The Fallout of Xbox's "Reset" Becomes Clearer

Following yesterday's news of Microsoft shedding jobs across its Xbox division, including the sell-off or divestiture of some of its studios, we're starting to see the broader sweeps as CEO Asha Sharma begins her task of resetting the struggling platform.

Kotaku is reporting that developer Obsidian Entertainment, developers of Neverwinter Nights 2, Star Wars: Knights of the Old Republic II, and Fallout: New Vegas fame, have been swept up in the maelstrom of cuts from Asha Sharma's big "reset" across Microsoft's gaming portfolio. Approximately 70 staff are set to lose their job at the studio, with cuts sweeping across almost all disciplines.

It is understood that work on Grounded 2, which is currently in early access, as well as announced DLC for The Outer Worlds 2 will continue, but nothing is known about the studio's plans beyond that. The studio was founded by ex-Black Isle employees 23 years ago.

The studio behind DOOM and Quake, id Software, has also been impacted, with industry news outlet Game Developer reporting that approximately half the studio's staff are set to be cut, with sources putting the actual number at about 90 staff.

id Software had literally just yesterday released an expansion for their most recent DOOM game: DOOM: The Dark Ages - Revelations. They're also due for their annual QuakeCon in August. There's been no official word on what this means for Quake Champions either.

IGN has published an internal email from Jill Brash, head of Bethesda. In it, the boss says they are shifting from a studio-based planning model to a seemingly more shared approach, where the studio can allocate resourcing to the "strongest franchises". Under the umbrella, MachineGames is currently working on Wolfenstein 3 and an associated live-action Amazon Prime show, and we know Bethesda Game Studios is currently working on an Elder Scrolls VI. A follow-up to Fallout is also likely, given the continued success of the Amazon TV series. What this means for franchises like DOOM or Quake in the wake of these cuts is yet to be understood.

Centrally, Microsoft is also making cuts beyond its gaming division. Reuters is reporting the company is aiming to cut about 2% of its workforce, equivalent to 4,800 jobs. The 3,200 jobs Microsoft is planning to cut over the course of this fiscal year is included in this figure. More locally, ABC News is reporting that Australian roles will be included in the cuts.

This is quite possibly only the beginning of the stories we'll hear from the Xbox camp, with the dust likely to fall from other studios over the coming days.