Microsoft's Xbox shuts multiple studios, consolidates teams in cost-cutting move

FILE PHOTO: Head of Microsoft Xbox Phil Spencer speaks during the Microsoft Xbox E3 2017 media briefing in Los Angeles, California, U.S., June 11, 2017. REUTERS/Kevork Djansezian/File Photo

(Reuters) - Microsoft's Xbox is shutting down a number of gaming studios including Arkane Austin, making it the latest publisher to shut down studios amid signs of a gaming slowdown.

Studios such as "Hi-Fi Rush" maker Tango Gameworks, headquartered in Tokyo, and Canada-based Alpha Dog will also be closed and some employees will be laid off, Matt Booty, head of Xbox Game Studios said in a memo that was seen by Reuters on Tuesday.