After Shutting Down Xbox Studios, Microsoft Faces Trust Issues With Advertisers

Microsoft 's decision to shutter the Xbox Entertainment Studios division, as part of 18,000 layoffs announced on Thursday, has shocked and angered several top ad buyers, causing some to once again question the company’s commitment to advertising.

While Xbox will still offer movies and TV shows, ad buyers saw original content as appealing, partly because much of the video entertainment offered on Xbox isn’t ad supported, instead being offered for sale or rental. As a result, the abandonment of the original content strategy makes top ad buyers feel like the rug has been pulled out from under them.

That could affect confidence in a broader range of Microsoft initiatives, possibly undercutting efforts by CEO Satya Nadella to win over marketers. He has been making direct overtures to advertisers in recent months, hosting frank question and answer sessions during which he openly sought criticism while admitting the company hasn’t always been focused on advertising. More recently, advertisers say they’ve heard a renewed commitment from the groups sales team on Xbox, Bing, and even the often ignored Web portal MSN.

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NextLevel1607d ago

Not surprising. You can't flip flop all over the place and expect people to take you seriously. It's affecting alot of areas surrounding the Xbox.

Testfire1607d ago

True, but as long as the flip flopping is reversing mistakes from Mattrick's shoddy vision to Spencer's better vision for the X1 gamers should be fine with it. I don't get the complaining, every reversal so far I can think of has been for the benefit of the gamer, people should be happy.

ABizzel11607d ago

The reversals shouldn't have been needed in the first place, that's what the problem is for most people (outside of those trolling).

I; however, completely disagree with this one. You invest millions into creating these studios then close them before the project has a chance to do anything worthwhile.

From the get go I knew this was a bad idea, simply because your major competition has been on of the biggest names in the film and TV industry for nearly 30 years, so if it came down to a content battle you have MS with 5 new XBTV series vs. Sony who can drop 5 new TV series as well as 30 years worth of content onto PSN. It was always a losing battle for them in this regard.

What they should have done was keep it quite and work on getting the XBO to replace your cable box, or be a subsidized companion device to your Cable box which would have helped them possibly dominate the US and North America.

The reversals while good for the gamer, are just happening to frequent and almost always at the cost of integrity MS and faith in their product. I know they're trying to fox things, but goodness give these announcements space to breath.

dirkdady1606d ago (Edited 1606d ago )

Company or Xbox division in this case is not run by one person alone but a committee of leaders including spencer. Know for certian that Firing mattrick and promoting spencer is a PR move.

Anyone that's worked in a corporate environment know that the ideas are brought by people like Spencer of course ultimately the buck stopped at Mattrick.
All I'm saying is don't be too quick to let Mattrick fall on the Xbox one "sword" alone.

IVanSpinal1607d ago

'expect fanboys to take seriously......"

Goku7811607d ago

MS has trust issues with everyone.

Magicite1606d ago

Mattrick have done so much shit, it will take years for MS to recover all that, if ever.

+ Show (1) more replyLast reply 1606d ago
XiSasukeUchiha1607d ago

Oh god, the only way MS can redemption themselves is be trustworthy again!

1607d ago
kreate1606d ago

Its most likely auto-correct texts.

BitbyDeath1607d ago (Edited 1607d ago )

Xbox shouldn't have ads in the first place.

n4gamingm1607d ago

Ps4 has ads as well I don't get your point?

BitbyDeath1607d ago

Different ad types.
Buyer ads mean people buy ad space, PS4 does not have that.
The ads on PSN store are links to content on the PS Store. Devs don't pay for those.

Soldierone1607d ago

DVD style trailers/advertisements incoming!

zsquaresoff1607d ago

Fell bad for those publishers who were creating those Kinect games.

Beastforlifenoob1606d ago

I feel sorry for anyone who has a kinect i mean the only thing you could use it for is a di**o but not even a good

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