Matt Firor, former head of ZeniMax Online, said the closures of Arkane Austin and Tango Gameworks marked a turning point signaling more layoffs at Xbox and beyond. He discussed the impact during a recent interview with MinnMax, noting that the studio shutdowns triggered concern and departures among ZeniMax Online staff in the following weeks [1].
"I've seen this before. I know where this is going," Firor said, describing the layoffs as part of a recurring boom-and-bust cycle in the games industry [1]. He referenced past large-scale cuts, such as the 2008-2009 layoffs at EA where 1,100 jobs were cut initially and 1,500 more later that year [1].
Firor emphasized that the issue was not exclusive to Xbox. "I know we're talking about Xbox here, and specific situations, but these situations happen way too often all over the place," he said, pointing to an industry-wide pattern rather than an isolated crisis [1].
The closures of Arkane Austin and Tango Gameworks, alongside the cancellation of the 300-person Project Blackbird team, have raised alarm within Microsoft’s game studios ecosystem [1]. Firor said internally, the shutdowns made developers expect further hardships.
Following the studio closures, several employees unexpectedly left ZeniMax Online, highlighting the unsettling effect the events had on morale and stability [1].
Firor's comments underline longstanding volatility in game development employment, where cycles of rapid growth often lead to sharper contractions. He spoke from experience navigating these shifts throughout his career.
The next major event for ZeniMax Online and Xbox-related studios has not been officially announced, but industry watchers expect Microsoft to outline future plans amid ongoing restructuring.
