker Arkane Austin, Hi-Fi Rush developer Tango Gameworks, and more in devastating cuts at Bethesda, IGN can confirm.
The previously rumored mass layoffs at Xbox are expected to happen on Wednesday, July 2, 2025, according to a new rumor.
They will have fired close to 20,000 people all up after this round of lay-offs coming, since the ABK deal announcement in January 2022. Shocking really
January 2023:
Microsoft laid off 10,000 employees, which was a significant workforce reduction.
January 2024:
Approximately 1,900 gaming employees were laid off following the Activision Blizzard acquisition.
May 2025:
Microsoft announced a further 6,000 layoffs as part of an organizational shift.
June 2025:
Additional layoffs, including 650 in the gaming business, focused on corporate and support functions
Let's hope its not as bad as socials are making it, good luck to those that unfortunately lose their jobs.
One of the founding members of the Xbox team has questioned Microsoft’s multiplatform gaming strategy, and said they believe the Xbox hardware business is effectively “dead"
Think that rumor that they'll still make a new console but at a profit at $1000 will be true though. The series consoles will remain their cheap alternative throughout next gen I would say. Keep in mind that game pass and pretty much going 3rd party is their main focus. They want to bring xbox everywhere.
Owlcat Games producer Anatoly Shestov reveals his dream project: an SCP game with Owlcat RPG flair and a proper budget.
Hi-Fi Rush studio??? Seriously?? Goes to show quality matters lil to MS.
Worst gen ever. All big 3 battling are for who sucks the most. They just keep one upping one another.
Tango Gameworks and Arkane?
Well xbox fans you got what you asked for... and honestly deserved...
It was so easily predictable that game pass was never going to be able to support all these studios.
If Microsoft can't win they are going to burn it all to the ground...
Countdown to Phil Spencer telling us "it's better for the gamers this way" yet again.
This is beyond wrong. Like wtf!? Especially Tango Gameworks with Hi-Fi Rush. I've heard nothing but good things about that game. Just because Arkane Austin screwed up one game release doesn't mean you need to close them. It sounds like they were forced to do a multiplayer game when they're a single player studio. They could have made a Prey 2 or some other game next.
Just wow awful news.
Can't wait to see the usual try spin and play this down. So much for the heroic MS and Phil saving these studios eh.