Xbox president responds to studio closures as "commitment to make sure that the business is healthy for the long term"

Xbox president Sarah Bond has responded to the recent studio cuts at Bethesda, describing the decision as “our commitment to make sure that the business is healthy for the long term”.

Bond was interviewed at the Bloomberg Tech Summit yesterday, following the news earlier this week Microsoft has closed a number of Bethesda studios: Arkane Austin, Tango Gameworks, and Alpha Dog Games.

However, the interview has since gone viral due to Bond’s seemingly weak answers that provide little insight into the decision.

Firstly, Bond was asked about the current lack of growth in the video game industry, something Phil Spencer said he was “most concerned” about following the company’s decision to lay off 1900 people.

“The last year or so in video games, largely the industry’s been flat,” said Bond. “And even in 2023, we saw just some tremendous releases, tremendously groundbreaking games. But still, the growth didn’t follow all of that.

“A lot of that’s related to our need to bring new players in and make gaming more accessible. But all of that has been happening at the same time that the cost associated with making these beautiful triple-A blockbuster games is going up, and the time it takes to make them is going up.

“And so, so much of our focus as Xbox is about how we do things to help the industry all up, while also ensuring that our brand, everything that we do, is there through this moment of transition.”

Bond was then asked more specifically about the recent studio closures.

She replied: “It’s always extraordinarily hard when you have to make decisions like that… When we looked at those fundamental [industry] trends we feel a deep responsibility to ensure that the games we make, the devices we build, the services that we offer are there through moments. Even when the industry isn’t growing, when you’re through a time of transition.

“The news we announced earlier in the week is an outcome of that, in our commitment to make sure that the business is healthy for the long term.”

She continued: “But that said, our commitment to having our own studios and working with partners to have games large and small, we’re a platform where you can play GTA, but you can also play Palworld, where you can play Call of Duty and you can also play Pentiment, that doesn’t change. And frankly, our commitment to Bethesda and the role that it plays is part of Xbox and everything we do.”