Microsoft Xbox Division's Major Restructuring: What You Need To Know

Microsoft Corp (NASDAQ: MSFT) is undergoing a significant reorganization within its Xbox gaming and marketing leadership, following its recent acquisition of Activision Blizzard Inc (NASDAQ: ATVI).

"ZeniMax will continue to operate as a limited integration entity led by Jamie Leder, president and CEO, reporting to Matt [Booty]," Microsoft Gaming CEO Phil Spencer said in an internal memo, as reported by The Verge.

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The restructuring aims to enhance collaboration, streamline operations and prepare for the future of Xbox.

Matt Booty was promoted to president of Game Content and Studios, expanding his responsibilities to include ZeniMax and Bethesda, focusing on better collaboration between teams and avoiding issues seen with games like Redfall.

Redfall, developed by Arkane Austin, attempted to blend elements of Stephen King horror, immersive sims and loot mechanics but received criticism for being unpolished and incomplete.

Promised updates, including a 60fps mode and patches, were delivered six months post-launch. Spencer acknowledged the game's shortcomings and expressed accountability.

Sarah Bond was named Xbox president, overseeing both hardware and software platforms for Xbox. Her role is critical for shaping the future of Xbox, which may include a redesigned disc-less Xbox Series X in the near term and a next-gen hybrid console in 2028.

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Photo: Benedek Alpar on Shutterstock.