Xbox President Sarah Bond Responds to Bethesda Studio Cuts, Points to Lack of Industry Growth and Need to Manage the Business 'Through This Moment of Transition'

Xbox president Sarah Bond addressed Microsoft's recent decision to close several Bethesda studios, attributing the move to a need to ensure long-term health for Xbox during a challenging industry transition. Microsoft's closures include notable studios like Arkane Austin and Tango Gameworks, sparking significant backlash from the gaming community. Bond emphasized the importance of adapting to an industry that is currently not growing, focusing on maintaining Xbox's viability through this period.

In an interview, Bond explained that despite high-quality game releases, the video game industry's growth has stagnated, pushing Microsoft to prioritize its resources. The closures are part of a broader strategy to manage increasing game development costs and longer production times while focusing on priority games. Despite the cuts, Bond reaffirmed Xbox's commitment to its studios and partnerships, highlighting ongoing projects and the impact of related media like the Fallout TV show on game engagement.