After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management.
Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games. Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.
14 layers is insane, but 3 to 5 is on the real low side for a $300B corp with lots of massive studios too. The vision presented is gonna be real awkward for companies working on more than 1 game at a time, or with huge 200+ employee teams. Activision-Blizzard-King in particular, World of Warcraft has a handful of sub-teams that have to coordinate stuff and Call of Duty runs on coordinated yearly releases.
I can easily imagine 7 layers for WoW or 8 layers for CoD. That’s not bloat, just the inevitable end-result of Satya Nadella being ultimately responsible for approving the salary of whoever’s writing the latest Call of Duty, the main project of a wholly owned subsidiary (the four studios making CoD on rotation) of an acquired company (Activision) of Microsoft’s side project gaming division (XBOX).