80%
Probable
We've heard increasingly loud rumblings about mass layoffs at Xbox for a couple of weeks now, and now, it seems like the turn of ZeniMax has arrived.
This past Monday, several sources pointed to Compulsion Games, Double Fine Productions, and Ninja Theory all desperately trying to negotiate an exit with Microsoft, whether that is going independent or being sold to some other publisher. But the rumors said other studios would be affected, too: a French journalist namedropped Arkane Lyon, Bethesda Game Studios, and id Software.
All three of these studios were under the ZeniMax Media umbrella prior to the $7.5 billion acquisition. Well, George Broussard, the co-founder of 3D Realms and Apogee and one of the creators of the Duke Nukem franchise, has tweeted that layoffs at the division formerly known as ZeniMax have begun and will be very deep.
Getting word that layoffs at Zenimax have begun. Heard rumblings recently that the cuts may be much deeper than you expect. Buckle up!
How deep, though? Worryingly so, if the rumors are to be believed. A follower claimed he heard that everyone not working on Elder Scrolls and Fallout was being cut, and Broussar replied:
Oh, is that public now? That's exactly what I heard a few days ago. Guess we're about to see.
That would be devastating if true. It would mean the closure not only of Arkane Lyon, which was indeed cited among the studios at risk in previous rumors, but also of id Software and possibly MachineGames, and that wouldn't track. Their DOOM, Wolfenstein, and Indiana Jones games have done well both critically and commercially, although perhaps more in the former category than the latter. It would be a big public hit for Xbox's image if they closed such esteemed studios.
Still, it's not like they haven't done it before: Xbox has already closed Arkane Austin, Tango Gameworks, and Alpha Dog Games around two years ago. And indeed, Xbox CEO Asha Sharma has noted that they want to increase funding for their biggest IPs, Elder Scrolls and Fallout in particular. Essentially, this would be pruning the less profitable franchises to make room for a much greater output in those that bring in more revenue.
About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.
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