A gray cloud loomed over this year’s big summer game showcases: Over 16,000 game developers have lost their jobs since 2023, many of whom were casualties of success at companies that reported huge profits this year. One of the largest cost cutters has been Xbox, which in January cut 1,900 jobs at Activision Blizzard and in May shut down four studios: Tango Gameworks, Arkane Austin, Alpha Dog Games, and Roundhouse Games. The closure of Tango was taken especially hard, as the studio was still basking in the light of Hi-Fi Rush, a critical and commercial success by all of Microsoft’s metrics.
