470°

Media report: Microsoft CEO planned to close the Xbox business in 2021

A new report sheds light on a landmark decision by Microsoft CEO Satya Nadella in 2021: Should the Xbox business be strengthened by multi-billion dollar acquisitions or discontinued altogether?

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dveio132d ago

It's been relatively simple math all along. Wasn't it.

The decided takeovers of Zenimax and Activision Blizzard King were, exactly like many others could easily conclude by looking at history, the final act in terms of whether to finally give up 20 years of hundreds of billions of dollars in investments and only minimal, if not negative return and withdraw.

Or whether they, or rather Microsoft/Nadella as the parent company, whether Microsoft would now raise the same amount of money again to save the Xbox brand.

It's been reported that Phil Spencer contributed to the latter choice.

And for all what had surfaced throughout the FTC trial, we today know that Spencer's & Booty's initial plans also saw the buyouts of Sega, Warner Bros. Interactive (which was in fact denied by Warner themselves), Capcom and even Valve and Nintendo.

And an additional 3bn figure in 2020 to bolster GP with 3rd party content exclusively.

And even today, whenever this discussion happens, Playstation's buyouts of Psygnosis or Insomniac are still thrown into the mix. Which, with all due respect, don't come even close to what Xbox has been executing and planned to execute.

The rest is history. At least for now.

Cacabunga131d ago

At least it wouldn’t be as embarrassing as now because they are just trying to survive despite all the cash they have.

Sgt_Slaughter131d ago

The fact that they keep trying to acquire Nintendo is hysterical. This is the same company that thought simply because they bought Rare that they owned Donkey Kong's IP.

italiangamer132d ago

The acquisitions of Zenimax and Activision ironically put the final nail in the coffin for xbox, too much money spent and now they have to port all their games on Sony and Nintendo systems, killing their brand.
Sony and Nintendo had to do absolutely nothing 🤑.

Firebird360131d ago

Yea but they're still bigger than ps and nintendo combined. Ms is basically like the housing or banking market. "Too big to fail". Xbox isn't going anywhere. I'm not an xbox fan anymore but I really think they're poised to come out on top next gen.

crazyCoconuts131d ago

To turn the ship around on the console market, they would have had to double down on the exclusives, not abandon them. They're signaling a retreat.

northpaws131d ago

Bigger how? Because of same argument that MS is a 3 trillion company? They didn't get to 3 trillion by donating money to underperforming departments. I am sure if they can choose again, they would keep the 70 billions and put them in AI then buying COD.

goken131d ago

“Poised to come out on top next gen”?

How could xbox come out on top if they’re releasing everything on other platforms?

Lightning77131d ago

Come out on top? In what please elaborate? How did you come to that conclusion?

+ Show (1) more replyLast reply 131d ago
KaoticBrock131d ago

Sony and Nintendo had to do absolutely nothing? lol
Do you realize how many gamers they are gaining by offering CoD on their subscription? How many gamers they are going to gain when a new Elder Scrolls game comes out and they offer it on the sub as well. Not to mention if they ever decide to move WoW to it. Soon they will be able to say you can pay $70 a game with the other guys or come play them all for a subscription here. It's actually smart to put those games on the other brands because they can market their console as the better place to play them.

S2Killinit131d ago (Edited 131d ago )

They didnt gain much when they put COD on subscription service. They lost that month by an even larger margin than ever before. 3.35 million gap in one month was a record.

132d ago
132d ago Replies(1)
MrDead132d ago (Edited 132d ago )

It would have been a far, far heathier industry if MS had left.

If MS had sold Xbox to a company that cared about growing the industry instead of buying it to benefit the few we would have had more competition, more innovation and thousands of workers would still be working.

MS is a homogenised consolidating force that sterilises all creativity in search of endless profits to benefit the few... and now monopoly laws are going to be relaxed under Trump things are going to get a lot worse.

dveio132d ago

"MS is a homogenised consolidating force that sterilises all creativity in search of endless profits"

I really think you've put that beautifully.

Michiel1989131d ago

right....sony already going in a bad direction and with absolutely 0 competition it would have been even worse and nintendo just being an awful company as usual.

crazyCoconuts131d ago

While I agree with many of your points, I bet the competition and innovation from the OG Xbox and Xbox 360 drove Sony to get their act together with PS4, especially around the online features and system OS capabilities...

Lightning77131d ago (Edited 131d ago )

"It would have been a far, far heathier industry if MS had left."

Yeah no it wouldn't. Unless you want Sony to raise prices on everything with out nobody to challenge them. A high priced console, games, services and accessories. Sounds like the life...... /s

More competition? Like who Google? Amazon? who?

Greedy conglomerates are always a little less greedy when they have each other around.

As I keep saying their games are gonna be everywhere anywhere. What's the complaint?

The only thing I agree with what you said was.

"endless profits to benefit the few..."

That's 100% agree with there.

MrDead131d ago

"Yeah no it wouldn't. Unless you want Sony to raise prices on everything with out nobody to challenge them. A high priced console, games, services and accessories. Sounds like the life...... /s"

You seem to be forgetting other platforms exist other than Xbox.

"More competition? Like who Google? Amazon? who?"

You seem to be forgetting other companies exsit.

"Greedy conglomerates are always a little less greedy when they have each other around."

Well that comment fell flat after MS spent $80 billion

"As I keep saying their games are gonna be everywhere anywhere. What's the complaint?"

So the thousands fired mean nothing to you, nice attitude.

Lightning77131d ago

"You seem to be forgetting other platforms exist other than Xbox."

Nintendo? They don't compete the way Sony and MS do. Plus their games rarely even get discounted they would get worse also.

"Well that comment fell flat after MS spent $80 billion"

80 billion worth worth of assets and IP that's still multiplat.

"So the thousands fired mean nothing to you, nice attitude."

I'm sorry what? What does their games being everywhere have to do with being fine with everyone getting fired? I blast MS each year they do it for one, regardless what does that have to do with anything?

+ Show (2) more repliesLast reply 131d ago
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200°

FTC drops case against Microsoft’s Activision Blizzard deal

The FTC has officially dropped its case against Microsoft’s acquisition of Activision Blizzard.

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theverge.com
slate914d ago

The sweet smell of tax dollars burning

Killa784d ago

From the unemployment this deal caused, no doubt.

Obscure_Observer3d ago

"The sweet smell of tax dollars burning"

They never stood a chance. It was a lost cause from the start. And yet, still, they´d decided to go ahead and double down on their bs to bleed the taxpayer even more.

dveio3d ago

The IRS demands 29bn USD in not paid taxes from Microsoft.

If we're talking bleeding.

1Victor3d ago (Edited 3d ago )

@slate: “ The sweet smell of tax dollars burning “

The smell of political donations endorsements under the table.
There I fixed it it for you
We all knew Microsoft plan of “10 years of all systems publishing “ and some of its supporters happy that after all the games would be “exclusive to Xbox “ now that things have changed and Microsoft got humbled by the lost of money from CoD going down from OVER A BILLI🤑N to
MILLI😩NS the sales failing of games that would released on PlayStation and be forced by INVESTORS asking for their M🤑NEY to grow faster than the next 10 years it is obvious that it would be a waste of money to continue this litigation.
Edit:@obscured: “ They never stood a chance. It was a lost cause from the start “

Same as your grievance stages.
Have you passed the bargaining stage yet ? Or are you still on the anger stage 🤣

slate913d ago

I knew my singe bipartisan sentence would bring out the crazies. Thanks for the wall

Astrokis3d ago

Not sure if I’m disturbed or entertained but either way I hope you are alright

OtterX4d ago

I think they're convinced now that MS won't (and can't) withhold releases from conpeting platforms. MS on the street corner now like, "Who wants a taste?!"

PhillyDonJawn4d ago

I wont be too sure of that. Gotta wait and see till after these deals expire

OtterX4d ago

That's how it always starts, "I'll just work this street corner for a short while until I get caught up on my bills..."

Tacoboto4d ago

Oh yeah, they're totally gonna make Xbox exclusives again, with the hardware they're totally committed to selling and making available lol

raWfodog4d ago

As far as I'm aware, the only 'deal' that was discussed was for Call of Duty. Xbox had no obligation to make any of their other games multiplatform. They did that of their own accord.

OtterX3d ago (Edited 3d ago )

**btw, I'm talking about street food vendors, just in case there's any confusion!

https://external-content.du...

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Lightning774d ago (Edited 4d ago )

I've seen videos and talk a online speculating MS long game. Some think that MS multiplat move is use to appease the FTC so they can buy more and is somehow a move that could get Sony to open up their platform. In other words them going third party and letting their games go everywhere. MS possible scheme and ulterior motives, speculated by Jeff Grubb is that putting Xbox store on PS via regulation Which would hurt PS buissness very badly because that 30% cut would be even less or not a cut at all. MS buys more because they're "playing nice" by opening up its platform to Epic store and steam which would force Apple and Sony to open up their ecosystem to other stores like MS.

If that's the case that'll mean as I said before, PS fans buying Cod on PS via MS store would give 100% maybe even 90% of the money being pocketed by MS while Sony's store front wanes when it comes to third party because guess what? MS is buying more third party and preying off the extreme ignorance of the FTC. Manipulation of the FTC and MS overtaking the PS store and customers

My thing is this. I know it's a opinion and speculation but why does Sony have to open up its store or force them to go multiplat? If they still believe in selling their freakin console then let them do it. If they want to provide the best games and the best content for its fans then let them do it!? Why because the competition is trash at selling games and consoles for 14 years now Sony has to change? MS using the ignorance of the FTC to overtake gaming as we know it?

Again it's just talk and opinion but man this seems very, very possible imo.

dveio4d ago

Well, at the time, I actually did think the FTC and CMA did a poor job in court. But also the judge.

Having said that - it is what it is.

If 75bn mergers in any industry ain't a threshold to deny them, then I don't know what is.

As far as your thoughts about other 3rd parties getting taken over in the future go:

I think publisher buyouts are off the list now. I think it would be reeeeally difficult for MS to win another trial try taking over any other publisher.

But smaller studios ... maybe.

However, right now I can't see studios out there advocating for a buyout from Microsoft.

That isn't to say an announcement of such couldn't drop on Monday already. Because we today know that Microsoft had approached a plethora of other studios in 2018 to 2021, such as IOI, CD Project, etc.

We'll see. And we can't do anything about it. It's up to trade commissions and then probably courts to decide.

Lightning774d ago (Edited 4d ago )

"I think publisher buyouts are off the list now. I think it would be reeeeally difficult for MS to win another trial try taking over any other publisher."

That's the thing MS is ticking all the boxes by not have anything be exclusive so the CMA/FTC see that they're doing "fair practice" in games and content distribution. Which technically greenlits more aquisions or it makes it easier for acquisitions because MS is a mega publisher now.

"However, right now I can't see studios out there advocating for a buyout from Microsoft."

Hopefully not but them going multiplat could entice Studios to join MS because nothing is not longer exclusive which means more money for them, studio and teams.

We can't do nothing about it but Sony can. They can block xbox games on their console (lose that 30% cut) but Sony won't do that because that's money that will be lost and Sony runs a buissness. That's the only way to hurt or slow down Xbox.

I'm probably over thinking it as I do these things but it's something we shouldn't just ignore and be weary of MS motives here. I'm keeping an eye on them.

Rancegamerx3d ago

The idea that Microsoft is manipulating the FTC and forcing Sony to open its platform is silly and has no evidence to back it up. Microsoft’s multiplatform approach is 100% due to past failures and its laughable position in the gaming industry. Their best attempt was a fluke and a lie, brought on by Sony’s missteps and a poorly made machine that broke down too often.

Sony would never allow themselves to be "forced" to do anything; they control their platform and storefront perfectly fine without the need or desire to add an unnecessary Microsoft storefront. Even if, by some flaw on Sony’s part, Microsoft were able to introduce its store on PlayStation, Sony would adapt rather than collapse. Digital storefront competition already exists (Steam, Epic Games Store, Xbox Store), and PlayStation’s business won’t suddenly "wane."

Also, regulators like the FTC don’t operate on ignorance—they actively assess market behavior to prevent monopolies. Microsoft isn’t secretly overtaking gaming with some ultimate scheme. The industry might be changing or shifting (for the worse, in my opinion), but Sony will continue evolving based on market trends, not because of alleged schemes.

Gaming isn’t about one company "playing nice" or another being "forced" to change—it’s about making money with games, something Microsoft has yet to achieve in 25+ years.

Lightning773d ago

"The idea that Microsoft is manipulating the FTC and forcing Sony to open its platform is silly and has no evidence to back it up."

That's why I said it was all speculation that's what Jeff Grubb opinion. I made that clear several times. You know what's funny? When Jim was in court ppl got mad at the FTC for protecting Jim Ryan instead of the consumer. Maybe he was right to worry about his business. Now look Releasing Xbox games on PS keeps MS studio an a float. Now Xbox games are all over PS now. Maybe Jim was onto something.

MS is still competing with Sony just in a very different way. The FTC back down mainly means they can buy more and MS next steps can proceed. We'll have to see what happens in the future but I wouldn't be so sure on your stance.

InUrFoxHole3d ago

@Lightning77
MS putting games everywhere is the most consumer friendly thing I've seen a game company do.

dveio3d ago

@InUrFox

What does "putting everywhere" actually mean?

This book has so many pages.

• Xbox was dying in revenue
• Regulators put a 10 year deal on CoD
• Microsoft had to give away the streaming
• Spencer himself only offered 3 yrs initially

And most importantly

• Again, Xbox was dying in revenue

Xbox have the benefit of their actual financial situation giving regulators and courts the impression they release games everywhere, what they actually do.

But for reasons they can't be proven guilty of anything in court.

I'm not judging, it's just what it is.

IF the Series generation would have developed differently and was much more successful, I don't hesitate any second to believe in what Spencer had originally planned to do:

• Make everything Xbox exclusive
• We today know that Spencer had also approached Sega, From Software, CD Project, Nintendo, and even Valve was on their list of buyouts.

MS are playing a card here everyone knows why they are doing it.

Putting Doom "everywhere", which even was it already before it got bought, ain't a MS thing.

It would had hurt them in many ways if they'd put it exclusively to Xbox.

But, no matter what - it is what it is.

Xbox bought themselves back into the game. And I think many people just don't have very fond feelings towards this behaviour, wether on corporate nor private levels.

Let's see how they'll run with it.

In 2030, but most importantly after regulations will have expired we will learn better.

Reaper22_3d ago (Edited 3d ago )

Seemed like a lost cause anyway. Microsoft gambled and it paid off big time. That's what you call a big boss move. Sony played a huge part in the success of that acquisition.

wesnytsfs3d ago

Bout time. Pointless from the start.

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330°

"Everything Happening To Bungie Is Because of Greed" -ex-employees

Ex- employees Hope Studio Gets "Consolidated Into Sony"

Former Bungie employees speak out in a new report, blaming greed and leadership for the studio’s troubles, and say full Sony consolidation is the best way forward.

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thegamepost.com
dveio5d ago

Interesting article, even with some actual names of the people voicing their thoughts.

I think that we've had enough similiar situations at other studios and publishers already, hell even completely different businesses, to know that OF COURSE it's always about hostile environments at work and the search for rather effortless profits than causing excitment with great ideas.

All deflecting statements, wether from managements or other people in charge, have always, literally always been untruthful. Always.

And it's so silly.

Nothing of this crap causes a nuclear war.

But all the people in charge act like everything is top secret f'n CIA like intel, trying everything to not stand up for their mistakes.

I mean it's pathetic, it really is. In the brand scheme of it all it's truly pathetic.

robtion4d ago

Let me just fix this:

'Everything Bad Happening in 'The world' Is Because of Greed'

Bravo captain obvious.

Obscure_Observer5d ago

All of sudden consolidation is now a good thing.

Eonjay5d ago

Right I actually agree with you here. Something doesnt' seem right almost like Sony wants them to look bad because it is trying to takeover. I can't figure out Sony's intentions here but they are already wholely owned so full consolidation means that they can bring in their own management. And honestly this is probably NOT what Bungie wanted.

Obscure_Observer4d ago

"Well the obvious answer to that is that it kinda looks like Bungie is getting torn to shreds without Sony's help. And clearly there is no way Sony is going to spend all that money and not step in to help steady the ship at Bungie because that would be a huge wasted investment."

Exactly!

Phil allowed Pete Hines to run the show at Bethesda and we got Redfall as result. Now that he´s gone and Bethesda reports directly to Matt Booty at XGS, things are definitely getting better!

It´s past time to Sony to take over Bungie and fire that POS Pete Parsons.

-Foxtrot4d ago

Sony has literally given these guys chance after chance, they gave them an extra BILLION to try and keep talent along with telling them to sort their s**t out

What else can they do here? They gave them free reign, extra money and they've spat in their faces.

If they took full control when they bought them they might have been able to salvage them.

TheColbertinator5d ago (Edited 5d ago )

Bungie will be torn to shreds with Sony in full control. Another addition to the cemetery like Zipper or Sony Liverpool

Eonjay5d ago

Well the obvious answer to that is that it kinda looks like Bungie is getting torn to shreds without Sony's help. And clearly there is no way Sony is going to spend all that money and not step in to help steady the ship at Bungie because that would be a huge wasted investment.

MrBeatdown4d ago

Whatever mental gymnastics you just went through must be exhausting.

It sounds like you have some baggage from Microsoft's acquisition spree.

SimpleDad4d ago

Bungie was indie, so they depended on in game monetization. Sony makes money from other sources: music, movies, psn, ps hardware...

...so devs are hoping by full Sony consolidation they will cut down the monetization part, and make things easier for them...

...but keep in mind, Sony bought them because of their monetization and live service model and design, so much so they tried to make every Sony IP into a live service spinoff.

So I don't see much change in anything, for us consumers, if Sony takes full control.

Michiel19894d ago

i don't think you know what the word Indie means. Bungie has be under the hood of MS for a long time and basically were under the actiblizz hood while they were making Destiny. They are one of the biggest AAA studios, the polar opposite of indie. Technically they weren't owned, but they made deals with Acti like they were. Indie refers to smaller independent studios and don't need in game monetization at all to work. Hades for example has 0 ingame purchase options yet made a lot of money.

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110°

Xbox May Update: Retro Classics Come to Xbox Game Pass, PC Gaming Updates, and More

A variety of new updates are available this month across the gaming platforms. Coming today, Retro Classics games are available to play for Xbox Game Pass members. Players who stream on the Xbox app on PC now have an additional streaming option with GeForce Now. Game Bar introduces quick settings, visual updates for Widgets in Compact Mode, and coming soon, Microsoft Edge Game Assist, an in-game browser that brings an immersive game-centric experience to Edge. And Xbox gift cards can now be redeemed for any amount via Xbox Rewards.

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news.xbox.com
darthv726d ago

While i appreciate the gesture.... all of these retro classics have been made available everywhere else. I am hoping to see some other Activision properties make their way out of the shackles of the 5th, 6th and 7th gen. Licensing be damned... bring back the Transformers Cybertron games.

P_Bomb5d ago

Love the Cybertron games! TF games have been shit lately. Would love to see that era revisited. I even did the multiplayer!

MrBaskerville5d ago

Is the retro classics for all consoles?

Obscure_Observer5d ago

Metaphor on Gamepass just announced! O.o

Seriously, this is the best generation of Xbox ever!!!

We can´t catch a freaking break from awesome games arriving all the time!!!

Deathdeliverer5d ago

It’s a HELL of a game. If you like JRPGs in the family of Persona, you will be in heaven… that is until you hear the various battle music…. then you’ll be somewhere BEYOND heaven!

babadivad4d ago

Just finished Clair Obscur. This should be fun.