Xbox founders reportedly mourn the loss of its identity: "It's not Xbox anymore, it's Microsoft gaming"

May. 10, 2024



They also point to stagnant Game Pass growth as a factor behind Microsoft’s cuts

When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

Xbox founders are reportedly mourning the loss of the company’s identity withinMicrosoftand refer to it as “Microsoft Gaming.”

Earlier this week,Microsoft shuttered acclaimed studios Arkane Austin and Tango Gameworksafter just purchasing them a handful of years ago.Hi-Fi Rush fans mourned the critically acclaimed gamein particular, despairing at the thought that even launching a beloved game might not be enough to save a developer from closure at the hands of a mega-corporation.

Now,IGNhas spoken with two Xbox co-founders about matters internally at the company, and within the context of Microsoft as an overseer. “I had lengthy conversations with a bunch of Xbox founders, and we all came to the same conclusion: it’s no longer Xbox, but Microsoft Gaming,” one founder reportedly told the outlet.

Another founder said there’s “just too much surface area,” adding that there are effectively three huge companies at play and that “Microsoft never really finished [the] integration with Bethesda.” The founder also points out thatActivisionwas three times the size Xbox was when purchased, and Xbox reportedly having “almost 30,000 people” is proof of how vast the company has become.

“The reason this seems so inconsistent with previous Xbox leadership team statements is that these decisions probably aren’t being made by Phil [Spencer],” a founder told the outlet, speaking of Xbox head of gamingPhil Spencer. “This is all getting dictated by Satya [Nadella, Microsoft CEO] and Amy Hood [Microsoft CFO], and it all stems from the Activision acquisition.”

Sign up to the GamesRadar+ Newsletter

Sign up to the GamesRadar+ Newsletter

Weekly digests, tales from the communities you love, and more

Elsewhere, Seamus Blackley, who helped design the original Xbox, reacted with the dejected emoji to a tweet highlighting the “Microsoft Gaming” portion of IGN’s report. There’s nothing to say that Blackley is kept apprised of goings-on within Microsoft and Xbox, but the veteran designer clearly doesn’t like Xbox being taken over by Microsoft.

Additionally, Blackley tweeted that “The game industry keeps forgetting, and then re-learning the hard way that it’s the DEVELOPERS who matter,” adding that it’s the people at the top who should “Treat them better.”

Marvel’s Blade and Deathloop director says Microsoft’s closure of sister studio Arkane Austin is a “f***ing gut stab.”

As if The Outlast Trials couldn’t get any more deranged, the horror co-op game’s big new update adds more tooth guns and lady who lives in the walls

Cyberpunk 2077 dev offers temporary beta branch so that Update 2.2 doesn’t make your mods explode

Dev behind new Doki Doki Literature Club-style psychological horror says it’s not “for those with weak hearts,” but with 98% positive Steam reviews, I’m not sure I can stay away