After the tornado of layoffs at Xbox, Microsoft is finally speaking officially on the subject with justifications. A highly anticipated speech.
Phil Spencer, the head of Xbox, recently explained the decision to close several Bethesda studios. Including Tango Gameworks, the developer of Hi-Fi Rush. The move, announced in May, also includes the closure of Arkane Austin, Alpha Dog and Roundhouse Games. Well, it’s still very vague but at least a statement is made.
Phil Spencer speaks out on Xbox layoffs
During an interview with IGN Live after the Xbox Games Showcase presentation, Spencer emphasized that the move was aimed at ensuring the sustainability of the company. He clarified that he had focused his efforts on supporting affected employees, rather than on public communication. “It’s about doing the right thing for team members,” he said, adding that the priority was to provide compensation and adequate support to employees.
Spencer acknowledged that while he personally doesn’t enjoy making such decisions, they are necessary. In particular to maintain the economic viability of Xbox. “I need to run a sustainable business and grow,” he explained, mentioning that these difficult choices are sometimes essential to ensure the continuity and development of the company.
The closure of studios such as Tango Gameworks raises questions about resource management in the industry. Ensuring profitability while supporting creators and preserving the quality of productions is a constant challenge. The closure decisions show the complexity of maintaining a balance between innovation, employee satisfaction and financial goals.
Phil Spencer’s comments shed light on the management challenges facing large video game companies. Where difficult strategic choices are often necessary to ensure sustainability and long-term success.