Xbox first-party studios considered “safe” are reportedly informing their employees of an uncertain future amid the business’ reset.
Obsidian Entertainment co-founder Chris Avellone took to Twitter/X to share that he’s heard Xbox first-party studios previously considered “safe” from layoffs are now getting a different message after the recent announcement of a business reset. The upper management at these studios is reportedly telling employees it isn’t sure how the company’s restructuring will impact the development teams.
According to Avellone, there is a lot of uncertainty, even within first-party studios that have had a steady cadence of releases. “Apparently, MS studios who had been told in the past that layoffs wouldn’t affect them are getting a different message now after the recent announcements – formerly “safe” studios now are telling employees they aren’t sure how the management changes will impact the studio,” he said. “Lot of uncertainty, even with studios who have had steady releases under MS.”
In response to a comment about there being 4 development teams at Obsidian Entertainment, Avellone clarified that he believes Grounded 2 is heavily outsourced, and Avowed 2 is also using design outsourcing, which means it’s not entirely being developed in-house either. According to him, the rest of the projects seem like they are ramping up, which is why they have a smaller staff at first. “I think Grounded 2 is heavily outsourced, and the non-Avowed titles seem like they are ramping up so they have a smaller staff at first. But who knows,” he mentioned. “Avowed 2 is also using design outsourcing, so it’s not entirely in house, either.”
Recently, The Information reported that Microsoft has explored several long-term options for the future structure of its Xbox business, including the possibility of turning the gaming division into a wholly owned subsidiary. Citing three people with direct knowledge of internal discussions, the report stated that the company has not ruled out restructuring Xbox in a way that could make the business easier to sell, establish as a joint venture, or operate with greater independence from the broader company.
