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[Alebrije]

Microsoft Plans Major Job Cuts at Xbox Gaming Division

The video-game division’s latest round of layoffs is expected next week

www.bloomberg.com

 

[Daniel_Mallorca1985]

 

[lh032]

Where do these people go? The industry is shedding staff at an incredible rate. Do they have to move to China for their studios?

form a new studio, get investment, make shitty games, studio close down and run away with the money.

 

[Dr. Wilkinson]

I think this is mostly sales-focused. Not entirely, I'm sure. But, I think normally when you read 'Layoffs at ______ gaming division" we automatically assume it's game developers. There are so many other roles... Studio management, Sales, Marketing, Logistics, Distribution, Accounting, HR, etc. I think for the time being, they've trimmed about all they can trim from actual game development-focused roles. Unless something drastically changes, of course.

 

[onQ123]

Masterful troll or he just stumbled upon NeoGaf recently & not a true form dweller

Was he talking about xbox or the other Microsoft layoffs that has happened the last month or so

He was talking about the upcoming cuts happen in July

 

[freakhead]

They bought ATVI for good $$$. They need a return. Plus everything is an Xbox but an Xbox.

 

[thicc_girls_are_teh_best]

I think this is mostly sales-focused. Not entirely, I'm sure. But, I think normally when you read 'Layoffs at ______ gaming division" we automatically assume it's game developers. There are so many other roles... Studio management, Sales, Marketing, Logistics, Accounting, HR, etc, etc. I think for the time being, they've trimmed about all they can trim from actual game development-focused roles. Unless something drastically changes, of course.

Via The Verge:

Microsoft is planning to restructure parts of its Xbox business as it looks ahead to its next generation of consoles. One source tells me Microsoft is restructuring Xbox distribution across central Europe, resulting in some Xbox operations ceasing in some regions.

That reads like more than simply Sales, Marketing, HR etc.

These are looking like outright closure of operations in certain parts of the world.

 

[StereoVsn]

The cuts are going through multiple divisions, including some of the "money makers" like cloud services.

Basically Satya is plowing $80 billion into AI but wants the overall margins to remain the same, hence the cuts.

And yeah, Xbox is going to be affected alongside the rest.

I was talking to couple MS product folks just recently (company meeting) and they were saying that some of the functionality that we have been asking for have been pushed since main focus is AI and everything else is on back burner. We spend tens of millions $ on MS to give you some scope.

So basically if it's not AI, funding has dried up within MS.

 

[RetroGamingUK]

Thread worthy

 

[Dr. Wilkinson]

I'm sure Xbox can cut somewhere else. I'd be shocked if they closed another studio after the Tango debacle. Xbox PR (and Phil's ego) wouldn't be able to take another shit storm like that.

This. People automatically assume studio closures. There's so many other areas where the cuts could come from. The gaming division is not comprised solely of game development-focused roles.

 

[Dr. Wilkinson]

Thread worthy

Very much so. Mostly cuts to Sales, Logistics, Distribution, in Europe as they cede hardware sales to Sony/ Nintendo, and focus on third-party hardware moving forward.

 

[Horseganador]

It looks like thousands of layoffs are coming at Xbox and the brand seems to be abandoning certain parts of Europe, things are looking very bad.

 

[Dr. Wilkinson]

Via The Verge:



That reads like more than simply Sales, Marketing, HR etc.

These are looking like outright closure of operations in certain parts of the world.

Sure, but... none of that is surprising. Hardware sales have cratered in Europe for them, and knowing they are moving their focus to third-party devices, this makes logical sense. And like I said, none of this is related to game development. We don't even yet know if the next-gen Series X successor will be a fully in-house Xbox product or a third-party partnership with someone like ASUS, like they're doing with the handheld.

 

[Dr. Wilkinson]

It looks like thousands of layoffs are coming at Xbox and the brand seems to be abandoning certain parts of Europe, things are looking very bad.

None of this is new or surprising. Unless you're going out there looking for controversy to drum up. No one whose paid attention to console gaming in the last ~4 years should be surprised that Xbox hardware sales have cratered, especially in Europe. It's entirely been taken over with PS/ Nintendo. Hence, the very public move to focusing on third-party branded devices, beginning with the ASUS handhelds this holiday.

 

[Punished Miku]

None of this is new or surprising. Unless you're going out there looking for controversy to drum up. No one who pays attention to console gaming in the last ~5 years should be surprised that Xbox hardware sales have cratered, especially in Europe. It's entirely been taken over with PS/ Nintendo.

Ask if they want to invest into Xbox hardware in Europe. You'll get a clear answer.

 

[ChorizoPicozo]

xbox's future is too damn bright they need restructuring
-Jez Corden

 

[mayham2199]

If you're talking about the people working at the game development studios, a lot of them will not continue working in gaming. The gaming industry is producing more games than the player base can support, which is why we're seeing so many layoffs.

Exactly there used to be a time where I genuinely would just be waiting for the next game to come out in a month or so. Now I have like 3-4 titles lined up ready to pick from.

 

[Jaybe]

I was talking to couple MS product folks just recently (company meeting) and they were saying that some of the functionality that we have been asking for have been pushed since main focus is AI and everything else is on back burner. We spend tens of millions $ on MS to give you some scope.

So basically if it's not AI, funding has dried up within MS.

I bet Satya regrets that the $70 billion was spent on ABK's acquisition instead of AI related options

 

[Pop]

Thats not enough money, they need more

Spend all those billions on gaming just to die in the end

 

[digoutyoursoul]

Why don't the decision makers leave for a change

 

[BigBeauford]

These studios have been taking hundreds of millions from Microsoft to make crappy walking simulators, DEI infested slop, and games that are the equivalent of Netflix shovelware that no one is buying. Instead of using this golden ticket to make games that are profitable and sustainable, they made games that are "important". It was always going to end this way.

 

[MikeM]

Capitalism is such a bitch sometimes. MS is absolutely going to abuse AI as much as possible to make people unnecessary.

Just wondering where all the required consumption will come from if a lot of people can't find jobs.

 

[Ass of Can Whooping]

Microsofts doing the morally right thing. Better to be laid off than gift your employees with Switch 2s, additional time off and bonus pay. At least with the former you won't feel guilty over taking away shareholder value.

 

[Topher]

Sure, but... none of that is surprising. Hardware sales have cratered in Europe for them, and knowing they are moving their focus to third-party devices, this makes logical sense. And like I said, none of this is related to game development. We don't even yet know if the next-gen Series X successor will be a fully in-house Xbox product or a third-party partnership with someone like ASUS, like they're doing with the handheld.

How do we know none of this is related to game development?

 

[mayham2199]

Just wondering where all the required consumption will come from if a lot of people can't find jobs.

First a lot of people will be very poor. Then things will get so bad that the companies will have to contribute to handing out money because otherwise there will be no one to buy anything. On top of risking revolution since people will have nothing to lose.

 

[Karim]

Future can't be more bright

 

[GHG]

 

[LordCBH]

How do we know none of this is related to game development?

We don't. And I won't be surprised if studios see dev layoffs as well. Especially teams like Ninja Theory who's releases haven't moved the needle at all.

 

[Jaybe]

Xbox tried to absorb Activision. Except Activision was bigger and more profitable than Xbox. Activision basically UNO reversed Xbox and ate the division alive.

Agreed. With the ABK acquisition, ABK's business model third-party publisher of large gaming franchises became Xbox/Microsoft Gaming's end state. Hardware and exclusivity makes little to no economic sense now.

Buying Acitivision Blizzard was essentially overbuying into the gaming space bringing in franchises that dwarf many of the studios they already had acquired din preceding years, making those acquisitions redundant.

I expect Microsoft Gamjng to consolidate on their big franchises: CoD, Elder Scrolls, Fallout, Minecraft, Diablo, Warcraft, Halo, Gears, Forza Horizon, etc. Obviously Compulison Games and Ninja Theory's latest games took many years to make a bomb so I wouldn't be surprised to see them closed. To a lesser extent same with Turn 10, as Forza Motorsport seemed really poorly received. I think Doom and Indiana Jones didn't meet expectations either but those studios know how to out out games that are PC focused and where well reviewed/ received and Doom is a strong franchise.

 

[jm89]

 

[Baemono]

xbox's future is too damn bright they need restructuring
-Jez Corden

He actually meant the light at the end of the tunnel

 

[LordCBH]

Jez trying to explain why Microsoft laying off 15,000 people in like two years means PlayStation is doomed

 

[Unknown?]

First a lot of people will be very poor. Then things will get so bad that the companies will have to contribute to handing out money because otherwise there will be no one to buy anything. On top of risking revolution since people will have nothing to lose.

 

[digoutyoursoul]

He blocked me and I can't remember ever saying anything to him.

 

[mitch1971]

Looks like the Series consoles are out of a job.

 

[mayham2199]

It was the meta quest shit I guess?

 

[Zacfoldor]

What's crazy is there are always tons of guys who believe Xbox has Playstation right where they want them and they are about to turn it all around, lol.

Xbox fucked up. They can't fix this with good products and good games anymore. I'm telling you. You will see soon enough. It wasn't easy to get here and it won't be easy to get out. Unfucking their hardware would require them facing hard truths. It won't happen for many years. They are living off gamepass subs that were started before the fall. They want to rush next gen because they are culturally irrelevant in this one but with next gen comes next gen hardware and when people buy Sony next time instead of Xbox those console gamepass subs go with them. Rock and a hard place.

 

[dottme]

xbox's future is too damn bright they need restructuring
-Jez Corden

I'm not worried. Next year is the good one.

 

[Mr Moose]

How do we know none of this is related to game development?

That's not fun at all.

 

[Ronin_7]

Is this PlayStation fault?

 

[LordCBH]

That's not fun at all.

"Hands on with a product that's been out for years but now has an Xbox sticker on it with no new functionality other than being green."

 

[Judge Magister]

 

[PropellerEar]

Xbox cutting the fat




Just like Ozempic Phil

 

[BennyBlanco]

I donn't know who this guy is but God I just want to punch him in the face repeatedly and his stupid "hairstyle" is stupid what is with the little bangs? Don't @ me yes I'm triggered.

Why does he not have eyebrows or eyelids for that matter?

He's british. Cut him some slack.

 

[LordCBH]

He's british. Cut him some slack.

Don't you mean Bri'ish, guvnah?

 

[Zacfoldor]

That's not fun at all.

A random Xbox branded series S meta quest is the perfect pairing for a Series S gamer like Jez.

 

[Loomy]

I read somewhere that once that happened all sorts of people in Microsoft leadership who didn't give a shit about Xbox started taking a closer look and not liking what they saw. That's what happens when you spend $70 billion.

Two inflection points, if you will. During the 360 days, they noticed that some random division in the company had managed to get a connected box into tens of millions of living rooms. So they elbowed them out of the way to shove TV, DVR, Sports functionality into it. So much so that the reveal barely talked about games. When that crashed and burned, those guys were nowhere to be seen.

And yeah, the $70b bill was like Frodo putting on The One Ring. Drew The Eye of Sauron to them, and turns out Frodo was foaming at the mouth an shitting his pants.

The cuts are going through multiple divisions, including some of the "money makers" like cloud services.

Basically Satya is plowing $80 billion into AI but wants the overall margins to remain the same, hence the cuts.

And yeah, Xbox is going to be affected alongside the rest.

I was talking to couple MS product folks just recently (company meeting) and they were saying that some of the functionality that we have been asking for have been pushed since main focus is AI and everything else is on back burner. We spend tens of millions $ on MS to give you some scope.

So basically if it's not AI, funding has dried up within MS.

Yeah, that's a common theme over the last year, especially the last 6 months.

Same with GCP as well. Going to be interesting to see what the market share is between GCP, Azure, and AWS in 3 years.

 

[Days like these...]

He's british. Cut him some slack.

He can't be British his name is Jim. If he were British his name would be Arse Milk Thistle Jeeves

 

[ThatOneGrunt]

So this would include positions at Activision/Blizzard? Usually after a big acquisition you see the parent company slash jobs and I don't feel like we saw that happen at A/B.

 

[Clear]

Here's the thing about Activision generally and CoD specifically:

Its basically what MS always wanted; one brand that does gangbusters across all platforms including mobile, is massively monetized as a live-service and appears endlessly sustainable.

Its MS Gaming's precious.

Next to that, almost everything else is expendable.