While the recent reports of lay-offs across Microsoft’s Xbox division have been one of the bigger stories this week, a new report indicates that tensions have already been quite high at Halo Studios even before the email announcing the lay-offs went out across the division. According to Engadget, several employees from Halo Studios have spoken about this.
“I’m personally super pissed that Phil’s email to us bragged about how this was the most profitable year ever for Xbox in the same breath as pulling the lever” said one Halo Studios employee, according to Engadget. “I wasn’t sure what part of that I was supposed to be proud about.”
Tensions being high at the studio also likely came about due to the stress involved in working on multiple projects simultaneously while also working to support Halo Infinite. One project particularly has also been seemingly put in jeopardy thanks to the lay-offs and overall cost-cutting.
“I don’t think anybody is really happy about the quality of the product right now,” said the developer. “There’s been a lot of tension and pep talks trying to rally folks to ship.”
Another employee noted that the Xbox gaming division “feels years behind the curve” in terms of game development when compared to the rest of the industry. This, the employee said, was because of how the studios under Xbox are generally handled, with an emphasis on contracting developers rather than hiring them long-term. More recently, however, Microsoft had taken to contracting entire studios rather than individual developers.
The recent shift in tech and tech-adjacent industries like gaming towards using AI has also been stated to be one of the causes for the lay-offs, with the developer saying that “they’re trying their damndest to replace as many jobs as they can with AI agents.”
The lay-offs were announced internally earlier this week through an email sent out to members of the Xbox division by Microsoft Gaming CEO Phil Spencer. In the email, Spencer wrote about the lay-offs being done “to position Gaming for enduring success and allow us to focus on strategic growth areas.”
“We must make choices now for continued success in future years, and a key part of that strategy is the discipline to prioritize the strongest opportunities,” Spencer wrote further in the email. “We will protect what is thriving and concentrate efforts on areas with the greatest potential while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.”
“Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.”
As a result of these lay-offs, around 9,100 employees are expected to be affected. Several projects have also been seemingly cancelled, including Rare’s Everwild.
