More Xbox studio cuts likely to follow Tango and Arkane Austin, and Game Pass looks like the culprit

Recent cuts at Xbox studios, including Tango and Arkane Austin, are part of a broader cost-cutting initiative by Microsoft, with more likely on the horizon. Xbox president Matt Booty described the company’s stretched resources as being spread "like peanut butter on bread." The focus on reducing overheads comes amid stagnant growth in Game Pass subscriptions, which had previously fueled expansion but now sees Xbox scaling back on riskier, creative projects.