Why are Japanese developers not undergoing mass layoffs?
On 14th June, Tango Gameworks employees had a pizza party. It was the studio's final day following the announcement of Microsoft's decision to close the studio behind games like Ghostwire Tokyo and the award-winning Hi-Fi Rush, a decision that surprised many across the industry.The game had been released on platforms beyond Xbox for the first time mere weeks earlier as part of the company's new initiative to bring their titles to more platforms. As the company's only Japanese studio in a region of growth for Xbox and Game Pass after decades of struggling to break into the gaming market in the country, the decision also appeared counterintuitive.Layoffs and studio closures have been an unfortunately-common occurrence across the industry since last year, with layoffs in 2024 already matching 2023's total of over 10,000 developers being put out of work. Yet if there is one bright spot to find in this bleak reality, it is, ironically, in the same city as the departed Tango. Its closure, undeniably tragic, is an exception in a country seemingly insulated from the industry-wide devastation occurring beyond its borders. Read more
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