
Phil Spencer, the executive vice president of Gaming at Microsoft, described his role and responsibilities in making tough decisions for the sustainability of the business as being focused on running a sustainable business inside the company and ensuring its growth4. He acknowledged that sometimes this requires making hard decisions that are not necessarily ones he enjoys, but are necessary for the overall health of the business. Spencer emphasized that his priority during difficult times is to focus on the affected team members and ensure that the company is doing the right thing for them through severance and other support measures.

In May, Microsoft announced the closure of several game studios under Bethesda Softworks, including Arkane Austin, Tango Gameworks, and Alpha Dog Studios6. Additionally, Roundhouse Studios, a game studio that supports Redfall, was absorbed into ZeniMax Media, the parent company of Bethesda Softworks4.
Arkane Austin was the developer behind the game 'Redfall'. Tango Gameworks was known for developing games such as 'Ghostwire: Tokyo' and 'The Evil Within'. Alpha Dog Studios developed games like 'Mighty Doom'.
This decision was part of a reprioritization of titles and resources, as explained by Matt Booty, head of Xbox Game Studios. The aim was to invest deeply into the portfolio of games and new intellectual property. Most of the staff at the game studios that were closed will be laid off, but some staff from Arkane Austin will be transferred to other teams at ZeniMax Media4.
In addition, Booty reported that some Bethesda Softworks publishing and corporate team employees would also be laid off. The closure of these studios led to shock and anger throughout the gaming industry.

In response to the layoffs at Microsoft's gaming studios, Phil Spencer mentioned that they are focusing on supporting the affected individuals through severance packages and other unspecified measures. He emphasized that his priority is to ensure the well-being of the affected team members and that the decisions made are not about public relations, but rather about the teams and individuals involved.