Microsoft’s plan to cut 18,000 jobs across the company will take a big chunk out of their original programming effort, with Xbox boss Phil Spencer confirming that Xbox Entertainment Studios will close.
In a memo to Xbox staff, Spencer thanked former CBS exec Nancy Tellem and onetime WB Network boss Jordan Levin for their efforts at launching Xbox’s initial slate of original programs, including the “Halo” franchise and the forthcoming docu-series “Signal to Noise.”
“They have built an impressive slate of original programming and pioneered interactive entertainment on Xbox, such as the innovative reality series ‘Every Street United’ that succeeded in uniting audiences around the globe during the recent World Cup,” Spencer wrote.
While Xbox will follow through on new original programming that has already been developed, there was no indication in Thursday’s announcement of future plans to develop new series.
Xbox will, however, “continue to support and deliver interactive sports content such as ‘NFL on Xbox,’ and we will continue to enhance our entertainment offering on console by innovating the TV experience through the monthly console updates,” Spencer said.
Microsoft lured Tellem in the fall of 2012 to head up their Xbox studio arm and help develop popular video game properties into television series.
Her future at the company, along with Levin’s is now unclear. The Wrap reported that most of the studios’ 200 staff will be laid off.
Variety reported Thursday that “Halo” is in “advanced negotiations for a pickup at Showtime in a shared window with Xbox.”
Microsoft CEO Satya Nadella is attempting to bring more focus to a company that many believe spread itself too thin under former chief Steve Ballmer.
Read More: Variety, Re/Code, The Wrap
Brief Take: Microsoft’s plans to produce original content were perhaps too ambitious for a company that had little production experience and was joining an already crowded field of content providers.
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