470°

Report Claims Xbox Is Planning More Cuts Following Studio Closures

"The sudden closure of several video-game studios at Microsoft Corp.’s Xbox division was the result of a widespread cost-cutting initiative that still isn’t finished.

This week, Xbox began offering voluntary severance agreements to producers, quality assurance testers and other staff at ZeniMax, which it purchased in 2020 for $7.5 billion, according to people familiar with the company’s plans. Others across the Xbox organization have been told that more cuts are on the way.

Speaking about the closures more broadly, Booty said that the company’s studios had been spread too thin — like “peanut butter on bread” — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said.

Game Pass has not seen the massive growth that Xbox boss Phil Spencer may have been hoping for."

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purexbox.com
just_looken15d ago

Sense it seems very few remember that human's were around before 2020 the next studio to close will be bethesda based no doubt on the history of.

Fallout 76
Elder scrolls online
elder scrolls blades mobile
fallout mobile
The vr versions of old games

Then you got starfield pissing out cash nothing to cover it.

I doubt tod's team or any sub team is making m$ cash they are no doubt on the chopping block for job cuts

If you can remember before 2020 even fallout 76 was made with over 4 studios.

purple10114d ago (Edited 14d ago )

pretty sure starfield coming to playstation 2024, nx gamer deep diving on the creation engine update in a recent blog, he seems to think, there is a lot of stuff developed to use on starfield for its Playstation release,

who will buy it though, ?? I think M$ has lost all good will now, after the Activision debacle, and now all these studios closing, people dont want to support them even if the game is half decent

Abear2114d ago

Bethesda is the only studio to release anything noteworthy on Xbox. Take Bethesda out and they have nothing this Gen. Hifi Rush and Starfield are probably their two biggest hits.

Cacabunga14d ago

They are counting on bethesda and activision on consoles and PC.
I really hope there would be a massive boycott movement against just the next release. I’m sure they will reconsider.

They see employees as trash, i will never give them a dime.

Eonjay14d ago

Someone said that cost $350 million to make Starfield. The use cost of making games has gotten crazy. With MS putting everything on GP it makes it harder to recoup costs. This is why I assumed that everything is coming to PC and PlayStation. I think they will have a whole slew of titles ready for the Switch 2 launch.

+ Show (2) more repliesLast reply 14d ago
-Foxtrot15d ago

"Speaking about the closures more broadly, Booty said that the company’s studios had been spread too thin — like “peanut butter on bread” — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said"

So what you're saying is...you bought all these studios and you guys can't run them.

Jesus.

Inverno15d ago

Spread thin after firing over 2000 employees a few months prior. So basically they created the problem and their solution was to just fire more people. Absolute geniuses over at Xbox, of course can we even believe this to be the reason for the closures?

FinalFantasyFanatic14d ago

I was just thinking this, they just fired all those people and now stated they are spreading their staff thinly, this just reeks of incompetence.

just_looken15d ago ShowReplies(2)
Profchaos15d ago

Leaders can't run them hire more management create new roles don't shutter entire studios cause you can't figure out how to run them.

Unless the reality is this whole consolidation thing was really an excuse for IP harvesting

anast14d ago

He's lying. They are doing it for the shareholders.

15d ago
kayoss14d ago (Edited 14d ago )

The crazy part is that if Xbox goes under, all these great studios will also go under. They've bought up all these studios and instead of letting the studio manage themselves, they fire 2000 across and now they're complaining that they're understaff. Sounds like xbox bit off more than chew. Just like all the promises that they've made but cant keep.

JEECE14d ago (Edited 14d ago )

Well, what do you mean by "if Xbox goes under"? Because MS itself isn't going under. So if they decided Xbox was no longer worth it, it's not like they would just eat all those losses. Sure, for individual developers where there are substantial costs in terms of the people working at the studio and minimal money to be made selling related IP (i.e. Arkane Austin probably costs a lot in resources but MS couldn't have made much selling the studio because Redfall is worthless and they probably want to keep the Prey IP), they may just close them, but if they were getting out of gaming completely, they could sell the IP and related studios elsewhere. Like we may mock Bethesda Games Studios on here, but their biggest IP (Elder Scrolls and Fallout) are very valuable. Similarly, I know Halo has seen much better days, but you are kidding yourself if you don't think that IP is worth a lot.

+ Show (3) more repliesLast reply 14d ago
Eonjay15d ago

Reports are suggesting that Game Pass will be getting a price hike soon and that Call of Duty may not be added to the day one offering. I honestly have a hard time believing this but it does beg the question why exactly did GP fail? I think the answer is that it just didn't get the growth that it anticipated. Jim was right but I wish he wasn't because at the end of the day, its gamers, devs and other front-line workers who have to absorb the blow for Spencer and team's miscalculations.

15d ago
NotoriousWhiz15d ago

And out of the ashes something even better than Xbox will be born.

Eonjay15d ago

Honestly as long as is not a situation where the industry has to contract in order focus wealth on a few people who are already trillionaires..

Barlos15d ago (Edited 15d ago )

It's already here and it was born before Xbox was even a thing. It's called PlayStation.

Tacoboto15d ago

I think 2022 killed the Series X.

2021 was a good year for Xbox though and maybe the best in a long long time, hardware and software and as a publisher. Halo Infinite launched to popularity, Forza Horizon 5 blew everyone away, Psychonauts 2 was so well received, Flight Simulator on console, Deathloop even on PS5 & PC.

But they followed that up with next to nothing. Then 2023 with Redfall, a disappointing Forza, Starfield, and 2024 leads with closures and layoffs. And some tweets reminding us Hellblade is days away.

The only disappointment with the PS5 is not enough Sony games. Xbox followed up no games with disappointing ones.

Einhander197214d ago

PlayStations history has been built around third and second party publishing. The vast majority of games that people recognize as PlayStation games were made like this.

Insomniac only because a PlayStation Owned studio a few years ago in response to Microsoft buying up studios, every game they made prior to that for PlayStation was as a third party making a games published by Sony.

PlayStation has had an incredible year using that business model.

We got Granblue Fantasy: Relink, Final Fantasy VII Rebirth, Helldiver 2, Rise of the Ronin, Stellar Blade, and Silent Hill is right around the corner.

Eonjay14d ago

I think Xbox S. Brand was already dying for some time. Your 2022 point is interesting but also remember that is a year after the lock down which hD created false demand.

Einhander197214d ago

"I honestly have a hard time believing this but it does beg the question why exactly did GP fail? I think the answer is that it just didn't get the growth that it anticipated."

What?!?

Game Pass failed because from day one it was maintained by subsidization. Game Pass was never profitable, I mean, sure you can say that was because it didn't get the growth they predicted, but their predictions of it having "billions" of subscribers were completely ridiculous, to the point where saying that it didn't have fast enough growth is as completely out of touch with reality as their predictions.

Eonjay14d ago

To clarify, what I am saying is that there is a scenario where GP would have worked and thats where they had a lot more subscribers. You see MS isn't dumb and they charted out how many subs they would need to make the system work. That's why Spencer testified that they would need 80 million subs by 2027 (which is crazy now in retrospect). Now we also understand why Satya Nadella's bonus a few years back was based on that unrealistically high Growth in GP subs. From the beginning they knew that the only way to make it work was with a large base of subs. This is because as you said simply subsidizing won't work forever.

Einhander197214d ago

"To clarify, what I am saying is that there is a scenario where GP would have worked and thats where they had a lot more subscribers."

Yea... but again they expected/wanted an obviously unobtainable number of subscribers. Do you think that taking the risk was a good idea if it was based on getting billions (even 80m) of users?

"You see MS isn't dumb"

Are you sure? Have you been reading the news?

"That's why Spencer testified that they would need 80 million subs by 2027"

This was a refined estimate for the courts, and probably more truthful maybe... but go back and look at the first few years of game pass Microsoft actually said they were going to reach billions of people. Yes that was marketing, but still what they presented to the public to sell the idea.

I actually don't want to argue with you, normally I find your comments agreeable, but this one just came off a little off base to me.

Tacoboto14d ago

"Game Pass failed because from day one it was maintained by subsidization"

I do agree with Eonjay here - *if* Microsoft got the subs they want, Game Pass could have worked. Microsoft assumed people would buy into a subscription service like they already do for TV and Movies and Music.

But that didn't work out, at all, with the catastrophic consequences that we're seeing today.

"Microsoft actually said they were going to reach billions of people"

Reach != Subscriber count. That's your own conflation. Reaching just means "being available in" and usable in, billions of people with the awareness and ability to access the service. There exists no quote saying they estimate "billions" of subscribers.

Eonjay14d ago (Edited 14d ago )

No worries. I consider it more of a conversation than an argument. I learn alot from people who don't agree with me. Bring it on lol!
And yeah I forgot about the whole 'reach billions' PR from MS. I think theybare a victim of their own BS. I think at these companies you do have people push back on pipe dreams from the management.
I mean clearly it wasn't a good idea lol.

+ Show (1) more replyLast reply 14d ago
FinalFantasyFanatic14d ago

Maybe they need to put less games on there or just simply charge more from the beginning, I think they guttered their bottom line, they didn't make as much as they could have from selling games.

kayoss14d ago (Edited 14d ago )

GP fail because these studios poured in $100 of millions to makes these games only for it to given out free in GP. Even if Microsoft pay them to put in on GP, they are not making some of the profits they can potentially make. Especially not for AAA games. For studios making lower quality games, this may work but not for AAA. Look at Sony, their AAA games are award winners. Look at god of war ragnarok, they sold 5 million copies to date and needed to sell 3 million copies to break even. Thats a tough market to be in when your AAA game is not guarantee to break even let alone trying to make a sizeable profit.

JEECE14d ago

Ragnarok sold 15 million as of last November.
https://blog.playstation.co...

kayoss13d ago

Sorry, i missed the 1 when typing 15. But the point i was making is that not all AAA games are guarantee to be a success.

+ Show (3) more repliesLast reply 13d ago
Scissorman15d ago

For all the armchair executives who were calling for Sony to release its big-budget AAA games on PS+, the same exact thing would have happened at PlayStation. Game Pass has killed Xbox. Congrats.

shinoff218315d ago

There's not many of of us clamoring for Sony to do this because most of us understand it would kill Playstation. I'm sure there's a few but I've not seen alot of it myself.

porkChop14d ago

"the same exact thing would have happened at PlayStation"

But the same thing *has* been happening at PS. They've closed, what, 3 or 4 studios so far this gen? Laid off plenty of staff, restructured studios, etc.

BehindTheRows14d ago (Edited 14d ago )

PlayStation isn’t struggling. Xbox is. That’s the difference.

Sony also didn’t buy out multiple publishers with LOTS of studios and leave them in a state of uncertainty.

So, he’s absolutely right that Sony not following Game Pass in its entirety was smart as this very thing could have happened. Name a team, like Tango, who wasn’t struggling (like Tango) that Sony closed. Every closure was because of a studio who wasn’t pulling their weight.

rlow114d ago

You’re right about that. People on here will turn a blind eye and downvote because it’s Sony. Jim Ryan flew to the London studio and spent the day with them. The very next day they were all fired.

Calling out MS and not Sony. No matter how the studios came to be. Won’t make a damn difference to those who lost their jobs. In the end it’s all the same.

FinalFantasyFanatic14d ago (Edited 14d ago )

This is why I have always advocated that Sony should not follow Microsoft's footsteps and adopt their model, Xbox couldn't afford to do it, Playstation certainly can't either.

+ Show (1) more replyLast reply 14d ago
15d ago
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60°

Embracer Group Has Over 70 Projects in the Works

Embracer Group has released its latest financial statements, and while sales are up, some of the group's games haven't performed so well.

Read Full Story >>
techraptor.net
OtterX1h ago

And they'll cancel 50 of them, then lay off their staff within the next couple of years. I think Embracer's new logo should be a Boa Constrictor.

Stonilein53m ago

i hope we get the next Tomb Raider soon

360°

Ubisoft say AC Shadows protagonists will be "romantically attracted to different types of people"

Ubisoft recently shared more details about Assassin's Creed Shadows protagonists, confirming that both of them will romantically attract and be attracted to different types of people.

Hugodastrevas1d 3h ago

That should please everyone I'm sure...

RpgSama12h ago(Edited 12h ago)

Feudal Japan DEI LGBTQ+ Samurai, sounds very accurate for the time period. Surely a decision made only with historical accuracy in mind.

Crows9012h ago

Or even modern day accuracy.....

Lexreborn212h ago

You have no idea what you are talking about, bet you didn’t know nobunaga was bi-sexual. Or ran maru his is often depicted as androgynous was a “beautiful boy”.

So yeah, feudal Japan had tons of lgbtq and kawaii enough… A BLACK SAMURAI! All without the need of offending a Caucasian because the world is diverse.

VenomUK10h ago(Edited 10h ago)

This story has cracked me up so much! Bravo Ubisoft, bravo! 🤣. So last week everyone was upset that in the long-awaited first Assassin’s Creed: Japan game the protagonist is black. But NOW he is also LGBTQ+ ! It’s like the Ubisoft creative team sat around a table and said “How can we best impress our Kotaku/IGN/Polygon friends and antagonise gamers? Let’s make it woke x 100!’ And then they all silent clapped!

Just you wait until the Star Wars: Outlaws details come out, there better not be anybody complaining about Kay Vess’ dating preferences and the gay droid armies.

Christopher10h ago

It actually is.

Japanese were very Greek in their sexual experiences.

lodossrage10h ago

Lexreborn2 is right

Go read up on Japan's feudal era homosexuality and bisexuality was a very common thing in that time.

I just have to laugh because the same people complaining about this are the same ones crying about wanting "historical accuracy". When it's clear most of the whiners don't even know history themselves.

Christopher9h ago(Edited 9h ago)

Facts don't care about downvotes, btw. You either claim to understand historical accuracy or you just admit you don't like the stuff people did throughout history.

https://en.wikipedia.org/wi...

thorstein6h ago

Japan had no Christian stupidity about sexuality.

That's where your nonsensical puritanical view comes from: the Abraham's faiths.

It's feudal Japan, they don't believe in your religion's made up nonsense.

I mean, if you're going to embrace a particular viewpoint, you should at least be aware of where it comes from. Most of the world doesn't care about your ideals.

In those days, they certainly didn't care about your religion.

Get over yourself.

RpgSama4h ago

All of you guys missed the point, I even said I'm very sure they did it ONLY because they wanted to be historically accurate. Stop defending this, we all know why they did it and who they want to pander, it's not out newfound respect for history.

lodossrage4h ago

@RpgSama

Nobody is defending anything.

People are just pointing out the fact that after they just cried about the game not being historically accurate, when they SHOW they're accurate, they cry about it because they don't like certain parts of history

Not to mention you contradicted yourself RPGSama. You just pointed out you said they "ONLY because they wanted to be historically accurate". Then turn around and accuse them of pandering and/or having an agenda. Those two things are opposing statements

Cacabunga2h ago

Dumbest decision ever.. always online was a pass for me but now not even for free I’ll try it..

LordoftheCritics37m ago

It's made by Ubisoft Montreal.

Obviously we'll be allowed to bang anything that moves.

+ Show (9) more repliesLast reply 0m ago
CrimsonWing6912h ago

Geezus, just make a good game… holy sh*t this is becoming insufferable.

Crows9012h ago

Oh yeah!!!! What about being inclusive???

I'm sorry
..please replace the word inclusive with stupid.

notachance8h ago

If they truly aimed for inclusivity they’d make the protagonist an Ainu tribe, this is just Ubisoft getting comfy with Sweet Baby Inc as always.

Hofstaderman11h ago

You asking UbiSoft to make a good game? This is not 2002.

thorstein6h ago

I thought you crybabies wanted "historical accuracy." Now that your going to get it, you're going to cry more.

PRIMORDUS5h ago

It's past the point of retarded, everyone seems forced to do this bullshit now in games. 😑

Barlos28m ago

Hell no. A good game or film is secondary now to the agenda and the 'message'.

It's not enough to be simply entertained these days, there has to be an overarching real world narrative. I mean look at Dr Who as a recent example. Disney have completely destroyed it all in the name of 'diversity'.

+ Show (2) more repliesLast reply 28m ago
Hofstaderman11h ago

I take my hat off to you good sir. Brilliant.

Laskin10h ago

Thanks… I was originally going to write Samu-Bi but then I realized it was right there already so it works better

darthv7212h ago

Is that genuinely a selling point for people?

RpgSama12h ago(Edited 12h ago)

They sure as hell want to see if it is, time and time and time again.

VincentVanBro11h ago

You have to understand they’re incapable of writing a good story so this is the best they could come up with

thorstein6h ago

Well, after last weeks crying about historical accuracy. Now Ubi days, " Oh, okay, historical accuracy: here you go."

Now you're saying you don't want the accuracy? Can you guys just make up your minds?

notachance4h ago

Many entertainment medias do this nowadays because in an effort to boost the so called “EGS score”, investment companies such as Black Rock stipulated contracts that obligated fund recipient to conform to certain inclusivity standards, either by themselves or consulting with agencies like Sweet Baby Inc or Gaymerx.

notatallsurprisinggg3h ago

It's a genuine click-bait snippet to rile up people like you to push traffic.

Barlos24m ago

They can't help themselves. This path leads to failure. Every single time. But there's no stopping this ESG DEI train. If you don't buy it then the developers will say everyone is racist hompohobes. They will never, ever look inwards and admit that hey, we made a mistake, we gave people what we decided they wanted, not what they actually wanted. They'll blame the fans when it fails.

+ Show (5) more repliesLast reply 24m ago
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100°

Unannounced Valve 6v6 Shooter MOBA Footage Leaked

ESTNN writes: "A leak for Valve's 6v6 3rd-person shooter MOBA has supposedly been released ahead of time. And if the reports are true, fans of the genre have much to be excited for."

XiNatsuDragnel1d 20h ago

Deadlock looks like bioshock and Moba had babies

JunonZanon12h ago

Valve really cannot count to 3.

Number1TailzFan10h ago

They should've had a new L4D like 10 years ago, it can be expanded upon a lot more but they just left it collecting dust.. it was a good game for its time but L4D2 doesn't have nearly enough content these days to keep players engaged, and it needs a serious graphics upgrade

mastershredder9h ago

Nice bend at the knee there Gabe. Seriously? A quirky character arena shooter? This late into the me-too-shooter market? I thought you guys were so much better than that crap. Gabe must need a bigger yacht.

kitano19473h ago

clown comment, valve are famous for letting their devs work on whatever they want as they have no share holders to please. hence why we rarely get games from valve but when we do they generally are great.

icefrog, the original modder who created dota on warcraft 3 is working on this with some other members at valve.