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Just hours after learning that Microsoft was shutting down a number of game studios this week, Dinga Bakaba, head of Microsoft-owned Arkane Lyon, decided to let the company know how he felt about the decision — right in public.

It was a rare public display of criticism, but sources at Microsoft tell me it reflects a growing discontent and fear among Xbox employees about what comes next.

“Hi-Fi Rush was a break out hit for us and our players in all key measurements and expectations,” said Aaron Greenberg, head of Xbox games marketing, just a year ago.

Greenberg and Xbox chief Phil Spencer both visited Tango Gameworks in September, playing games with the team and posing for group photos.

The depressing list of layoffs at game studios continues to grow on a weekly basis, with GTA 6 and BioShock publisher Take-Two laying off hundreds of employees last month and cutting projects.

I understand this is a debate that has been ongoing internally for quite some time, with concerns from some that the revenue that Call of Duty typically generates for Activision Blizzard will be undermined by Game Pass.


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