Microsoft Ditches X-Box Digital Studio During Massive Round of Layoffs

The world of digital video and online entertainment is getting more competitive every day, and it looks like Microsoft couldn’t take the heat. In the wake of the company announcing 18,000 layoffs, many were curious about the fate of the software giant’s newborn but struggling digital content division, X-Box Entertainment. Now it seems we have an answer. Multiple media sources are reporting that the company will wind down operations at the digital studio in the coming months.

Several key executives will stay on the wrap-up projects that are already underway, but it looks like it’s the last days of Rome for Microsoft’s latest adventure in the world of entertainment. X-Box Digital Studio is best known for creating original content tied to Microsoft’s popular offerings in online gaming, including a feature film based on the video game “Halo,” which is currently in production and will reportedly be completed before the shutdown.

Microsoft jumped into the world of entertainment in a big way after the release of its X-Box One console, which has become a premier platform for gaming and entertainment. It made sense for Microsoft to become a content creator in its own right and so the software maker established its own digital studio to make a run at producing for its own popular platform. Results were mixed and the studio never really found its footing, a fact that almost certainly contributed to today’s announcements. There is a great deal of pressure on brands to also become content creators in the digital space, but for a struggling brand like Microsoft the competition may have been too intense.

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