Is TESO under threat? Major reshuffles at Microsoft

Former XBOX division director Phil Spencer brought a huge number of publishers and game developers to collaborate with Microsoft to promote its Game Pass subscription service. But ultimately, this program did not meet the financial expectations placed on it, and Spencer himself yielded his position at the helm to Asha Sharma, who, after a brief analysis and planning, announced a restructuring of the game studios under the wing of the American corporation. It has already been announced that thousands of employees will be laid off from companies, which also include Bethesda-ZeniMax Media, engaged in developing the popular MMORPG The Elder Scrolls Online.

In an open address to the public, Asha Sharma stated that she understands how painful the layoff of 3200 employees and the transition of four game studios under new leadership is, but at the same time she notes that the profit from studios within the XBOX structure is 3-10 times lower than that of competitors. And since the venture with Game Pass and multiplatformity brought minimal results, plans have to be revised for the sake of future growth. At the same time, the changes will affect developers. Thus, the Compulsion Games and Double Fine Productions teams will go freelance, Ninja Theory and Undead Labs will transfer to new ownership, and at Activision, Bethesda-ZeniMax, Blizzard and Mojang (the creators of Minecraft), expenses will be reduced.

Importantly, none of the existing titles, including The Elder Scrolls Online, will be shut down due to these layoffs. At least, that's what the XBOX leadership claims. Nevertheless, 1600 employees of the gaming branches have already left their teams, and just as many are packing their things. And the business is moving towards simplifying management: if currently there are 14 levels of management in it, in the future only five will remain. Finally, one Chief Operating Officer will be appointed to oversee the losses of all studios under the aegis of Microsoft — Helen Chiang from Mojang's leadership.