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Bloomberg: Xbox is planning major layoffs next month, as new CEO Asha Sharma confronts a bleak picture and plans what she calls a "reset"

What a disaster. So what is the play for them now. It sounds like a cost cutting console with some exclusives. This will be doa.
Completely gut Xbox, review the games in development, see where costs can be cut, no doubt Helix will be redesigned and developed to make it sub $1K

Will be loads of other things but 20 billion is wild, how mismanaged this brand has been is mental
 
They messed up so badly over the last decade, and now we're seeing the consequences. Asha taking the lead she now have to clean up alot of things. Also I bet till the end of the year they will shutdown a game studio for sure.
 
Destin is trying really hard to spin this into an industry problem. lol
Isn't it like the whole industry is closing studios and laying off people?
For MS, these issues are more prominent due an internal lack of strategy, vision, and poor decision-making.
 
Just get rid of the DEI-department and everyone who was hired through it.
This is the only benefit from these layoffs. Asha, as an AI Agent is incompatible with wokeness.

Wokeness = more useless people
AI = less but useful people

Yet, MS is a very woke company, so it could end way worse.
 
I'm beginning to believe Helix would have been canceled if they weren't ass deep into development, costs, and obligations already.
They should still do it. That is the correct way.

There is no shame in accepting defeat in a business. Microsoft was once wise shut down Windows phones. They should do the same with the Xbox hardware.

Be a publisher. Make great games and sell those on PlayStation, PC, and Nintendo, and they may have a profitable business.
 
Can you elaborate on this dude? What kind of things went on there?
That was pretty much all he said, and was what led to him choosing to leave. He's not an idiot 🤣, he's a man of few words at the best of times, not one to leak / spill the beans on the companies he works for.
 
That decision was made at least a month or two ago, right? From what it seems, they didn't even tell anybody internally at least. (I'm basing that assumption on Greenberg's comments on Twitter earlier) I'm assuming this means some drastic things have potentially changed in the time since then?
Looool those decisions were likely made last week.

Ignore Greenberg, he's the single biggest bullshitter in the business.
 
I thought Phil Spencer saved Xbox. What happened?
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It's always curious to see a 3 trillion dollar company firing thousands of people, while pretending to be very poor and making difficult decisions.
 
Maybe my memory is failing but didn't the Activision-Blizzard deal mean the were forced to release on ps5/series gen? And then it would be reconsidered? (Like they phrased in a way they weren't obliged to do it?) Maybe this was just the plan, to abandon exclusivity on current gen, lose some money on hardware and then bring it back full throttle for the next gen.
 
3% accountability margin is 3% growth over YOY goal, Phil's was 30% before leaving. This explains why she has a longer leash and can make some moves. That's not a bad thing for Xbox, it buys them some time to get the business back in a positive direction.
What are you talking about? Its measured growth year over year.

I'll make it simple example.

Last year let's say they made $1 Billion this years goal would be $1.03 Billion. It's 3% growth from prior year, not purchased companies or whatever you are comparing to.
MS's Xbox accountability margin isn't a YoY growth in profit measurement and there's no temporal growth factor to it; it's simply a means of gauging profits in relation to cost of generating them, so basically just a profit margin for the division expressed as a percentage of revenue. (profit/revenue) x 100 = accountability margin.

As I said in the other thread and previous posts, Sharma clearly isn't operating under the same duress Spencer was in his final throes. Given that, then there has to be a longer term plan in play - it's not just about balancing the books here and now as it was when Spencer's only way out was to ship on ps5 and Switch and do away with a large part of hardware subsidisation. Satya sees a bigger picture years from now where game creation can be massively AI-powered and Sharmabot and her growing army of industry AI drones are here to do away with as many expensive organics as she can and roll out automation/generation with far less human oversight/interaction/retouch where possible.

Xbox is a division of Microsoft and has been functionally bankrupt for years.
💯
 
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Be a publisher. Make great games and sell those on PlayStation, PC, and Nintendo, and they may have a profitable business.

This is the most natural way, especially since buying ActiBlizz. There is one big problem in this strategy tough, the biggest nemesis of Xbox - Microsoft.

They won't be happy with that in the long run. Probably even in short therm they still will be inpatient because they want more. They want to be numer one and not to share with others. What Spancer said, that there are 1-3 billions of players out there? This is the goal that would make them happy.

If Microsoft would be ok with traditional model of consoles business they would be continuing what Xbox 360 did in first half of it's life. Instead they stoped investing in games (like 2-5 years time exclusives) and focused on Kinect. Then Kinect and TV. Then (but for short time) GaaS. Finally they invested in Game Pass. It is a constant chase for one thing that will make Xbox explode and grab few time more players then competition.

And yet, 25 years later it is almost dead. I really believe that they could have been number one (and I'm not their fan). There is this world that they like to say. Engagement? It would be great if Microsoft would do that for Xbox.
 
Xbox (and other global players) wasn't sustainable with their business and this is the result. Hiring for short-term effects and for the next hype wave only get you so far.

Unless they turn their practices inside out this will always happen in intervals.

Maybe they should be looking at that one big global game company that doesn't lay off hundreds of people every year.
 
Years of bad decisions and so many sub par games wont get turned around in 3 months

I think she is in over her head but will wait and see what ideas she has
See, that's not why you bring in an AI CEO. She's not here to troubleshoot a flailing gaming production operation and make it work as it should have been doing, not here to Make Xbox Great Again.

No, she's here to lay the footings for a future of game production that looks very different to the industry we know today where MS can leverage their IP and what they think they have in a robust AI tech and infrastructure wealth.

The Sharma we see on twitter and being interviewed at Spenceresque levels is a PR machine intended to keep the faith for the last few score million faithful in the short term only.

Number one gaming and entertainment company? Good luck with that. Xbox name is tainted. Might have a chance in US but rest of the world doesn't need that crap.
This xbox perception issue in the wider world is surely lost on her. Everyone that's been leading her through this Dummies Guide to Gaming CEO, teaching her about the business, has largely been NA-based or NA-centric, and there's a big wide world out there that's going to be pretty apathetic to yet another xbox is so back, baby cycle.

When you join an organization as an outsider you can often sniff out the fakers and time-wasters, she probably has a pretty good idea by now who is who among the studio leaderships at least.
Well, she at least won't have a single drop of loyalty to any of them and will happily replace them with those that align with her true intentions for xbox - as we've seen with all the exec-level AI hirings.
 
They are completely stucked in trying to go simultaneously in two opposite and incompatible directions.
They have the infrastructure and baggage of a giant publisher that needs to be completely multiplatform but they're trying to improve an almost dead console business that needs dedication with exclusive features and games to give people a reason to buy the product.
Either they give up on Xbox or they downsize as a publisher.
These half steps won't solve anything.
 
  • Spend 20 Billion on content
  • Income down by 500M
  • Profit margin down from 12% to 3%
I have been convinced that MS's output has been 99% hot garbage but still didn't expect they were doing this bad.

Asha putting these numbers out there probably means the layoffs are goning to be brutal.
 
It actually seems a bit crazy to me to put 2 exclusives out when they are doing so badly. Gears of War: E-Day would do very well on Playstation, but doing this is putting the studio at risk surely? Even if the reason is clear, some execs just see poor numbers.
 
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This pretty much

Most people in this thread what on Xbox for the direction they was taking including exclusives, now they reverse it they go back on their word

The brands been mismanaged for so long, it's shocking to see how bad Phil seems to of left the brand
Phil almost completely killed it, time will tell if it's even fixable
 
The more I read this, the more I'm amazed by Nintendo. Only a 30 euro price increase, announced way ahead of the actual hike, yet component prices have probably become more expensive than that actually covers. Then again, if many sales are from parents for their kiddywinks, you can't ask more than 500 I suppose.
The only thing you should be impressed by is nintenda greediness, because their consoles always selling at profit from the get go, they have a room for maneuver selling cheap overpriced garbage
 
Probably cause they put all their games on Gamepass day one, dev costs don't come cheap.
huh, it's almost as if we knew it all along. makes the following a real head scratcher




journalism eh? if only the purpose of the job was to scrutinise and investigate the facts, rather than acting as a mouth piece.
 
Asha is airing out the laundry, because if she doesn't do it now she would get blamed for it later.

However, where are all the people who used to cheer for Xbox year after year? What about all the awards Phil got being such a good boss? Exactly WHEN did the dumpster fire started?

Because if you ask an Xbox fan, there was NOTHING wrong for the last 20 years! Every year things got better, every year they cheer that they are rich and successful. Xbox was perfect!

And now the one running Xbox is saying the department is a mess. The question is how far BACK was it a mess? And the Xbox people who had been cheering all this time, do they still have any credibility to cheer NOW?

If Xbox fans were wrong to cheer as the Xbox division burned to the ground, how could they even show their face after the fire is put out?
 
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The more I read this, the more I'm amazed by Nintendo. Only a 30 euro price increase, announced way ahead of the actual hike, yet component prices have probably become more expensive than that actually covers. Then again, if many sales are from parents for their kiddywinks, you can't ask more than 500 I suppose.
Microsoft's logistics leverage on a grand scale is miniscule compared with Nintendo or PlayStation.

While I still think the new cycle of "we are so back/it's over" is silly and a bit pathetic, I don't envy Asha because the hardware problem is downright unsolvable and unsalvageable for Xbox at this point.
 
Going to get even worse when they bring back exclusives, shame.

That's a good point. Very weird to complain about the loss of revenue the "last five years" and then turn around and make decisions that will result in more revenue loss just to appease a small crowd of console warriors.
 
Microsoft's logistics leverage on a grand scale is miniscule compared with Nintendo or PlayStation.

While I still think the new cycle of "we are so back/it's over" is silly and a bit pathetic, I don't envy Asha because the hardware problem is downright unsolvable and unsalvageable for Xbox at this point.
Microsoft's logistics leverage is minuscule compared to Nintendo and Sony?
 
Asha is airing out the laundry, because if she doesn't do it now she would get blamed for it later.

However, where are all the people who used to cheer for Xbox year after year? What about all the awards Phil got being such a good boss? Exactly WHEN did the dumpster fire started?

Because if you ask an Xbox fan, there was NOTHING wrong for the last 20 years! Every year things got better, every year they cheer that they are rich and successful. Xbox was perfect!

And now the one running Xbox is saying the department is a mess. The question is how far BACK was it a mess? And the Xbox people who had been cheering all this time, do they still have any credibility to cheer NOW?

If Xbox fans were wrong to cheer as the Xbox division burned to the ground, how could they even show their face after the fire is put out?
They kept blaming Don Mattrick who was running Xbox at its most profitable stage. Phil should have never took over.
 
That's a good point. Very weird to complain about the loss of revenue the "last five years" and then turn around and make decisions that will result in more revenue loss just to appease a small crowd of console warriors.
I'm still with Jeff Gertsmann on that issue. Gears will be made an example of why Xbox will keep the PS5 publishing after the game flops.
Microsoft's logistics leverage is minuscule compared to Nintendo and Sony?
Entire MS consumer hardware division (we ignore data centers here because they are whole anothe sector of economy) is nowhere near in volume or buying power of Sony PlayStation (that actually produces tons of other gaming stuff outside of consoles) and Nintendo. It's not a controversial take, it's just a fact. And even they are struggling hard with the rising costs and access to nodes and required volumes.
 
If this results in Age of Empires getting killed (again), then I don't fucking care if the entirety of Microsoft just fucking burns to the ground because the company will become completely worthless.
 
Going to get even worse when they bring back exclusives, shame.
Why do people say exclusives won't help Xbox? For years the main complaint was that Xbox had no exclusives, and that everything was also on PC or PS5. Now Xbox is trying to bring exclusives back, and suddenly people are saying it won't matter.
 
Why do people say exclusives won't help Xbox?
Because it's another race to the bottom at this point, and Xbox is alredy a huge moneysing and exclusives (that will cost north of 100m each) won't help with that by limiting the potential audience with excluding way more successful platforms.
 
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