Microsoft had been planning to cut its Xbox store cut to just 12 percent, according to confidential documents filed in the Epic Games vs. Apple case. The software maker details its store fees and changes in a document from January, where it also lists the 12 percent cut to PC games it announced this week. While most of the important parts of the document are redacted, one page reveals Microsoft also wanted to reduce its 30 percent store cut on the Xbox console side.
With Arkane Austin no more and Lyon living for who knows how long, the superb Dishonored is in serious danger; Microsoft cannot be trusted.
I love the Dishonored series so much and really want Dishonored 3. Microsoft better not screw this up.
I mean, I think the fans will probably kill Arkane Lyon by cooking up reasons to hate whatever they do next without playing it. I've never seen a game so artificially disliked as Deathloop.
Lol, why don't we just say, we are worried about all studios owned by MS now. They will keep closing studios until they have none left ...🙄
Paul Thurrott in a recent episode commented on the on-going Microsoft fiasco hinting at more job losses and that "there's more to come".
There won't be no more acquiring game publishers from Microsoft in the future . Xbox has to pay Microsoft back. It might take two decades to do that.
I don’t understand what you’re saying. Xbox IS microsoft so there’s no “paying back “.
And MS gross profit in 2023 was over 140 billion dollars so forget your 2 decades.
Unless you mean the money MS invested in Xbox (acquisitions included) and the time it will take for xbox as a brand to gain that money back on it’s own, then yeah, that could take a while.
The better term to use might be return on investment, xbox is simply a division of Microsoft one that MS can easily do away with if profit margins are not met. So in that regard he's right, if xbox isn't showing the expected return on investment the higher ups are expecting than it's unlikely Microsoft will acquire any other studios any time soon, especially if they are spending billions buying developers just to shut them down in the end.
Xbox is a division that they discussed shutting down but doubled down on after Gamepass was pitched.
It needs to make money at some point. Big money.
According to Statista the net income of Microsoft is about $72.4 billion dollars which is a bit lower than last year profit. That is almost as much as Activision's acquisition but I assume that would be a one off since it costs so much plus I see how their focus has been shifted to AI, thus any major future investments will probably be in that area.
@romulus23
That is not why MS buys studios. They might continue to buy because it's about taking that sweet sweet IP out of the corporate husks of their acquisitions.
“There won't be no more acquiring game publishers from Microsoft in the future”
No bro, there do be is for Microsoft not acquiring for what is now if not what it be is 😂
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Let’s be real, this is the media spinning all the acquisitions and liquidations of said developers and spinning it to make M$ the villain.
This was bound to happen, a bigger slice of pie and cut costs, when the games come they stand to make more and that’s their agenda—it was the writing on the wall when the sales went through and legally all those who approved the sale and mergers knew this would happen.
Snowflakes need to realize business is ugly and you can cry all you want but this is how capitalism works. And it works.
That said, M$ needs to steer the narrative and grab hold of all this, make their plans known, hype the hell out of all those dead IP’s they plan to revive, and be honest about the timeline. This is likely to involve mobile and IP on other consoles, and most people realize that.
The problem is this company is incapable of being transparent and seems to often want to dissuade and confuse is customer base. The lack of E3 has hurt Microsoft and I don’t think they know how to properly or effectively market their brand anymore.
There really needs to be a class action lawsuit here. You buy these companies just to put people out of jobs. And it’s not like something happened to derail their plans this WAS the plan. Microsoft has no business in this space at all.
Microsoft has been doing this for years. They simply want the IPs. Look at Nokia. Look at Skype. This time it simply expanded to games. Gaming is not as important to Microsoft’s executives as it was to the founders too. Bill Gates was willing to sell the og Xbox at a loss. Steve Balmer approved the red ring of death fiasco. This CEO isn’t really a gamer.
Maybe it's time though to put a stop to it and use a big giant like Microsoft as a huge example to the rest of these big companies.
There has to be a line drawn somewhere.
People like the FTC and the like went against Microsoft yet their Actvision deal was still allowed to go through yet look what's happened...it's not even Acitivisions studios aswell, it's Bethesdas.
You do realize this happens in ALL industries? Or are you just saying this because it is Microsoft? In any case I feel for those that are being let go but the trch industry is suffering right now.
This absolutely does NOT happen all the time. Let me know the last time 1 company with a terrible product track record spent 100 billion onto acquire MULTIPLE successful companies in under a year only to shut them down and stop making their products regardless of how successful they were. Not merge them, completely shut them down.
And you can’t use Microsoft in your example.
Class action lawsuit? The law is on their side and protects them at all costs. There are no rules to protect the people at the bottom.
Ninja Theory, Perfect Dark, Crash Bandicoot, Spyro, Wolfenstein 3, Dishonored, Prey, Doom, Quake... something tells me that bad things are going to happen to these entities under Microsoft.
ID software, the makers of Doom and Wolfenstein that have been with us since 1991 could be gone and MS will keep the IPs.
I hope some of these studios can buy their freedom from MS otherwise this is going to be even more devastating for the industry and gamers.
That's exactly what I'm worried about. I've been a fan of id since Wolfenstein 3D and I'm honestly afraid.
Toys for Bob saw the writing on the wall and bought themselves out.
Wouldn't be the first time a company did that under MS either. Bungie and Twisted Pixel did the same. Considering what just happened, I can see some other devs trying to buy themselves out too.
Won't make a difference.
The whole structure needs to be overhauled. Anyone that replaces Phil will be no different than him, Mattrick, or anyone else.
Until the company changes how they go about business, nothing will change
I just don't have any idea what they would do , they have done sooo much damage on their xbox brand, they have a show at July or June I think, but will it even matter even they show amazing games, idkn
True,
But they may as well get it over with. Whether it happens now or later, the burning is going to hit the same.
Reality is the ONE move that can alleviate a lot of this is the one move they can't make. Remove day 1 from gamepass.
Microsoft & Xbox have shut down Arkane Austin and Tango Gameworks to lay off more workers, insinuating that they're not in the game anymore.
They're headless for a long time because closing tango isn't exactly a good move
Ever since that cringe Kinect reveal they've never been the same. They used to make some amazing games and do great deals with third parties Early on in the 360 era they had games like Chromehounds and Shadowrun, both well ahead of their time. Now instead of nurturing their studios, they'd rather gaslight gamers and throw billions on pre existing studios. Not sure how Spencer is still in a job, I wouldn't trust him to organise a piss-up in a brewery.
We've said all along Spencer needs to go. I wish xbox went back to xbox only with new gears fable forza halo releases lots of third party releases
Those early rainbow 6 Vegas days and phantasy star universe are gone forever
MS has its head in the game but the game they are playing is something different from what console gamers expect from a platform. MS’s end game has always been to use the xbox as a trojan horse.
“Acquisitions always come with cuts”
343 trillion points shield activated
343 trillion percent damage negate activated
All damage reduced to 1 for 343 trillion turns.
MICROSOFT DEFENSE FORCE IS A GO
Especially for Microsoft, when Booty pretty much said they didn't know how to handle that many studios.
Why even make the acquisition then.
Didn’t they make the swipe for Bethesda when Sony wanted like 6 months exclusiveness for Starfield
It’s like…chill, you got Rise of the Tomb Raider for a year.
Do they always come with senseless cuts becasue that's exactly what cutting Tango was, senseless.
Everyone's acting now that game companies care about games and Xbox is committing the Ultimate betrayal, they are all like this and you have just been quiet about it for far too long
I wonder if Microsoft do pull out of the console market that it might open the door for valve to relaunch the Steambox. Competition is good for the industry but Microsoft don't even seem to be trying anymore.
Steam / Valve are one of the few truly pro-consumer bright spots in gaming right now. Thankfully.
From all the money Valve make from Steam they reinvest almost 0 into creating new AAA titles for the PC platform, Absolutely no giving nothing back in that regard. Wake up.
“Your game has won some pretty significant awards and is a show piece for where we want to go in the future.”
1 hour later.
“We’re gonna have to let you go. You can’t cover our 100 billion dollar acquisition. Oh and take your awards too 👍🏾”
They should do the 12% so it light fire in everyone.
This is probably one of my favorite clickbait headlines of all time. Well done!
I hope Microsoft will reconsider and change the percentage from 30% to 12%.
If Microsoft is to do this you'd see many companies that decide against bringing their games to the Xbox brand and many independent developers flock to bringing their games to Xbox too.
Plus it would allow developers to experiment more with what games they bring out, because with a bigger percentage they don't have to worry as much about if this will be successful for the general public or just with a few.
One last thing if Microsoft would bring the percentage down that they take, it makes it easier for game developers to survive and grow, because unfortunately with how the industry is, with one bad selling game, the game studio's doors can close.
So this would be a great benefit to game studios and gamers alike.
I would make it tier based. Lower the barrier possibly. But, if your game becomes a hit on said platform, the royalty percentage goes up based on sales threshold goals.
If your game doesn't sell, the platform doesn't take much from you. You hit the first goal, royalty goes up a few points. Hit another milestone and another, goes up just a bit more. Developer makes their money, platform makes money as well as it was their platform the game became a hit on.
No matter what, a platform deserves compensation for hosting. If a developer wants 100%, there's always the open platform of PC excluding Epic, Steam, GOG, etc. But then, the developer may not reach the community they strive to make profits on.
When you make money off of someone else, don't expect the deal to be in your favor unless that platform is looking to gain something in return. In this instance, Microsoft would have been looking for more games and good PR on their platform over other platforms on console. Not because they're being "nice." Instead, they decided to continue profiting at current levels on console unless swayed by market changes. But on PC, it's to grow their platform over other PC offerings like Epic and Steam.
How does going from 30% to 30% equate to 'making more money'? Interesting clickbait title.
It should be 12% though, 30% is huge.