Microsoft closes studio for its own video productions

Microsoft is closing Xbox Entertainment Studios, a division that focused on video productions that could be viewed exclusively on Xbox. Existing projects, such as a series on Halo, will still be completed.

The closure is part of a major restructuring that Microsoft announced on Thursday that will see the software giant cut 18,000 jobs worldwide. The number of jobs lost in the closure of Xbox Entertainment Studios, which Microsoft has confirmed to Recode, is limited: it employs 200 people, although it is unclear how many of them will soon be out of a job.

The studio will complete existing productions, such as a series on Halo and a documentary on the rise and fall of Atari. According to Recode sources, the studio lacked organization and a clear vision, which meant that it was unable to secure good content deals. Until now, the studio had only actually introduced one production: a series about street football.

It’s unclear what the decision means for Xbox Originals, which were announced by Microsoft at the end of April. Film producers Steven Spielberg and Ridley Scott, among others, would collaborate on content exclusively for the Xbox.