Microsoft Relies on Misleading Narrative of Studios Going 'Independent'; in Reality There Are Mass Layoffs in Them
Haven't we all seen press reports about studios that Microsoft got rid of (because XBox is unsustainable) going "solo" or "independent" or some other nice-sounding status?
Well, as it turns out id Software and others are brutally cut and even some that "broke off" or left Microsoft [1-2] "Amid Divestiture From Xbox" [3] are so badly hit that within a few weeks a quarter of the staff is laid off [4].
This is not a good narrative for Microsoft, which already faces lawsuits over it. █
Related/contextual items from the news:
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Neowin ☛ Psychonauts studio Double Fine hit with layoffs after split with Xbox
Earlier this month, the new Xbox CEO Asha Sharma initiated the big "reset" for the Microsoft gaming division she had been talking about for some time. This meant 3,200 layoffs across game development studios, major internal IP changes, and even five first-party Xbox Game Studios being spun off as independent companies or being sold. One of those studios today announced a layoffs wave of its own, affecting almost 30% of the team.
Double Fine Productions founder Tim Schafer today announced over social media that 23 members of staff have been let go. The team had been about 80 strong before this. He said the survival of the studio was the only reason this kind of decision would be made and that being independent from Microsoft means it has to have a team size that the company can sustain.
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Newly Independent Double Fine Has to Lay Off 23 Devs to Ensure Survival of the Studio
The cuts were confirmed in a social media post from Tim Schafer, which read: "Today, Double Fine Productions let go of 23 members of our staff. As a small, tightly-knit team, these actions are not taken lightly. Only the survival of our studio would ever make us consider such a painful action. Our transition to becoming an independent company also means becoming a size that we can sustain."
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GO Media ☛ Psychonauts 2 Studio Double Fine Hit With Layoffs Amid Divestiture From Xbox
An Xbox spokesperson has shared the following statement with Kotaku: “Double Fine fully returned to independent management earlier this week, with their IP, catalog, and runway for their next games. As they begin their next chapter as an independent studio, we look forward to seeing what they create next.”
Xbox declined to comment on how much runway Double Fine has.
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Gamer Network Limited ☛ After gaining independence from Xbox, Double Fine are laying off a quarter of their staff
It's another one of those days, as Double Fine have announced that they are laying off 23 members of staff. This comes weeks after their split from Xbox that left them independent once more, which also saw South of Midnight developers Compulsion go indie, and State of Decay studio Undead Labs and Senua's Ninja Theory acquired by new, as of yet to be confirmed owners.
"Today, Double Fine Productions let go of 23 members of our staff," reads a statement from studio head Tim Schafer. "As a small, tightly-knit team, these actions are not taken lightly. Only the survival of our studio would ever make us consider such a painful action. Our transition to becoming an independent company also means becoming a size that we can sustain. The people we are losing were all important. They all made an impact on our games and culture, and they will be missed."