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 down a number of studios, insisting it was about ensuring the Xbox business remains healthy in the long term during what she called “this moment of transition.” Microsoft’s decision shocked the gaming world, as it resulted in the closure of popular studios like Redfall and Prey developer Arkane Austin, and Hi-Fi Rush and The Evil Within developer Tango Gameworks. The closures were part of a broader wave of cuts targeting Bethesda owner ZeniMax.
Xbox Faces Industry Headwinds and Cost Increases
Bond acknowledged that the video game industry has faced a lack of growth in recent years, despite the release of groundbreaking titles. She attributed this to the need to attract new players and make gaming more accessible. Additionally, she highlighted the rising costs and development time associated with creating triple-A blockbuster games. “The last year or so in video games, largely the industry’s been flat,” Bond said. “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 make gaming more accessible.” She emphasized that Xbox is committed to ensuring its brand is positioned well during this period of transition.
Xbox Committed to Long-Term Health, Despite Criticism
Bond directly addressed the studio closures, stating that Microsoft is committed to ensuring the Xbox business remains healthy for the long term. She reiterated the industry’s stagnation and the need to navigate this “transition” period. “It’s always extraordinarily hard when you have to make decisions like that,” Bond said. “I’ll go back to what I was saying about the industry. And when we looked at those fundamental trends, we feel a deep responsibility to ensure that the games we make, the devices we build, the services that we offer are there through moments, even when the industry isn’t growing and when you’re through a time of transition.” While she acknowledged the difficult nature of these decisions, Bond asserted that Microsoft is committed to fostering a diverse gaming platform, offering everything from big-budget titles like GTA to smaller, independent games like Palworld.
Xbox’s Commitment to Bethesda and Future Prospects
Bond also highlighted Microsoft’s commitment to Bethesda and its role within the Xbox ecosystem. She pointed to the success of the Fallout TV show on Amazon and its positive impact on the games, as an example of the continued value of the Bethesda franchise. She also mentioned upcoming titles from Xbox studios like Indiana Jones and the Great Circle, showcasing the ongoing commitment to delivering new experiences.
Industry Experts Question Studio Closures
Despite Bond’s explanation, industry experts and fans have questioned the closure of Tango Gameworks, especially given the success of Hi-Fi Rush. In a town hall meeting with ZeniMax staff, Matt Booty, head of Xbox Game Studios, acknowledged Hi-Fi Rush’s success, but suggested that the factors driving its success had changed since its release. He also indicated that the studio’s prospects had lowered, as the pitch for Hi-Fi Rush 2 was deemed too expensive. This suggests that the decision to close Tango Gameworks was driven by a combination of factors, including the need to reduce costs and the perceived financial risk of greenlighting a new Hi-Fi Rush project.
Xbox’s Future Uncertain Amidst Industry Challenges
Ultimately, the closure of these studios highlights the challenges facing Xbox and the gaming industry as a whole. While Microsoft has the resources to weather the current storm, the company is facing declining gaming revenue and stagnant Game Pass subscriber growth. These challenges, combined with increased internal scrutiny following the Activision Blizzard acquisition, raise questions about Xbox’s future. The studio closures and the lack of a clear response from leadership have left many wondering if Microsoft is taking the right steps to ensure the long-term health of the Xbox business.
Have You Played Hi-Fi Rush?
The closure of Tango Gameworks, the studio behind the critically acclaimed Hi-Fi Rush, has reignited interest in the game. Do you have any thoughts about this game? Have you played it? If not, are you interested in checking it out now? Take a moment to share your thoughts and help us understand the impact of these studio closures on the gaming community.
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