Microsoft will shut down the Xbox Entertainment Studios, ending an ambitious foray into original video programming - Recode
closing down studios, things aren't looking so good for ms :p
Actually, if you read into it, this doesn't sound so bad (remember the closures at Sony HQ and how that restructuring was normal and good according to people on here?) "Sources paint a picture of a disorganized studio that struggled to close deals and lacked a fully fleshed-out business model." So why not get rid of it? "The Santa Monica studio, with its estimated 200 employees, will be shuttered as Microsoft focuses on strengthening its core videogame business. " Again, is that not a good thing? Trimming the fat and streamlining the business?
The logical answer is Yes. Of course, emotions doesn't run on logic. ^^;; @system22 Bro you kinda forgot their Movie and Music business. ^^ Also, they didn't just cut production of the "cancer" known as the TV division. They spun it off too. (which they should have done a long time ago)
Ya logic on n4g does not exsist.
It's not even a gaming studio ... MS announces tv shows and gets reamed, then they close the studio producing the tv shows (and NO games) and that's bad? Make up your minds.... @bigbic you do realize that MS is more than just a gaming business right? 18,000 people comes from 14,000+ from nokia, tv and marketing jobs, etc. VERY little of the layoffs will come from game studios... considering a 14% of all jobs at MS are going away and seemingly no GAME studios have been effected, in fact new studios are coming up like black tusk, LXP, etc
"The Santa Monica studio, with its estimated 200 employees, will be shuttered as Microsoft focuses on strengthening its core videogame business. " Holy... wow they aren't playin Nadella and Phil are serious about gaming.
@MelvinTheGreat Well I did say that N4G comment section is the best place to melt a sane persons' mind. :) Its like a bad habit, only the side effects doesn't kill you. lol!
But you see to my understanding MS is getting rid of the very thing that people hated since the reveal of the company, MS is now axing all for the sake of gaming. This is MS 50th 180 for sure but its another significant 180 however. Why do I get the feeling Santa Monica Xbox entertainment studios will turn into a full fledged gaming studio now.
Now if this was Sony.....nvm. Xbox fans are the biggest hypocrites. Xbox One is no longer very important to MS it seems. This shows that when the time comes to axe Xbox One, MS will not hesitate to drop the blade.
"Now if this was Sony.....nvm. Xbox fans are the biggest hypocrites." Spare a thought for the Sony fanboys doing damage limitation when Sony was facing similar troubles, albeit with its GAMING depts. But hold on...I thought TV was a bad thing remember? Wouldn't this be a good thing? TRUE hypocrisy right here.
@septic Are you trying to reason with these guys? Most like nxtlevel above are just plain ignorant. The Santa Monica studio, with its estimated 200 employees, will be shuttered as Microsoft focuses on strengthening its core videogame business. Keyword - strenghtn its core videogame business. Nice Also in the article both Halo TV series will continue and .. “I have stated this before, but for Xbox to be successful, we must remain committed to being a consumer-driven organization with the mission of meeting the high expectations of a passionate fan base, to create the best games and to drive technical innovation.” It seems nadella&spencer are fully focused on delivering games here on out. This is what he meant by streamlining their efforts and focusing on what matters and besides we still get the Halo tv series as promised. MS is settingall their divisions up for proper growth. Every department will be better organised now. Most of the PR blunders were caused by lack of proper communication between all MS departments. executives not knowing what was going on in the other divisions was a big issue. Mr A says something and Mr B comes around and says something else. This reorganisation will help put issues like that to rest. Everybody works closely together all trying to achieve a common goal. Those who aint adding value to the core xbox business are cut off.. .its all about the Games, Games and Games....Its called streamlining baby. Welcome to the new MS and Nadella is leading the charge.
Actually you forget. Sony "trimming the fat" meant Sony is DOOMED, Sony is going under, what is happening at PlayStation!!!! Xbox fans trolled the ever loving crap out of those articles claiming demise! But Microsoft closing an entire Xbox studio and Microsoft laying off 18,000 people just means trimming the fat a bit... No need to try and turn it around on Sony fans here, Microsoft fans are showing the absolute most hilarious view change in ages.
@bigpic I never agreed with all the sony is doomed articles but this is nothing like that. MS isnt cutting jobs because they are desperate to make profit. They have been making profits since the 80s. MS is very healthy. Every CEO has had to do job cuts over the years to better re-align the company and loose dead weight and remember MS already had a staff strenght of over 110k workers before aquiring nokia (with its 20k plus staff strength). That's huge. MS isn't in any financial trouble, they've never been infact over the years theyve actually helped bail out other companies who where in financial stress at some point in time. Sony on the other hand needed to cut jobs, teams and sell off some divisions& buildings to try to make profit. These are two very different scenarios and besides it seems xbox game studios isn't even affected and going by nadellas letter he will only keep expanding and growing their inhouse dev teams.
^ So it shouldn't be taken into account that Sony Re-hired people in their game business to make up for the layoffs, and the layoffs were not due to trouble at Sony's game division, yet people claimed doom still? Sony is very prosperous in their game sector, perhaps much more so than Micro, yet people claimed doom when they reduced workers. Sony is looking to make a steady net profit after the next losses, yet I don't hear all those same fanboys claiming Sony is saved! Obviously the intentions of people on this site were to promote the idea of doom regardless of if it was logical or not, are you defending them? Micro could just as easily get rid of Xbox as Sony could get rid of PlayStation.
Its not so good for the people who saw these shows as further incentive to buy an Xbox One. For the customer who is only interested in games its great news though. But share a moments thought for the unlucky people looking forward to the episodes.
But, Septic, your Xbox brethren balked at the idea that the same was true for Sony. It was only bad news, and yet another sign that Sony was going bankrupt. Anybody who suggested anything else was a blind fanboy in denial. What's different here?
I just want companies to make games....
@tiffac008 "Of course, emotions doesn't run on logic.; I've never understood this notion. Logic relies on some sort of emotion.
I wonder what happens to Quantum Break
I guess that TV thing didn't work out because NOBODY WANTED IT. Microsoft has been hush about whether or not this affects Quantum Break.
Sucks people are losing jobs though.... been there and I wasnt able to get unemployment checks because i somehow made too much.
Septic said "Remember the closures at Sony HQ and how that restructuring was normal and good according to people on here?" Are you talking about when Sony sold it's former HQ in Feb in Japan, making them a tidy profit and saving them huge dollars in overhead costs by continuing to lease the building instead of owning it? Or are you talking about when Sony sold it's US HQ building (which also made them a tidy profit) while moving their headquarters to another building down the street which they are also leasing, thus saving them long term overhead costs as well? I'm not seeing how this is remotely similar. MS Entertainment was making stuff they're no longer going to be making after they just a month or so ago started revealing what they were working on. Sony moved offices. How is that in any way comparable?
@ Melving logic does exist on N4G and he is one of the biggest troll on this site OT its good that MS is trimming out the fat but it looks bad in the eyes of some gamers. I hope MS can pull up from the spin tail they've got into.
@Soptie The difference here, between Sony and Microsoft, one company is coming off a year that saw record profits. This company will choose to get leaner and create agility. The other company is coming of a year of record losses. This company needs to turn those loses around or this publicly held company may be in trouble (leadership changes, etc. ) The Playstation division was Sony's only division that turned a profit. It had a hell of a year. Every other division took big hits.
It didn't even take them a year to realize that no one is interested in their original TV stuff. I'd say that's a positive step.
@TheDevKit It only means you are not an emotional person. Some people follow their minds' more than their hearts' and that's cool too.
I only have one question since I'm not a lawyer, how the hell can a huge company that makes billions of profit every year, even widens their profit margin year on year justify cutting 18,000 jobs? How is that remotely legally possible? Whats the reasoning? We need more billions than what we already make? With that said MS and Xbox are doing fine no need to get your panties off. This 'move' further proves their new vision of xbox as a gaming machine first.
@UltraNova If a role no longer exists then a company has every right to terminate their contract. It has nothing to do with the profitability of the company. If the company terminated employment but then re-filled that role then it would be a different story entirely, that's a no, no. If businesses had to keep every member of staff employed for as a long as they turn a profit then they wouldn't be profitable for long. Also, for those that are saying that Microsoft has cut a game studio, you should get your facts straight, they have cut a media/TV studio. So, no, it's not the same as Sony cutting their game studios a few months ago. People should take things for what they are, rather than bending the truth to fit their agenda. Also, I am not saying anything against Sony for what they did, before you start calling me a hypocritical, xbot, fanboy.
@bicbic except that MS numbers arent all red. If they were i'd agree with you.
your a hypocrite Septic when sony was having to shutdown some of its business you was saying there in trouble but MS do it and its streamlining the business.
@Alsybub If a major company decides they need to cut some fat, they can make any position redundant any time the wish. Saying that all of a sudden 18,000 jobs became irrelevant is plain insulting to the common reader to say the least all while the same company makes billions in profit. There lays the fundamental difference between Sony's lay offs and MS's where the former was losing billions while the latter made billions. So lets stop pretending my friend.
Well I find it suspecious that theu couldnt keep the studio but dire employees and replace them with a new team or teams of devs seeing as they kinda do need aone more first party studios... but it is an interesting developnwnt or will be in the future; for the time being they still have a console that is clearly less powerful by an American often no t iceable margin that a larfe portion of its design was based around being this tv media hub etc. Also I wanr to add that while I thoight thwir announcement of the console was a joke as it was a 'games console' but they went on about tv stuff. I am nor against tv stuff in general infact as somewhat of a tech guy I quite like it but only as an extra to my games console you have to have the games as the primary focus. Which is why I think ahutring the whole studio is abit extreme and why I didnt have an issue with powers nor the idea of sobys seperate film/tv studios dealing with that. Its also why I want itv player and 4od apos on my ps4 and iplayer to come to vita/ps tv... because despite that stuff games have been the main focus MS have been turning it around so closing the studio seems unnecessary and sceews ovwr the small portion of people that bought x1 for the tv stuff...
i think ms is in a more stable financial place than sony. sony had to shut down image works, sell off their pc arm, slowed production on their tv arm etc. in fact, the playstation is the only thing making sony money right now... that one division is not nearly big enough to support the entire company and margins on console hw sales are pretty thin - sometimes at a loss. neither company have had a stellar time recently but if we're going to go there, lets keep it in context. i'm concerned that playstation is going to spin off from sony and sony will tank.
Yeah, Sony noted it is looking to make a steady net profit for the first time in many years after the losses... Yet Xbox bias individuals still claim demise. I guess "trimming the fat" is only a good thing when MS does it right?
@system22 " i'm concerned that playstation is going to spin off from sony and sony will tank. " Its not Happening, i will tell you why, the point is in 40 years straight no JAPANESE company the size of SONY WITH A FREAKING OVER 138 BILLION + $$$ IN PHYSICAL ASSETS IS NOT GOING TO TANK! its just not going to happen, yes they have 96 Billion in Debt, but Sony also has over 19 Billion in reserve. A hostile Take over by the west is not even anywhere near on the cards. High debt is a natural defense against a Hostile take over . Again Sony by spinning off the TV section is saving over 1 billion in operation Cost's, that takes time to restructure,with over 136,000 employee's its not going to be quick. Again Playstation is not needed to be spin off because get this it already is a LLC, with 100% of its stock owned by Sony the Entertainment arm is not for sale. while Sony and Nintendo both have stated to investors that Gaming is a core part of the business, Microsoft just said to investors that xbox is not. That is the blunt truth of it, when Sony can sell a single building for over 1 billion $$$ and they have a TV manuf. that they could sell off, they are going to trim the toxic assets off. why do you think Sony set up a http://www.reuters.com/arti... If people do not think some of the holdings that Sony has held for over 20 + years is not worth much, than you have another thing to learn about real estate.
Just a quick comment further to what joeorc was talking about. People who don't know any better look at Sony's debt and view it as a bad thing. It's not in any way. Sony operates a Financial arm, a bank, a securities company and an insurance arm. All these financial institutions make money by creating, issuing and trading debt instruments. Sony bank alone, every time someone puts a dollar into their bank account, that counts as a debt for Sony because ultimately that money has to be paid back. Every insurance contract they issue needs to count as a debt because they have the potential to need to be paid out even though not all of them will be. You look at the way Sony's debt is structured, it's almost all due to their financial operations. Look at any bank or insurance company's debt for comparison. They have debts because it's their job to issue debt. That's how they make money. The worlds debt markets dwarf the stock markets. So yeah..like joeorc stated, Sony isn't going anywhere. There isn't a single financial analyst on the planet that's even talking about a potential Sony bankruptcy. The only reason anyone talks about it is because last year some time, some automated website with a simple formula spit out a "prediction of bankruptcy" for Sony that everyone in the business world rightly ignored but a handful of gaming sites picked up on to run "Sony's doomed" articles. It's nonsense.
@bigbic due to resrructuring still going on sony wont make a profit this year I dont think the year after however-that seems likely.
A well renown company like Sony is gonna tank, just like that. Logic isn't your strongest fort, is it?
It sucks for those losing their jobs but this move seems to solidify the fact that they are re-directing their focus to gaming. Silver lining.
Does the mercy rule apply to Xbox One cause this competition is no longer fair. MS doesn't know what play to call.
The mercy rule is only evident in the lack of posts where you can spread your dribble. Guess there's two sides to this BS N4G comment coin.
It's not a games studio. It was a video studio. Not really the same thing. You should read the article.
@The_Infected... Really... Read the article very carefully... XES - Xbox Entertainment Studio is the Santa Monica studio. And it is in charge of Video Programming... NOT GAMES...
Im sorry to say this, but as things are looking now, X1 might be a larger disaster than original Xbox was.
Your life must be really sad when all you have is trolling MS in hundreds of comments. The only explanation for your behavior: An MS employee stole your girlfriend. I cant imagine any other reason...get some fresh air, please.
That means Microsoft will be focusing at gaming business more
I'm sure you are hoping that is the case. Having been in this situation myself, I see it as a re-grouping with a renewed focus on what will work for the future.. MS isn't closing whole divisions or selling off property because it has to... It's focusing on the future and aligning it's business because it wants to. Sony had no choice... It is in trouble Big difference And before any Bronies jump on my nuts, I do not want Sony to fail. I own 2 Sony tv's, 1 Hd camcorder, 1 x AS15 sports cam, 1 x Sony camera, 3 x Sony consoles (inc. day 1 ps2 ans ps3 day 1) 1 x Sony amp and 2 x Sony Bly-Ray players. I also own 2 x MS surfaces (got rid of iPads) and 3 x Xbox consoles...
That was so well said it's ridiculous, bubbles for you my friend.
You are clearly delusional of you think Sony is just going to tank because you pulled those so-called facts from your mind. You don't hold a degree in Economics. Stop pretending you know what you're talking about.
Microsoft are worth 70 billion dollars while Sony are only worth 18 billion.
only 18 billion ? how much are you worth lol
I said "only" because 18 is not very much in comparison to 70. I'm responding to the idiot Sony fanboy that implied that MS is in financial trouble when they're worth over 3 times what Sony is. I prefer Sony products myself but i still despise fanboys who like to constantly bash the competition of whatever it is they're a fanboy of.
out like trout.
Not really, suprised they kept this studio opened, sad part is the guys who have no job.
"Xbox Originals"... okay? Like which ones? Not sure what they meant with that. Its certainly bad news, to lose your job due "changes" in the upper floor, but on a serious note besides the Spielberg Deal about a Halo TV Show.. what did ppl. expect from this "studio"? Btw. does anyone know what they have done in the past? €: Xbox Entertainment Studios was an American video game developer based in Redmond, Washington created internally by Microsoft Studios in 2012, in order to create "interactive television content" for Xbox Live. On July 17, 2014, Microsoft confirmed that the studio will be closing. http://en.wikipedia.org/wik... I think Micrsoft did the right thing. 3? Documentaries since 2012 + Halo TV Show is not enough for any company out there, to keep this alive (not knowing how well their prev. docus did). Not sure if this bodes well for the upcoming Halo TV Show, knowing that the Spielberg of the 21th centuray has lost his credibility (some say he had none, overrated director... in the 90´s), ...dunno if this won´t be just another "John Doe" TV Show ;)
Honestly, I think it was a good move. It doesn't look like they've really done anything.
Sad to see people lose jobs, but this was a good move for Xbox. This was gonna be a money hole and honestly i dont really know anyone who wanted it. They are mainly focusing on games which is the best vision. Hope all the people who lose jobs get back up quickly1
I never got this original programming idea (both from Sony and Microsoft) unless your trying to sell an independent service akin to Netflix. No one is going to be persuaded by TV shows to get a console plus subscription nor is it a one up move on the competition (I suspect indie games have a better influence than TV shows). Original programming works for services like Netflix because the asking price is so low (also it has to be good)
There is nothing wrong with original programming and it's actually a pretty good idea. Microsoft just had poor execution. They weren't really doing anything big with the service and they didn't have the resources to pull it off. Sony can actually pull it off because of the company's multiple entertainment branches.
That's just it- Netflix is raking in all this money and acclaim with original programming outside the TV network systems. So with the smell of money in the air, everybody wants a piece- Amazon, MS, Sony, probably others.
Lol I dunno, I was looking forward to halo.
Damn goes the dynamite! Xbox Entertainment studios shall be missed!
They never achieved importance to begin with to be missed. Should be interesting to see If Sony continues with it's planned television programs or not.
Well Sony is in the TV and film production business anyway so it's not a big deal for them to do it.
remember all the sony is doomed comments when they were laying off a few, ms are laying off 18,000 workers thats a massive number
some nearly 13000 of that were employees that MS inherited from Nokia, so saying "18000" is kinda... well its misleading, even though those 13000 Nokia employees were, technically, part of MS for a few months.
Wtf kind of dynamite goes "damn"? Where exactly are you from Sasuke?
Lmao said exactly what I was thinking..
Satya isn't playing lol "Sources paint a picture of a disorganized studio that struggled to close deals and lacked a fully fleshed-out business model. This inability to execute has turned off potential studio partners, they say, complicating the process of securing premium content." Cutting dead weight. I like it MS
Honestly this is a good move. THe only thing that gamers really cared about out of the Xbox Originals slate was the halo content, which can still come obviously. The time and money spent to try and make the original content can now go to making more games.