Updated
Updated · Pure Xbox · Jun 29
Microsoft Weighs Sale or Closure of 4 Xbox Studios as Amy Hood Pushes 30% Margin Cuts
Updated
Updated · Pure Xbox · Jun 29

Microsoft Weighs Sale or Closure of 4 Xbox Studios as Amy Hood Pushes 30% Margin Cuts

3 articles · Updated · Pure Xbox · Jun 29

Summary

  • GamesBeat reported Undead Labs is among four Xbox studios now trying to find buyers before Microsoft acts in early July, with closures possible if no deals emerge.
  • Amy Hood's cost-cutting drive is pushing the review, with Windows Central saying Microsoft's CFO demanded Xbox savings to offset losses and meet earlier 30% margin targets.
  • Double Fine, Compulsion Games and Ninja Theory were also named as at-risk studios, suggesting the cuts extend beyond one team as Microsoft's fiscal year ends on June 30.
  • Undead Labs' fate matters because it is developing State of Decay 3, a project that recently showed 72 minutes of footage and had appeared to be progressing well.

Insights

Why might Microsoft close the studio behind *State of Decay 3* right after its successful gameplay reveal?
Are these studio closures the first sign that Xbox is abandoning its exclusive games strategy for good?
As Microsoft pours billions into AI, is its blockbuster gaming division being sacrificed to fund the future?