On May 7, the Xbox team caused a stir on social media with the announcement that Tango Gameworks and Arkane Austin would be closing. This news arrived less than six months after Microsoft’s gaming division experienced layoffs of 1,900 employees.
Developers at Xbox’s in-house studios are increasingly expressing concern and disappointment over the company’s direction, as echoed by the recent public statement from the author of DEATHLOOP, which mirrors the sentiments of many. The company is struggling to maintain its Xbox Game Pass subscriber base, and sales of the Xbox Series X|S are on the decline, prompting frequent strategic shifts.
Journalists have reported that amidst Microsoft’s ongoing issues, there’s an internal debate about adding Call of Duty to the Xbox Game Pass lineup. The concern is straightforward | the franchise earns significant revenue from sales, and offering new titles in the subscription service from day one could diminish profits.
Additionally, executives are contemplating another increase in the price of Game Pass Ultimate, although no definitive decision has been reached.
The latest offering from Xbox, Senua’s Saga | Hellblade II, is set to release on May 21 for PC and Xbox.
There have been rumors that the management is contemplating a release on PlayStation 5; however, no definitive decision has been made yet.
Overall, Microsoft has an extensive lineup of games prepared for 2024, including Microsoft Flight Simulator 2024, Starfield | Shattered Space, Avowed, Indiana Jones and the Great Circle, and the new Call of Duty.
Right now, however, its gaming division is not growing financially, except for Activision Blizzard, which has just joined it, and its long-term strategy remains murky.
