Microsoft is shutting down Xbox Entertainment Studios, the division that was set to take over the living room of every Xbox One owner.
The Santa Monica studio will be shut to allow Microsoft to focus on strengthening its core videogame business.
The cuts will affect the majority of the staff that work at the Xbox Entertainmentâ€™s studios with the exception of executives Tellem and Jordan Levin along with other members of the team who will remain to work on original programs that are already in production, such as the upcoming documentary series â€œSignal to Noiseâ€ and â€œHalo: Nightfall.â€ The â€œHaloâ€ television series which will continue as planned, according to Phil Spencer.
These cuts are part of Microsoftâ€™s company-wide restructuring, which will mean over 18,000 jobs will be lost in the next 12 months. However the Xbox One will remain part of the Microsoft franchise according to
Chief Executive Satya Nadella in a recent memo to Microsoft staff.
â€œWe are fortunate to have Xbox in our family to go after this opportunity with unique and bold innovation. Microsoft will continue to vigorously innovate and delight gamers with Xbox.â€ said Nadella.
Xbox Entertainment Studios failed to deliver the entertainment content that they promised. According to sources the team behind the living room domination were disorganized and didn't have a real business model, so it stands to reason that it would be axed.
Phil Spencer has stated the company will "continue to support and deliver interactive sports content like â€˜NFL on Xbox,â€™ and we will continue to enhance our entertainment offering on console by innovating the TV experience through the monthly console updates,â€ Spencer said. â€œAdditionally, our app partnerships with world-class content providers bringing entertainment, sports and TV content to Xbox customers around the world are not impacted by this organizational change.â€
This isn't all doom and gloom for the Xbox One as many are claiming, but in fact could be seen as a positive turning point for the console. With less focus on entertainment based content and more focus on games this could turn out very nice for us loyal Xbox One fans.