So Why All The Microsoft Game Group Firings?

Microsoft said they were sacking 1,400 people across the entire company, yet a disproportionate number of those cuts fell upon the (relatively) small gaming group. What gives? Did somebody piss in Steve Ballmer's coffee?

In the literal sense, no, but somebody looking at Micosoft's research & development budget may well have exclaimed "oh man, the entertainment & services division is sure pissing in everybody else's coffee".

Look at this graph. It shows the R&D spending across the entire company in the six months leading up to December 31, 2008. Now look at the far right. Look how much the entertainment & services division (the Xbox, Games for Windows, Zune & Windows Mobile guys) blew through.

They spent more than the Windows guys!

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animboo3429d ago

if you believe the rumor, they've been buying a lot of exclusives, exclusive dlc, all those advertisement so its a no brainer that they're spending a lot of Microsoft dough.

Le Idiotce3429d ago

Company restructuring due to problems…and naturally they pull the plug on the worst performing divisions.

What? You expected them to pull the plugs on good performing divisions? That makes no sense. Xbox division getting the plug is a given.

Pay more attention at school.

MasFlowKiller3429d ago (Edited 3429d ago )

they should spend more money making games i mean exclusive DLC and Ad is not the best way to show just how much you care to your fanbase specially when the DCL come almost a year after the actual game(GTA4). but hopefully E3 will show us what MS been working on behind close doors for us.

The Lazy One3429d ago

it's not poorly performing. It's outlook is better by a good amount of others(note: It's entertainment and devices, not just gaming. They're in charge of the zune, windows mobile, and porting windows aps to apples.)

Seriously, read a flippin wall street journal or watch CNN or something. It might change your life.

memots3429d ago

We are gonna see more and more of article like this. Its a sad year for gaming and well for the world in general.
Everyone keep your fingers cross that we get out of this asap.

Also ain't that weird that this article is only 170degree and not top of the page.
I don't know if any of you remember how hot the article got when there a "rumour" that sony was doing some restructuring and if i remember right 2000 employee were affected?

DJ3429d ago

So much as how much profit they Should've had. You can't reward a lack of efficiency.

The Lazy One3429d ago

he never said anything about efficiency.

He was replying to this "and naturally they pull the plug on the worst performing divisions."

which is not the case. The inefficiency is almost certainly the cause of the cutbacks (through the whole company). It's not performing poorly, as idiotce said; it just isn't performing as well as it could be.

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Gobuz3429d ago

5 minutes after he made the cuts to Xbox division.

PirateThom3429d ago

I'd love to see a Ballmer press conference. The man is brilliant.

Joey Greco RULES3429d ago

I love that clip. Thankyou for making my day a lil less boring.

Mr Microsoft3429d ago

Hey, the guy told me it was just powered sugar!

I didn't know it was going to make me feel like Superman. :-)

ultimolu3429d ago

Lol, I cannot get over that.
He's a psycho, lmao.

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Nathan Drake3429d ago

Maybe because the Xbox business being successful is an illusion,an illusion that only those that paid attention in School and work within Microsoft can see past?

Sarcasm3429d ago

Yeah the biggest mistake, $50 million on DLC instead of $50 million on a new IP that could have rivaled Gears of War 2 or even Killzone 2.

caladbolg7773429d ago (Edited 3429d ago )

I wonder if the buy-out moneys (like those used to purchase timed exclusives and exclusive DLC) were calculated in to Kotaku's XBOX360 budget numbers? I would assume so, but I'm not certain.

mcm3429d ago

It's simple, the 360 is selling well as the numbers show. What the numbers don't show is the money that the division pays out for exclusive games, exclusive DLC, and marketing blitzs countering all that profit. Do they teach economics in high school anymore?

So, yes the layoff do include the 360 gaming division. I hate to see people getting fired during this economic situation, but who ever made the decision to spend 30 million on DLC should be the first to go.

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Mr Microsoft3429d ago

I look good in pictures, don't I?

And yes, PirtteThom... I am quite brilliant, if I do say so myself.

Look, if you go over budget, then there is a price to pay. *shrug* It's just business.

pippoppow3429d ago

Whaaaaaaaaaaat?! Theses types of questions should be more prevalent. It's a question that justifiably should be asked and answered. I'm sure even diehard MS supporters must even be puzzled.

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