Cost Cutting
Ongoing coverage on Cost Cutting.
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Xbox Cloud Gaming's new hourly cap is reportedly set exactly where Microsoft stops making money on it
Microsoft has reportedly implemented hourly caps on Xbox Cloud Gaming for Game Pass subscribers, with the limits set at the service's break-even point. Game Pass Essential users get 5 hours, Premium 10 hours, and Ultimate 15 hours per month. This move is attributed to cost pressures, including AI investments impacting server capacity, and a broader trend of cost-cutting within the Xbox division.
EA to Cut Costs by $700 Million Annually, Potential Mass Layoffs Inbound – Rumor
Electronic Arts is reportedly planning to cut $700 million in annual costs following its acquisition by the Public Investment Fund, Silver Lake, and Affinity Partners. This move is expected to lead to significant layoffs across the company, despite EA's current financial stability. New investors plan to leverage AI in game development, which could also impact staffing.
Xbox reportedly wants to put a stake in Blade and sell off Arkane, even though Todd Howard says development is going…
Microsoft's Xbox division is reportedly considering closing Arkane Studios or selling it off as part of a cost-cutting strategy, despite assurances from Todd Howard and Jean-Luc Monnet regarding the development of the game Blade. The game, which was initially slated for release this year, has reportedly been delayed to late 2027 and is running over budget, fueling concerns about its future and the studio's survival.
Ubisoft eliminates 93 roles in San Francisco
Ubisoft is eliminating 93 roles at its San Francisco office, with the layoffs expected to be permanent. This follows recent announcements of studio closures in Winnipeg and Belgrade, and a significant year-on-year decrease in net bookings. The company also secured a $1.25 billion investment from Tencent.
GameStop’s Rewards Program May Be Losing Its Best Feature – Report
GameStop is reportedly making significant changes to its Pro Membership rewards program, including the discontinuation of Pro Points for new members starting July 15 and for current members on August 15. This move, aimed at cutting costs, has led to dissatisfaction among some employees and customers. CEO Ryan Cohen was also mentioned in relation to his unsuccessful attempt to buy eBay.
Ubisoft Closing 2 More Studios Amid Further Cuts and Job Losses
Ubisoft is closing two more of its studios as part of ongoing cost-cutting measures, leading to further job losses. The company is implementing these cuts to manage expenses.
Microsoft will reportedly invite 7% of their US workers to retire early, as the Xbox division talk up "strong cost discipline"
Microsoft is reportedly offering a voluntary early retirement program to approximately 7% of its US-based employees, targeting those at senior director level and below whose age and years of service total 70 or more. This initiative, aimed at achieving 'strong cost discipline' within the Xbox division and the wider company, follows previous rounds of layoffs. Executive VP Amy Coleman stated the program offers eligible employees a choice for their next step with company support.
Like poetry: Take-Two fires its AI department to cut costs
Take-Two Interactive, the parent company of Rockstar Games, has laid off its head of AI, Lucke Dicken, and the majority of its AI department as part of a cost-cutting initiative. This decision comes despite CEO Strauss Zelnick's previous support for generative AI technologies to reduce costs and increase efficiency.
Fortnite Is Ditching Several Modes Including Rocket Racing Amid Layoffs and Cost-Cutting
Epic Games is shutting down several Fortnite modes, including Rocket Racing, Fortnite Festival Battle Stage, and Fortnite Ballistic, as part of a company-wide cost-cutting initiative that includes over 1,000 layoffs. The modes will be removed by April 2026 and October respectively, with Epic citing a failure to attract a large enough player base.
Epic Games Cuts Over 1,000 Jobs Weeks After Raising Fortnite V-Bucks Prices
Epic Games has announced layoffs affecting over 1,000 employees and a $500 million cost-cutting initiative due to a downturn in Fortnite engagement starting in 2025. CEO Tim Sweeney cited industry-wide challenges and unique company issues for the decision, assuring affected employees of severance and benefits. This follows a recent increase in V-Bucks prices and similar layoffs in 2023.
Ubisoft continues with its cost-cutting program as it cuts 100+ jobs and ends game development at its Tom Clancy studio…
Ubisoft has laid off 105 employees and ceased game development at its Tom Clancy studio, Red Storm Entertainment, as part of ongoing cost-cutting measures. The studio will now focus on Ubisoft's Snowdrop engine and IT support. This marks the third round of layoffs at Red Storm in three years, following similar cuts at other Ubisoft studios.
Netflix boss says Paramount acquisition of Warner Bros will result in "cuts in excess of $16 billion" within "18 months or so"
Netflix CEO Ted Sarandon stated that Paramount's acquisition of Warner Bros. will lead to significant cost-cutting exceeding $16 billion within approximately 18 months. This suggests that Warner Bros. Games studios, including TT Games and Rocksteady, will face scrutiny for cost-saving measures. Netflix withdrew its bid for Warner Bros. after Paramount increased its offer, securing a substantial breakup fee.
Ubisoft cut staff at Splinter Cell devs Ubisoft Toronto, as part of their push to save €200 million
Ubisoft Toronto, the studio developing the Splinter Cell remake, has laid off approximately 40 employees, representing 8% of its staff. This move is part of Ubisoft's broader initiative to cut costs by €200 million over the next two years, which has also involved layoffs in Paris and the cancellation of six games.
