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Xbox president addresses Bethesda studio closure, says it’s about keeping business healthy long-term

Earlier this week, Xbox shut down four Bethesda studios, including Redfall developer Arkane Austin and Tango Gameworks, the team behind last year’s Hi-Fi Rush. While each of the four affected studios, which also include Mighty Doom developer Alpha Dog Games and Bethesda support studio Roundhouse Games, released a statement regarding the closures, Xbox remained silent.

However, four days later, of Bloomberg Dina Bass interviewed Xbox president Sarah Bond and asked her about Bethesda’s closure, to which Bond indicated her desire to keep the Xbox business healthy for the long term, even through difficult transition periods.

Here’s what Bond said:

“It’s always extremely difficult when you have to make decisions like that. I’ll go back to what I said about the industry, and when we look at these fundamental trends, we feel a deep responsibility to make sure that the games we make, the devices we build, the services we offer are there at times even when the industry doesn’t it also grows when you are in transition. And the news we announced earlier this week is a result of that and our commitment to making sure the business is healthy for the long term.

“With that said, our commitment to having our own studios and working with partners to have games big and small – we’re a platform you can play on [Grand Theft Auto], but you can also play Palworld, or you can play Call of Duty, or you can play Pentiment, that doesn’t change. And frankly, our commitment to Bethesda and the role it plays is part of Xbox and everything we do.

“It was actually pretty fantastic. I don’t know if you’ve had a chance to look at it. The Fallout TV show was on Amazon and it was great to see people fall in love with that universe, but also what it does for the games themselves and people coming back and exploring everything within it, there are some other great things that coming from our studios later this year – I was a huge Indy fan – so you should check that out. But really right now, for us and our teams, our focus is on the people affected and doing everything we can to help them through this difficult transition.”

Bass then asked Bond specifically about the closure of Tango Gameworks after Hi-Fi Rush, which by Xbox’s recognized metrics was a big success. Bond’s response here wasn’t so clear – you can read it in full below:

“One of the things I really love about the games industry is that it’s a creative art form, and that means that the situation and what the successes are for each game and studio is also really unique. There’s no one-size-fits-all So we look at every studio, every game team, and we look at a whole range of factors when we’re faced with making decisions and trade-offs like the games we make, the devices we make, the services and making sure that we are ready to deliver on those promises.”

While it’s great that Bond addressed these Xbox closures, it still lacks the clarity you’d expect from one of the biggest companies in the gaming industry. Neither Microsoft nor Xbox, including Microsoft Gaming CEO Phil Spencer, have yet addressed the layoffs and closings in an official capacity beyond that.

For more, read how Redfall is reportedly getting a big offline update this month before Xbox shuts down Arkane Austin, and then read how Xbox is reportedly considering bringing Senua’s Saga: Hellblade II to PlayStation 5. Then check out this story on how more job cuts are reportedly on the way at Xbox, and then read how the company is discussing putting Call of Duty on Xbox Game Pass alongside a price hike.


What do you think of Bond’s responses? Let us know in the comments below!

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