290°

Why Xbox believes it must cut costs and close studios

Companies, particularly public companies like Microsoft, need to grow.

Read Full Story >>
eurogamer.net
gold_drake19d ago

i mean its pretty simple, they spent close to 30 billion in acquiring activision, they thought they'd make it bk no problem, and that didnt happen.

its just shit that because of MS's miscalculation alot of people lost their jobs.

Jingsing19d ago

This is exactly what many people said would happen including the CMA and FTC. Lies lies and more lies and they allowed a $69 billion buy out to happen.

gold_drake19d ago

oh yeh it was 70 billion. that was my bad haha even worse.

JackBNimble18d ago

MS has educated financial advisers, they knew there was little chance to recoup the 70billion just to break even on the Activision deal let alone whatever other nonsense is going on in MS.
This whole thing was to corner the market for leverage.

thesoftware73019d ago (Edited 19d ago )

gold,

You can't be serious, right?

Do you think that MS thought they would make 80bill in a year & Half? They haven't even released titles under MS yet, lol.

But in fact, that A/B revenue is already paying off, look at the last earnings call. That $80 billion is long-term money, my guy, no sane person/company would think they would make that back in any short-term situation, it's a long-term investment.

Let's play silly then. If MS's reason for laying off staff and closing studios was due(which it really was not) to the A/B deal, tell me what Sony's reason was for past studio closures, the recent 900-person layoffs, closing Sony London, shutting down Dreams, and closing Japan Studio? Zipper? Psygnosis? cuts at all their internal studios.

Keep in mind, you are claiming MS's reason is because of the A/B deal; please explain Sony's reason.

Hofstaderman19d ago

You actually still defending them? Sheesh.....

gold_drake19d ago

this is not a sony vs MS debate. dont make it something it isnt.

and of course not, but im pretty sure they thought they'd make more money after the deal. they didnt, and closed off some studios.

its pretty insane to think there is any other reason for the closure of studios in this case.

romulus2319d ago (Edited 19d ago )

(It really was) due to the Activision Blizzard deal and the loss of physical sales due to gamepass. You keep bringing up Sony in all your posts about this, stop deflecting and trying to change the topic, this is about MS and what they are doing.

BehindTheRows19d ago

Has nothing to do with Sony. Stay on topic.

notachance19d ago

once in a while you see someone too invested in their make-believe console war that everything happened has to be connected to said war…

a bit of banter between fans is normal, this crusade you’re doing now isn’t.

Chevalier19d ago

Wow idiotic. You bring up very old closures not that there haven't been recent ones from Playstations, but, seriously stop deflecting. This has NOTHING to do with Playstation.

Does Playstation got $3 trillion behind them and daddies wallet? No they don't so stop making a fool of yourself.

Xbox has never been profitable really and they just keep losing money so between their worst hardware sales, terrible 3rd party sales and now terrible 1st party sales.

Gamepass numbers that are no longer being announced shows their numbers after 3 years of missed targets has flatlined. Plus their recent gains up to 34 million were ONLY because they folded Gold members in too. Absolutely take your idiotic rhetoric out of here. Keep on topic without deflecting.

S2Killinit19d ago

Ayayayay with these xbox/MS excuses.

Reaper22_19d ago

How dare you mention Sony! Everyone here knows when Sony closes a studio and lay off workers it was the right thing to do. Even when they bought Gaikai and fired almost everyone it was the right thing to do.

Gamers can be such hypocrites sometimes.

andy8519d ago

Is it? That's revenue not profit. Completely different.

fr0sty18d ago

The earnings call only showcased how dire the situation is... Even with ABK and Bethesda, they still couldn't make enough to keep investors happy, gamepass subs are stagnant, and hardware sales are tanking.

+ Show (7) more repliesLast reply 18d ago
thesoftware73019d ago (Edited 19d ago )

Drake,

"this is not a sony vs MS debate. dont make it something it isnt."

You are correct that it's not an MS Vs Sony Topic, but when exaggeration and imagination mix from a one-sided social group, similar examples are needed to ground radical thoughts; in this instance, the example was that shutting down 3,4,5, even 6 studios during a restructure/ buyout/acquisition is not some anomaly(it can suck) that has to be dissected or spell doom and gloom.

"But I'm pretty sure they thought they'd make more money after the deal. They didn't, and they closed off some studios."

But they did make more money, a lot, actually; the last earnings call showed a huge growth in profit, almost all due to A/B revenue.

"its pretty insane to think there is any other reason for the closure of studios in this case."

The fact that they did make money, kinda throws this out the window, and besides, you don't wake up and say, hey let's close a studio, you look at the output, you look at the dev as a whole, the long term and short term, you weigh it against all other studios and goals, you keep key members, ect..then you close if they are the weakest links...which by MS analysis they were.

Again, I will make a small Sony comparison, just so some of you can understand and see past the bias; Insomniac, ND, and Bungie have made some of the best games ever created, yet Sony saw fit to cut jobs in every of these studios, even tho Insomniac & ND are the biggest producers of PS games, leagues ahead better than Tango and Arkane, yet, they saw cuts, mind you, while being the TOP produces of PS first party. They were told to cut costs, and more jobs may be on the line, and Bungie is being threatened by a hostile Sony takeover. Put that in perspective, as I know that layoffs and dev closures are different, but if the best of the best is getting cut off, it is less than surprising, that lesser studios are closing.

@Cheva,
My response fits well with your comments as well. You even went on to prove that the dev closures are not just due to A/B acquisition. Then you point out Sony has less money than MS, inferring that MS should keep devs open that they see as lesser earners, while Sony having less money makes it okay to close them. lol...it doesn't work that way.

gold_drake19d ago

im not reading all of that. u have ur opinion, i have mine.

thats rly it.

but this aint sony vs ms.

ApocalypseShadow19d ago

You're trying to compare a 100 billion company to a company that has 3 TRILLION worth. SIE has to live or die on their own. And in turn, PlayStation has helped the main company again and again. Sony has to balance out what is working and not working in the company.

While Xbox has Daddy Warbucks footing the bill to keep the platform afloat. They have been bleeding money from Nvidia hardware in the OG Xbox, the RROD fiasco, the attempted 2013 DRM nonsense and the lies about being the most powerful console in the world and the losses of paying out millions to prop up a service hoping it catches on with enough subscribers to justify its existence.

They're not comparable if Xbox isn't allowed to live or die by its actions. It's subsidized. Revenue isn't profit. And if they were profiting on their own, they wouldn't be closing developers. If they were profiting, they wouldn't need Daddy Warbucks spending 80 to 100 billion buying up 3rd party publishers to sustain a loss leading platform.

They stopped announcing game sales, stopped announcing hardware sales, stopped announcing game pass subscribers, they are putting games on their competitors platforms but you're telling us that they are doing great even after killing jobs and closing developers at Xbox.

Stop drinking the Kool aid. You're drunk.

Chevalier19d ago

Again at which point did Playstation have a $3 trillion company shift the market with a giant purchase?

"But they did make more money, a lot, actually; the last earnings call showed a huge growth in profit, almost all due to A/B revenue."

Lol. No they didn't. Increased revenue was ONLY due to adding Activision Blizzard revenue in. Growth was only 1 percent. It's idiots like you that have no idea what they're talking about is why Xbox isn't better than it is. You guys just make excuses continually.

If Xbox got so much profit then why did they stop announcing hardware numbers? Why did they stop announcing Gamepass numbers? Oh right because they're NOT profitable. Their sales in every category has dropped off the face of the planet. It's why Spencer will be closing more studios and canceling upcoming projects too.

The Wood18d ago

How can they be profitable when they're not selling enough hardware, software or subs. You need take a seat on this one my friend unless you can prove you angles

jwillj2k418d ago

Sony didnt shut down the studios you mentioned after they made last of us or ratchet and clank or destiny. Cutting jobs is not equal to closing studios. Sony cuts are a candle in the sun of Microsoft’s closures.

+ Show (2) more repliesLast reply 18d ago
WelkinCole19d ago

I am pretty sure MS knew this would happen and this was part of their plan. I mean if anyone with half a brain can see this happening I am pretty sure a multi billion company like MS knew this would happen

The whole strategy in buying Beth and Acti/Blizzard is for

1. Buy established games they can have under xbox because they have done a horrible job in building their portfolio internally for the past 15 years

2. Following from 1, try and boost xbox competitivenss against a dominat PS which MS after 3 tries still can't crack

3. Follolwing from 2, try and weaken Playstation dominance by taking out these massive multiplats from the PS

4. Following from 3, try and profit off from the PS domiance with selected games they will still have on the PS to make money like COD

5. Obviously get the IP's by buying them instead of creating them which again as I mentioned in number 1 they have been woeful in doing

None of these had anyting to do with keeping all the devs they accuried. MS has always been very shitty to Devs under them. Look at what happned to Bungie for example.

I believe MS in court truely mean it when they said they had to do something because PS was just too dominant. This was their last roll of the dice.

And from the looks of things. It has not panned out as MS had hoped. PS5 is still as dominant as ever and xbox is still behind. Worse still their MP's they got is not irreplaceable as they thought. Starfield? lol!. There have not been any major shift in momentum in this console war in their favor so now its time to start cutting their loses and it starts with the most expensive cost for any company. People.

Michiel198919d ago

for a comparison, sony laid of a bigger % of it's staff this year than ms, it's what companies sadly do nowadays. If you think with GP and Bethesda + acti aquisition they were looking for quick cash, you couldn't be more wrong. It hasn't even been a year, "they thought they'd make it bk no problem, and that didnt happen." shows you have 0 understanding of how a business operates.

thesoftware73018d ago

@ Michiel1989

Exactly this!

I'm reading these comments, and it's mesmerizing how off-base most of them are.

I posted a few comments above, and their rebuttals have nothing to do with the points that I presented; when they start doing that, I just ignore them because, at that point, they're debating all over the place.

Profchaos18d ago

30 more like 70 to 80 plus 7 for Bethesda

Tzuno18d ago

meanwhile everything turned woke an inevitably went downward, i'd say it serves them well if they promote such kind of approach, mwuahahahahahhh!

+ Show (4) more repliesLast reply 18d ago
anast19d ago

They are going to use AI for a large portion of the game development process. Upper management need bonuses and the shareholders need more money. So, people will lose their jobs.

Skuletor19d ago

Maybe they were already using AI to make business decisions, which would explain why they closed Hi-Fi Rush's studio, then said they need more games like Hi-Fi Rush not long after that announcement.

Crows9019d ago (Edited 19d ago )

They shouldn't have bought any studios. Some is okay...but they went on a shopping spree...stupid

Einhander197219d ago

The better question is why did Microsoft buy publishers for a service they were subsidizing they knew couldn't support.

And why are so many websites trying to make people feel sorry for Microsoft instead of truly criticizing the fact they are closing studios and killing jobs that would have been fine if Microsoft themselves hadn't gotten involved.

Quit feeling sorry for Microsoft and start feeling sorry for the industry and the all the gamers who are actually losing out.

THIS IS MICROSOFTS FAULT.

RNTody19d ago

The first thing that happens after any major acquisition or merger is a consolidation of the whole new portfolio, which includes cutting any excess, bloat or portfolios that don't fit the larger MO of the big boy. So far, it's been par for the course with Microsoft and that's why gamers have been so against this acquisition. Tango Gameworks is the beginning. You think Microsoft wants to pay to keep small timers like Ninja Theory in business?

There is absolutely zero evidence to suggest that Microsoft will improve any of these studios, but plenty to suggest that they will get rid of what they don't need and hold onto the IP. The real agenda of the acquisition was always to acquire The Elder Scrolls, Diablo, Fallout, Call of Duty, Candy Crush etc. that will create millions in passive revenue stream for Microsoft regardless of where the games release. Microsoft simply wants their cut.

Because of Games Pass Microsoft has no interest in investing in new IP which is risky and requires creative talent they can neither nurture nor manage. Game Pass has also not grown in the way Microsoft expected it to, even post acquisitions. Therefore the logical thing to do, without serious money makers to release, is to cut as much cost as possible.

Show all comments (47)
190°

Kingdom Come Deliverance 2's Scope Was Impacted by Xbox Series S Limitations

Wccf tech writes: "Kingdom Come Deliverance 2's scope was impacted by the Xbox Series S hardware limitations, as developers could only make a game that was 25% bigger than its predecessor."

Read Full Story >>
wccftech.com
-Foxtrot9h ago

This is the issue with things like this

Xbox Series X is apparently to MS the worlds most powerful console

However the Series S is obviously a limitation because it’s underpowered and developers have to go for parity.

So what’s the point of the world’s most powerful console if you are holding third party developers back? They aren’t going to push themselves if they have to think about the weakest console.

The issue wouldn’t be as bad if it was just Xbox but you are also affecting the PS version aswell

I think developers need to start just taking advantage of a console and if one of them can’t do X Y and Z then f*** them…why should the others suffer. What’s MS going to do? The bigger the franchise the least chance MS are going to tell them to f*** off. Baulders Gate 3 seemed to have stood their ground and suddenly their “strict” parity rule didn’t really matter. We suddenly got super optimisation efforts for the Series S that got things sorted.

anast6h ago

I agree, and the sad part is use normal folk saw it the second they announced their plans.

Abear212h ago(Edited 2h ago)

Agree 100% this is why I didn’t want the M$ Monopoly, now PS5 version will be held back too.

If PS5 Pro comes out and Series S is still a thing it’ll be interesting what differences and what devs choose to do. Really hoping Rockstar pushes the PS5 pro with GTA6 and we get the best version possible.

outsider162419m ago

Good ole S indeed. Everyone knew this all along. S was holding games back...Now where the hell is Orchard i want a word with him.

LucasRuinedChildhood10h ago

More info from the author of the article, I think: https://www.reddit.com/r/ki...

Quote:
"1) I was told this info from the producer of the game Martin Klíma.
2) He specifically said the game will have only one mode.
3) And this mode is 4K 30 on PS5/XSX and 1440p 30 on XSS.
4) He said that the game is already running north of the 30 FPS cap so the performance should be stable on launch, much better than KCD1.
5) The limitation was XSS because of the 10GB memory. He said that's why they wanted to make the game 25% larger.
6) Speculation on my part: the output resolution is probably upscaled and the reason why there won't be a 60 FPS mode is because it'll most likely be very CPU heavy, like Dragon's Dogma 2 for example."

Doesn't seem like they're adding a 40fps mode on PS5/Series X for launch even if they can handle it.

Sgt_Slaughter6h ago

I'd much rather have 1440p/60fps or even 45fps. Having just one, even with the Series S in mind, is disappointing.

franwex5h ago(Edited 4h ago)

Remember when xbots were adamant that the series s won’t hold back the gen?

Microsoft just needs to let go of the mandatory parity. Who cares if your grandma doesn’t understand that a game cannot be played on the S. It’s not like it she can buy you a physical game for it anyway. Before buying the game put up a notice that it only works on series X. If you’re buying for a friend-allow for a refund.

Bam. Everyone is happy. Most series s owners are for casuals that want Game Pass anyway and most likely don’t purchase most games.

If the developers want it to run on S, let them figure it out.

Jin_Sakai4h ago

“During the event, the Kingdom Come Deliverance 2 producer also revealed that on PlayStation 5 and Xbox Series X, the game will run at 4K resolution and 30 frames per second“

Another “creative decision” right? 🤦‍♂️

IHateNate4h ago

Amateur hour. Very incapable developer.

Outside_ofthe_Box3h ago(Edited 3h ago)

Since you're not an amateur and clearly know more than them, can you over there and help get the game running on the S without having to sacrifice their true vision. Us gamers would really appreciate you using your wisdom for good 🙏

IHateNate3h ago

Thousands of games run just fine on S.

But Kingdom Come is the game that can’t. Must be one hell of a game!

franwex2h ago(Edited 2h ago)

Thousands of games run on PS4 and on Switch. If developers want them to run on those systems. Fine. Those two platforms still get new games. Sony isn’t making studios also make a ps4 pro version, or Nintendo a wiiu version. Microsoft technically is.

IHateNate1h ago(Edited 1h ago)

If games like Alan Wake 2, GTA6, COD, hellblade all run on S, no excuse for this 100x smaller and 100x worse looking game to be held back.

outsider162414m ago(Edited 14m ago)

"Thousands of games run just fine on S.

But Kingdom Come is the game that can’t. Must be one hell of a game!"

Kingdom come 2 runs just fine alright. Its the SCOPE that they want. They had to cut it because of the stupid S series. Hellblade2 ran just fine too..but im pretty confident if it was just the X in mind, the scope of the game would have been much bigger.

Show all comments (19)
100°

Celebrate the Diablo Anniversary with March of the Goblins

Come celebrate the 1-year anniversary of Diablo IV and the 2-year anniversary of Diablo Immortal! There are heaps of rewards to mark these celebrations with a bounty of devilish goods across both games.

Read Full Story >>
terminalgamer.com
anast11h ago

This game is about to get buried by Path 2.

LordoftheCritics10h ago

Still no global chat or group finder.

The emptiest MP game ever made.

OtterX10h ago

1 more month then I can celebrate 1 year since i stopped playing and uninstalled the game.

Walalon8h ago

We are on the same team brother!

Rynxie5h ago

I uninstalled d4 after they kept screwing over the sorc build and I beat the game. I also uninstalled immortal after reading the end. I actually went back to d2r here and there.

70°

Tales of the Shire Stands at a Fork in the Road Regarding Magic

Tales of the Shire has many hurdles to jump to live up to the J.R.R. Tolkien masterpiece, and magical elements might be its most pertinent one.

Read Full Story >>
gamerant.com