Xbox Boss Phil Spencer On Microsoft Studio Closures: 'I Have To Run A Sustainable Business'
Portfolio Pulse from Franca Quarneti
Xbox boss Phil Spencer discussed the closures of several Microsoft gaming studios, including Arkane Austin and Tango Gameworks, as part of broader layoffs affecting around 1,900 staff. Despite the layoffs, Spencer emphasized the need for a sustainable business model and assured continued investment in Xbox. The closures reflect a broader trend of workforce reductions in the gaming industry, with companies like Sony also implementing significant cuts.
June 10, 2024 | 6:20 pm
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NEGATIVE IMPACT
Microsoft's Xbox division is closing several gaming studios, including Arkane Austin and Tango Gameworks, as part of broader layoffs affecting around 1,900 staff. Despite the layoffs, Xbox will continue to invest in future projects.
The closure of several gaming studios and broader layoffs are likely to have a negative short-term impact on Microsoft's stock price due to concerns about workforce reductions and potential disruptions in future game development.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Sony is mentioned as part of a broader trend of workforce reductions in the gaming industry, similar to Microsoft's recent layoffs.
Sony is mentioned in the context of a broader industry trend of workforce reductions. The direct impact on Sony's stock price is likely neutral in the short term as the news primarily focuses on Microsoft's actions.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 20