Another major round of layoffs at Microsoft is likely just around the corner, so there’s a lot of buzz about the Redmond-based tech giant.

Xbox is set to undergo a drastic reorganization as the new leadership aims to get the brand back on track. At least five studios are at risk of closure and may become independent if they can find a buyer. As a result, developer morale is at an all-time low. Previously, rumors circulated that Xbox’s flagship studio, Obsidian Entertainment, might be among those slated for closure. However, conflicting information has emerged that refutes earlier claims. An insider, Jeff Grubb, clarified that Microsoft’s leadership briefly discussed closing the studio.

In a YouTube video, Grubb explained that the conflicting rumors emerged because these studio closure decisions are being made right now. The new Xbox leadership operates with a startup mindset where important decisions are made quickly. According to Grubb, things happened very quickly in Obsidian’s case. His sources confirmed that the studio had been on the brink of closure for some time, though the situation may have improved for now. However, it seems the team’s future is still in jeopardy, and layoffs are certainly to be expected at Xbox.

Grubb added that Xbox makes its decisions within about 24 hours. This means that these decisions have likely already been made. Previously, decisions of this nature would have taken weeks or months to make, but now they handle these matters in a matter of moments. Obsidian has developed several high-quality games for Xbox in recent years. Examples include Avowed and The Outer Worlds 2. However, according to earlier rumors, neither title reportedly met internal sales targets.

Things are really heating up around Microsoft, and it’s only a matter of days before we officially report on the closures.

Source: Tech4ganers