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[Schreier] Microsoft’s Xbox Is Planning More Cuts After Studio Closings

XXL

Member
A bunch of us told you this was going to fucking happen.
If You Say So Shrug GIF
 
Ninja theory is certainly going to be shut next, hellblade 2 has no hype, especially not after stellar babes.
Why would it have hype though, the first one was such a niche title. And now I feel like MS tried to build up the sequel to something it was never meant to be. Hellblade 2 won't save Xbox.

They needed another Gears of War 1 moment but it looks like that is not going to happen.
 
If you want a clear picture of what will happen (already happening) with Xbox as a console, look at what happened with Windows Phone. Satya Nadella rules everything (and stockholders).

Nadella abandoned Windows Phone and surrendered to Android. MS doesn't make money selling Xbox Consoles, and the more your content/games are available for more devices, more money you will get, AND Money is everything for MS (oof, Xcloud clearly is not helping them at all).

MS will release everything everywhere (VERY SOON), but imo will still making xbox consoles for those who wants (look at it as the "Steam Deck" level of "selling").

I'll say it again, the more big studios you have, more money you need to make big games... and if you not growing in sells and services enough, ....well. There it is.
 

diffusionx

Gold Member
It wouldn't surprise me if we start seeing a mass exodus from companies like Double Fine, Ninja Theory, Obsidian, and Machine Games. Especially after their current projects ship. People need to get ahead of this and the writing is on the wall.
 

Punished Miku

Human Rights Subscription Service
But thats not people's fault, no one can honestly blame the consumer for any of this
I just did. This isn't complicated. If you don't like the product, don't buy it. That's fair. My point is that it was one of the only things pushing back against the impending AAA doom spiral, and now that the strategy was not adopted by consumers, all that's left is full steam ahead on AAA and safe IPs. Of course I can blame consumers for that. But they've demonstrated very consistently that this is what they want.
 
UdOdrQU.png

Thanks for telling them how it is PuMi !
Honestly, it's a shame people didn't support some of these smaller Xbox games (Pentiment, Hi-Fi Rush, As Dusk Falls, Psychonauts 2, etc.) over the last 3 years, or a sub service full of indies and experimental titles. I think they were trying to turn towards AA, but few consumers followed. GP would have been that safety net, but everyone on here just shit on them for not having AAA games. Shame.
 

bender

What time is it?
Bethesda is no longer safe due to the crapshoot that was Starfield, and their inability to develop games in a satisfactory amount of time.

iD Software will be missed, but sadly they aren’t a big seller anymore, Doom only sold 5m on steam.

Halo and Gears have both been trending down since their third entries.

Blizzard’s skating on ice, Overwatch is dying, Diablo IV wasn’t well received, and all that leaves is WoW has been floundering for years.

Hard disagree on Bethesda as you can slap Fallout or TES on a turd and it will still do gangbusters I still think they'll keep prestige titles until they absolutely run them into the ground.

I also forgot Minecraft.
 

near

Gold Member
I'd say your sentiment was true prior to the Activision acquisition but that investment has made them care and now we are seeing the repercussions of that care. The gaming division isn't playing with monopoly money anymore.
The way I see it is that MS knew they'd have more staff and studios than they wanted with the Activision purchase, they're just trimming because they can. Stupid money, stupid decisions.
 

FewRope

Member
I just did. This isn't complicated. If you don't like the product, don't buy it. That's fair. My point is that it was one of the only things pushing back against the impending AAA doom spiral, and now that the strategy was not adopted by consumers, all that's left is full steam ahead on AAA and safe IPs. Of course I can blame consumers for that. But they've demonstrated very consistently that this is what they want.
aint no way bro
 

Punished Miku

Human Rights Subscription Service
aint no way bro
People not subbing to GP or buying Xbox consoles = GP style games being phased out and Xbox consoles being phased out.

This is just a plain fact. Like I said, if you don't like the product, obviously you wouldn't buy it. That choice is obviously what leads to whether a product succeeds or fails. This isn't controversial. People are choosing known IP, and big budget AAA, and that's a huge part of why Sony is dominating so much. Why is this controversial? Consumers are not choosing Xbox or GP in large enough numbers. Do you think consumers do not have free will? I don't get the argument here.
 
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Half as powerful and $100 more expensive.

There was no saving Xbox from that. The whole brand died when Mattrick's Folley became the official design.
Xbox has only persisted this long because of Microsoft's wealth.

Sure, keep blaming Mattrick 10 years later....

LOL
 

bitbydeath

Member
Hard disagree on Bethesda as you can slap Fallout or TES on a turd and it will still do gangbusters I still think they'll keep prestige titles until they absolutely run them into the ground.

I also forgot Minecraft.
I included Minecraft on the safe list, along with COD and Candy Crush.

The question around Bethesda is if MS are willing to wait another 5+ years, and if ES is still running off that old engine it could further jeopardise sales.
 

rm082e

Member
I still do not believe they will make this year's COD a part of Game Pass at the current service tier and price point when it launches. They'll either chicken out and make people pay for it, or they'll introduce a new higher end tier for even more money and the new COD game will only be available on that one.

Maybe as a consolation prize they make a few of the much older COD games (4+ years) available on the current tier of Game Pass.
 

JohnnyFootball

GerAlt-Right. Ciriously.
People not subbing to GP or buying Xbox consoles = GP style games being phased out and Xbox consoles being phased out.

This is just a plain fact. Like I said, if you don't like the product, obviously you wouldn't buy it. That choice is obviously what leads to whether a product succeeds or fails. This isn't controversial. People are choosing known IP, and big budget AAA, and that's a huge part of why Sony is dominating so much.
The worst part is that Sony gave them a blueprint to be successful. Invest in your first party studios and IPs. That's literally it.

People talk about Microsoft's wealth being an advantage, but it was a disadvantage in that it cut them off from any sort of responsibility and the ability to make hard decisions and accountability.
 

nial

Member
My point is that it was one of the only things pushing back against the impending AAA doom spiral, and now that the strategy was not adopted by consumers, all that's left is full steam ahead on AAA and safe IPs.
Lol no, it wasn't. SOME AA games being produced around this time does not mean that it was a general pushback against the AAA model. All I remember is MS heavily promoting Halo Infinite, Forza Horizon 5 and Starfield around it. What were customers supposed to learn fron it, again?
People are choosing known IP, and big budget AAA, and that's a huge part of why Sony is dominating so much.
Imagine being this hurt over big boy MS not knowing how to handle their console business.
 
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bender

What time is it?
The way I see it is that MS knew they'd have more staff and studios than they wanted with the Activision purchase, they're just trimming because they can. Stupid money, stupid decisions.

They've had pressure from large investors to get out of the gaming space (amongst other ventures) for over a decade so I'm sure the Activision acquisition came with an army of executives and accountants and they've got the red highlight tool in excel working overtime. This team is spending how many manhours per week on a patch for a game that sold y amount of units. Cut.
 
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OverHeat

« generous god »
« We are in a unique position to outspend the competition « go on to close those acquisitions 😂😂🤦‍♂️🤦‍♂️
 

nush

Member
*checks*
"What the fuck is all of this? Close everything!"

You joke, but I've actually witnessed this for real. A company I worked for was sold to our competitor, now before the purchase they sent an auditor to look at everything and make a report. But he didn't ask the right questions, didn't drill down for the details and gave them the green light as a "Good purchase".

It was only once they had dropped the cash that they actually saw what they had brought. "Wait you don't actually own that factory?" No, it was just leased. "You don't own the production equipment?" No, it was just leased. "Where are all your, creatives, engineers, developers?" Well, the former owner threw us all a lifeline to come and work for him before the purchase was finalized (not that we told them that as we no longer worked there).

The only thing you actually got was, IP, brand name, patents and sales, customer support and marketing staff you already have and don't need.

That company the talent went to work for? Activision. :messenger_tears_of_joy:
 

midnightAI

Member
and that leaders across the division had felt understaffed. They decided to close these studios

Heh, why does that read like "they complained... so we shut 'em down"
 
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Danny Dudekisser

I paid good money for this Dynex!
The insider scoop I've been hearing is that it's going to get a lot worse over the next couple of months. Like, Thanos snap levels of cuts.
 

jroc74

Phone reception is more important to me than human rights
Honestly, it's a shame people didn't support some of these smaller Xbox games (Pentiment, Hi-Fi Rush, As Dusk Falls, Psychonauts 2, etc.) over the last 3 years, or a sub service full of indies and experimental titles. I think they were trying to turn towards AA, but few consumers followed. GP would have been that safety net, but everyone on here just shit on them for not having AAA games. Shame.
Here's a thought.

It's a wild concept so bear with me...

Don't put your exclusive games on your sub service day one.

Movie studios walked that back almost 2 years ago with movies.
 
“with no software and services growth and sharp hardware revenue decline.”

You ain’t seen nothing yet Microsoft. You wait and see how much hardware decline you face next generation.
 

bender

What time is it?
I included Minecraft on the safe list, along with COD and Candy Crush.

The question around Bethesda is if MS are willing to wait another 5+ years, and if ES is still running off that old engine it could further jeopardise sales.

That's why I think the likes of Obsidian are safe or anyone who can contribute to spin-offs, map packs, etc. Ironically what people criticized Activision of doing with COD, just on a larger scale. The engine doesn't matter as people liked Oblivion, F3, NV, Skyrim, F4, and F76. People started to see some cracks in Starfield but I think those would have largely been overlooked to if it weren't for some other design decisions that run counter to what TES and Bethesda Fallout are.
 

Punished Miku

Human Rights Subscription Service
And to think there was people who called this and just got the cocky MS warchest lecture.
tenor.gif
Who called that buying Activision would lead to MS exiting the console business, going third party, and closing many studios? I really only recall people saying it was going to be a horrible monopoly and threaten PS.

Here's a thought.

It's a wild concept so bear with me...

Don't put your exclusive games on your sub service day one.

Movie studios walked that back almost 2 years ago with movies.
Well like I said, I like that service. But the consumers spoke and they don't want it. This is what I was saying. You have to accept the market reality eventually. Doesn't mean I can't prefer a service that showcases smaller games and shares the risk around. Now that it's going away you see the calculus changing.
 
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I don't understand how they can let people go while also claiming that they're spread too thin. Just reorganize the talent that you have if understaffing is really an issue.
 

Killjoy-NL

Gold Member
Subbing to GP is fine. Not sure how many times that has to be said. The issue is not enough people did it.
Because most people don't think it's worth it, so it's far from fine.

Most people already scratch their heads on why they actually bother subbing to a service like Netflix, let alone one revolving around games.

Anyway, MS and Xbox have always been shit. Surprised it took people this long to notice.
 
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Panajev2001a

GAF's Pleasant Genius
What’s with this dumb talking point that without activision blizzard they’d be down revenue wise. That’s like saying without the house I bought I’ll be homeless.
Whoa… it is the secret to make money.

If I spend $75 Billion each year to buy a company that makes about $8-9 Billions a year, it is like printing money. Genius!

;).
 

ChiefDada

Gold Member
What more is there to say at this point? I genuinely feel sorry for the green rats who were brave (foolish?) enough to keep eating the bs Phil and Co. served.
 

WoJ

Member
If you're saying it's a shame that the smaller titles didn't do well despite being higher quality, but it's fine to sub to gamepass that's missing the point. Part of the reason those smaller titles didn't survive is because they were on GamePass. If GamePass worked as a service and actually made money then it's no harm no foul, but GamePass is a total failure.

How has Phil not been publicly fired at this point?
 

bender

What time is it?
Who called that buying Activision would lead to MS exiting the console business, going third party, and closing many studios? I really only recall people saying it was going to be a horrible monopoly and threaten PS.

I think there were plenty of people that were dubious about Microsoft making COD exclusive, even before all the Jim Ryan wrangling and before the 10-year agreement came to be and even more people were concerned about consolidation leading to cuts in staff and studios.
 

bitbydeath

Member
That's why I think the likes of Obsidian are safe or anyone who can contribute to spin-offs, map packs, etc. Ironically what people criticized Activision of doing with COD, just on a larger scale. The engine doesn't matter as people liked Oblivion, F3, NV, Skyrim, F4, and F76. People started to see some cracks in Starfield but I think those would have largely been overlooked to if it weren't for some other design decisions that run counter to what TES and Bethesda Fallout are.
Larian hilariously called Obsidian out yesterday in response to the closures.

imagine reading that and working at Obsidian

Probably due to their upcoming game that is not being received well.
 

recursive

Member
Honestly, it's a shame people didn't support some of these smaller Xbox games (Pentiment, Hi-Fi Rush, As Dusk Falls, Psychonauts 2, etc.) over the last 3 years, or a sub service full of indies and experimental titles. I think they were trying to turn towards AA, but few consumers followed. GP would have been that safety net, but everyone on here just shit on them for not having AAA games. Shame.
To me this reads like you are blaming the consumers for MS poor performance. What exactly do you think the consumer should have done differently and why? Market decides what a good product is.
 

NickFire

Member
All this horrible news right before their June showcase or whatever.

Perhaps this is the final step in conditioning their audience?

I mean, with all this bad news, who would be mad at them for going third party and saving jobs while minimizing price increases?
 

FunkMiller

Member
The insider scoop I've been hearing is that it's going to get a lot worse over the next couple of months. Like, Thanos snap levels of cuts.

Burn It To The Ground GIF by Parker McCollum


No joke. Far better for the whole thing to collapse, than just the poor game devs get fired. They’re getting fucked whatever happens, that much seems certain. And talented people can find new jobs in better places.

But it’d be nice to see some executives taking the express elevator to the ground floor, as their greed ruins them.

Thats a more general comment. Not just Microsoft xbox.
 
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