Microsoft recently canceled an unannounced MMORPG from ZeniMax Online Studios. Thankfully, the studio has yet to see any layoffs, but that might not last.
Today, in a statement shared with IGN, the workers union at ZeniMax Online Studios broke their silence about the recent layoffs at Microsoft which effected over 9,000 individuals, including many at Xbox. The 461 employees at ZeniMax Online Studios voted to form a union in December, which is called ZeniMax Online Studios United, or ZOSU. This organization is also part of the Communication Workers of America. The elected workers are currently negotiating a contract with Microsoft, though an agreement has yet to be reached. According the organization, the studio has yet to be affected by layoffs, but that could change.
At the beginning of this month, Microsoft and Xbox shared the news of thousands of layoffs company wide. This resulted in thousands of game developers losing their jobs, along with studio closures and game cancellations. One of the most notable was the remake of Perfect Dark, which is now no-longer being worked on and the The Initiative (a studio formed to create this game) has been shut down. Rare, the studio behind Sea of Thieves as well as classics like Banjo-Kazooie, had their upcoming game Everwild canceled as well. Studios like the team behind Forza Motorsport reportedly lost about 50% of their team to layoffs, and that’s just covering some of the bigger stories.
ZeniMax Online Studios is best known as the team behind Elder Scrolls Online. The team was reportedly working on another MMORPG, that has now been canceled. According to ZOSU, approximately 222 employees were working on that unannounced title, and now, as of the announcement on July 2nd, are left in limbo. Regarding this news, ZOSU’s statement reads, “Undoubtedly, a future has been stolen from many of us and our community will never experience an amazing game. However, despite discussions regarding the status of our employment, the fact is: we have not yet been laid off.” On some level, this may have to do with the team forming a union.
But it’s not all smooth sailing from here, ZOSU says that “…we understand that for most of us something like a layoff is inevitable…” Later adding, “However, as a result of our organizing, we are able to ensure that those impacted will be able to depart with dignity.” Many employees at various Xbox studios learned of their layoffs around the same time that the news was coming out. We still don’t know the exact depth of the impact across the thousands of employees. But, at least at ZeniMax Online Studios, there is some level of safety from the sudden shock.
Hopefully, stories like these encourage more studios to unionize. In this volatile age of video game development, where thousands of employees can wake up to find they no longer have a job, working together can go a long way. Recently we have also seen Blizzard studios like the teams behind World of Warcraft and Overwatch 2 form unions as well.
Unions can be a life-saving tool for employees, as ZOSU says in its statement: “Where Microsoft has failed to support the talented craftspeople who have generated billions in revenue, our union has stepped up to provide clarity and support.” The time has long past for employees to rely on the good will of their corporate overlords. While layoffs might not be entirely preventable, a union can at least provide clarity and support where companies like Microsoft provide nothing but confusion and chaos.
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Author: Matt Buckley
Matt has been writing for Gamepressure since 2020, and currently lives in San Diego, CA. Like any good gamer, he has a Steam wishlist of over three hundred games and a growing backlog that he swears he’ll get through someday. Aside from daily news stories, Matt also interviews developers and writes game reviews. Some of Matt’s recent favorites include Arco, Neva, Cocoon, Animal Well, Baldur’s Gate 3, and Tears of the Kingdom. Generally, Matt likes games that let you explore a world, tell a compelling story, and challenge you to think in different ways.