Official Microsoft announcements or major business news outlets

Microsoft Closes Studios, Lays Off 1,900 After $75.4B Activision Buy

May 7, 2024, 02:41 PM

Microsoft's recent acquisition of Activision for $75.4 billion has been followed by significant financial pressures leading to the closure of several studios and layoffs. Xbox head of studios, Matt Booty, communicated to staff via email the tough decisions to shut down studios to allocate more resources towards priority games and other portfolio areas. These closures and layoffs have sparked concerns about the security of jobs at Microsoft-owned studios, with 1,900 layoffs announced and three studios closed in 2024 alone. The situation has raised questions about Microsoft's commitment to its gaming studios and the sustainability of such business practices in the gaming industry. Key figures like Phil Spencer, Sarah Bond, and Matt Booty have been urged to take responsibility, and studios such as Ninja Theory, Obsidian, Double Fine, id, and Machine-Games are reportedly at risk.