Microsoft is laying off over 9,000 people, including some entire game studios they have acquired. These studios were making interesting games with some buzz, including the new Perfect Dark game that had a prime slot just last year in Microsoft's game showcases. This of course comes less than a year after closing down 4 other studios, including Tango Gameworks, makers of the hit game Hi-Fi Rush. Arkane Austin, a legendary studio that had made hit games since 1999, was another one of those 4 studios shut down last year; they made it 22 years, but 3 years after Microsoft picked them up they were dead.

In fact, a quick tour of the Xbox Game Studios Wikipedia page reveals a raft of closed or sold-off studios, and a remaining list that's full of studios that I don't think many people would say are in their prime. Obsidian is maybe the only bright spot, but otherwise it's not great.

A few years ago I was concerned about Microsoft acquiring so many high-profile game studios because they would consolidate too much power over the industry. It turns out that they actually just made most of these studios irrelevant. It's a real bum deal for everyone from gamers to the studios to the tens of thousands of people Microsoft has laid off in the last year or two, many of whom came from the gaming division.