Hey, don't fire: the wave of Xbox layoffs reached ZeniMax

Layoffs could affect employees at Arkane, MachineGames, and even id Software.

According to several sources, the wave of layoffs may have reached the studios that were part of ZeniMax Media before its acquisition by Microsoft for $7.5 billion.

George Broussard, co-founder of 3D Realms and Apogee, and one of the creators of the Duke Nukem series, provided a new cause for concern. He stated on social media that layoffs at the former ZeniMax division have already begun and could be significantly larger than many expect.

According to Broussard, he received information that the layoffs would be "much deeper than one can imagine". When a user suggested that all employees not working on projects for The Elder Scrolls and Fallout universes would be laid off, the developer replied that he had heard exactly such information a few days earlier.

If these rumors are confirmed, the consequences could be extremely serious for Xbox. Studios such as Arkane Lyon, id Software, and possibly MachineGames could be at risk. Such a scenario seems unexpected, given the success of the DOOM, Wolfenstein, and Indiana Jones series, which received high critical acclaim and showed decent commercial results.

However, Microsoft has already made tough decisions regarding its gaming divisions. About two years ago, the company closed Arkane Austin, Tango Gameworks, and Alpha Dog Games. In addition, Xbox management previously stated its intention to focus investments on the company's largest franchises, primarily The Elder Scrolls and Fallout.

Currently, Microsoft has not officially commented on the information about new layoffs. Therefore, all information remains at the level of rumors and insider reports. Nevertheless, if the announced data turns out to be true, Xbox could face one of the largest restructurings in the brand's history.