The rising cost of making 'beautiful triple-A blockbuster games' has been partly blamed for the closure of three Bethesda-owned game studios by Xbox president Sarah Bond.
The industry has seen growth challenges despite groundbreaking game releases in 2023, with increased costs and development time for AAA games affecting the overall landscape.
Microsoft's decision to close Bethesda studios was influenced by a need to ensure games, devices, and services align with industry trends and bring accessibility to new players.
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