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Xbox has recently announced the closure of several game development studios to cut costs. This move has made the company the latest to face criticism and backlash from the gaming community, taking all the negative attention away from PlayStation.
It is always disheartening to see studios shut down due to business affairs, especially when they don’t deserve it. Microsoft’s recent acquisition spree was questionable from the start and made it even more so when it bought them just to shut them down years later.
Xbox Is Taking the Negative Attention Away From PlayStation
It is almost as if Microsoft is envious of all the negative flak Sony is receiving from itsrecent fumble regarding the integration of PlayStation Network and Steam accountsfor players to continue playing one of the best games of the year:Helldivers 2on PC. The rival platform then decided the time was right to announce the closure of four game studios to redistribute resources and assets for higher-impact developers and video games.
It is also worth noting that this is perhaps the most notable act that Microsoft has done this year while it also failed to release high-quality games. Even casual gamers are confused with the company’s business strategy and fear it may just be the start of a greater culling or trimming of fat.
Xbox has shut down more studios than released games this year.
Let that sink in.
— SloMoDaMus (@SloMoBackSlap)June 22, 2025
Perhaps the company was unhappy thatHi-Fi Rush, one of Tango Gameworks’ projects,performed better and was well-received on the PS5compared to the Series X. It is awkward to have a first-party title do better on rival hardware that is technically weaker compared to what Microsoft was able to come up with. It leaves a bad impression on the company’s talent and makes the competition look better.
“Sounds like Helldivers 3 is gonna be a sick Xbox exclusive”: The Discourse is Changing and Fans Think Xbox Could Benefit from the Helldivers 2/PlayStation Controversy
Despite having a much larger portfolio, what Microsoft just did is not a good look, and it puts those who are aspiring to have a career in game development at risk. These game developers are artists, and the studio serves as their place to work; unfortunately, they are just assets that can be moved around and disregarded by the people in power.
PlayStation Should Make Its Move Now Before Xbox Recovers
It is not too late for redemption; Sony can turn this whole situation upside down and may have already started by retracting its previous mandate and apologizing to the gaming community. Some fans believe it is not enough and have a long list of requests, likeundoing the censorshipinStellar Blade.
“People in the Xbox Community…”: Xbox Insider Parris Lilley Throws Fuel on the Fire with 1 Comment that Could Indicate Xbox Summer Showcase is Going to be a Must Watch
Rumors are circulating thatSony is gearing up for one massive Showcase, and it could give the competition a run for its money. It is a constant exchange of positive and negative events when it comes to the gaming industry, and fans are left with more questions than answers while the developers who previously worked in the closed studios are feeling abandoned.
Xbox has shifted its focus from releasing more games to eliminating first-party studios, while PlayStation is doing its best to recover from recent blunders.
What are your thoughts about the current status of the gaming industry? Let us know in the comments section below!
Rouvin Josef Quirimit
Content Writer
Articles Published :1209
Piqued by his interest in superheroes during the early days of Marvel movies, Rouvin fell in a rabbit hole of pop culture. His passion for movies led to video games and he fell in love with God of War, The Last of Us, Uncharted, Red Dead Redemption, and more great single-player games that paved the way for his career as a gaming writer.
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