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A Kotaku Story Detailing Difficult Xbox Studio Workplace Conditions

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Video game website Kotaku recently published a story regarding the working situations in Undead Labs. The Microsoft-owned game studio apparently has difficult workplace conditions. This includes allegations of sexism, bullying, and burnout. 

The article details these, along with the company’s lack of direction that isn’t doing good for employee morale. It reports allegations that people are subjected to horrible working conditions at a time when other game development studios are said to have the exact situations. 

Xbox Studio Workplace Conditions

Earlier this month, People Make Games, a gaming channel on YouTube, reported that three famous indie studios had been found to have poor working conditions. An extensive article from VentureBeat has told of allegations that Moon Studios, Ori and the Blind Forest developer have oppressive working conditions. 

Activision Blizzard, one of the bigger studios and set to be acquired by Microsoft, is also under the microscope for its toxic work culture. The article published by Kotaku reports that Microsoft’s hands-off approach to its acquisitions may just be the culprit. It may mean that issues and problems may not be getting the attention they need, resulting in poor workplace conditions.

According to Kotaku’s story, the average game developer is not getting paid enough compared to their CEOs. While they are underpaid, those above them not only get shareholder payouts but generous bonuses as well. Looking at recent reports, you’ll also find that mistreatment lawsuits face these studios, whether big or small. 

The Need for Change

This is a long-delayed reckoning for the game development industry, and change is desperately needed. However, change is complicated, costly, and can take a long time. This may be the exact reason that even the better studios that place priority on a good work culture still come up short.

Phil Spencer, the CEO of Microsoft Gaming, said their responsibility is simple. They should do everything possible to ensure that everyone in the industry is treated well, with dignity and respect. In his talk to game developers last month at the 2022 DICE Awards, Spencer admitted that they have been advocating for this for a long time. But they still haven’t risen to the challenge along with other industry leaders.

The Xbox veteran also admitted to falling short in providing a safe and inclusive work environment to everyone in the industry. But his statements do not apply only to Microsoft but to all game development studios. One of these is State of Decay series creator Undead Labs.

After Spencer helped Microsoft with its acquisition four years ago, the game studio has undergone massive renovations. It has become a first-party studio from its lean indie beginnings. This resulted in the doubling of the studio’s size. But the loss of its charismatic founder led them to their current situation.

The State of Decay 3 sequel is already in the works. But several years on, and it’s still in the production stages. It is now facing allegations of mismanagement, misogyny, and burnout, among other things. In short, it did not live up to its inclusive Xbox first-party studio status.

The Employees

Several current and former employees have spoken about the issue, albeit anonymously, for fear of condemnation from the video game industry. Mixed emotions prevailed as many were optimistic and hopeful. Most agree that improvements are in order, while not a few consider their stay in the industry as a period of crisis. 

Microsoft PR reached out when given a long list of questions. Sadly, the response was filled with only statistics, background comments, and promises of positive changes. But as of yet, no significant changes have been seen to improve the Xbox studio workplace conditions.

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