Bloomberg: Microsoft Plans Major Job Cuts at Xbox Gaming Division

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I think the only thing they could do is slowly wind down the amount of games on Game Pass in order to try to make it more profitable. I'm bored and I feel like I'm rambling so I'll stop there lol.

Yeah, with game pass they will likely lessen the third party games on the service and keep hiking up the monthly price to make it less appealing/ more for an enthusiast level
 
Sony did the right move with a $100 cheaper digital only console. I have 0 idea why Microsoft didn't follow suit. Not to mention practically 0 upgrades to the controller.
Just a dumb ass idea thinking they will corner the market with a tard box.

Not surprised about no upgrade of the controller, all the ambassadors swore black and blue the Xbox controller is perfection.
 
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For the love of everything holy. GET FUCKING RID OF GAMEPASS!!!!!!!! Why are they determined to stay on the sinking boat as it plummets into the abyss. Gamepass has failed so move TF on and pivot.
Explain to me how getting rid of the only bright spot in their ecosystem and 35 million subscribers in revenue would help Xbox anyway lol
 
Explain to me how getting rid of the only bright spot in their ecosystem and 35 million subscribers in revenue would help Xbox anyway lol
35M subs in revenue is making almost the same or a little more than 50M of PS+ subs with the difference than GP killed games sales on Xbox and PC.

You are right about the "ecosystem" but it's meaningless if they keep losing money overall.
 
They keep getting rid of the wrong people. Nothing changes unless you make the difficult leadership cuts.
The only people interested in Gaming are the current leadership (even though they are not very good at it). So no one else wanted the job. If they get fired Xbox would just cease to exist.
 
When does Phil Spencer get cut.

Don't like to see any cuts but it seems the time has come. Spencer is frankly not getting the job done.

Some accountability has to take place. Their strategies are constantly changing and that's where the buck stops.

At the top.

At least IMO.
 
The minions didn't even know they were being setup to look crazy 😭


Post in thread 'Tom Warren: Expect an Xbox Event in January' https://www.neogaf.com/threads/tom-warren-expect-an-xbox-event-in-january.1678624/post-269921651
Damn, this happened within a week?

turntables GIF
 
35M subs in revenue is making almost the same or a little more than 50M of PS+ subs with the difference than GP killed games sales on Xbox and PC.

You are right about the "ecosystem" but it's meaningless if they keep losing money overall.

From business perspective I really think MS need to get rid of the day one releases on GP. It just devalues product and I don't think it works. Especially not if you're going big in third party. You can do timed trials, or maybe a few months down the line much like Sony and EA.
 
From business perspective I really think MS need to get rid of the day one releases on GP. It just devalues product and I don't think it works. Especially not if you're going big in third party. You can do timed trials, or maybe a few months down the line much like Sony and EA.
It's insane that everyone has been saying how bad Game Pass is for the overall economy of games. (even inside MS, red flags were raised) and still, Phil pushed forward with this initiative.
 
It's insane that everyone has been saying how bad Game Pass is for the overall economy of games. (even inside MS, red flags were raised) and still, Phil pushed forward with this initiative.
They were hoping to corner the marketplace with the initiative. Turns out all you can eat gaming is not quite the same as passive viewing. And it's easy to see, one game you can play for months, no chopping and changing infinitely - the value proposition is lacking.
 
It's insane that everyone has been saying how bad Game Pass is for the overall economy of games. (even inside MS, red flags were raised) and still, Phil pushed forward with this initiative.
Their goal seemed to be to try to break into all the stores (I bet they are very happy about lawsuits like the one Epic brought and would want to make it happen with Nintendo and Sony if they could… look at the Nintendo merger dreams Phil was painting and how one of their BoD buddies was helping out buying stocks and pushing for a merger friendly agenda).

If they can get GamePass everywhere they would kill off game sales which is the model Nintendo and Sony operate by and it would shift into a battle of who has the most software IPs to offer to the streaming service (at that point more and more of those titles would be everywhere … everywhere GamePass is and only on GamePass).

This was clearly their strategy which luckily they executed poorly on and it is why I do not get the "must support MS and Xbox, it is for the competition… think of the competition" when that was the strategy they had for the entire industry (a scorched earth approach).
Also, when a $3.2 Trillion corp is competing and failing it is fair they fail hard (if you care about competition long term ).
 
They were hoping to corner the marketplace with the initiative. Turns out all you can eat gaming is not quite the same as passive viewing. And it's easy to see, one game you can play for months, no chopping and changing infinitely - the value proposition is lacking.

Their goal seemed to be to try to break into all the stores (I bet they are very happy about lawsuits like the one Epic brought and would want to make it happen with Nintendo and Sony if they could… look at the Nintendo merger dreams Phil was painting and how one of their BoD buddies was helping out buying stocks and pushing for a merger friendly agenda).

If they can get GamePass everywhere they would kill off game sales which is the model Nintendo and Sony operate by and it would shift into a battle of who has the most software IPs to offer to the streaming service (at that point more and more of those titles would be everywhere … everywhere GamePass is and only on GamePass).

This was clearly their strategy which luckily they executed poorly on and it is why I do not get the "must support MS and Xbox, it is for the competition… think of the competition" when that was the strategy they had for the entire industry (a scorched earth approach).
Also, when a $3.2 Trillion corp is competing and failing it is fair they fail hard (if you care about competition long term ).
yep

"spend Sony out of business"

i don't think the average Xbox fanboy (the ones that are usually asking "why people want Xbox to fail" etc) understand or even realize that MS/Xbox was ready to fuck the entire industry just to "win".
 
Big transformation to restructure your business away from making and selling (and more importantly, supporting) gaming hardware.

I'm not surprised at all.

They're going in a completely different direction with the business I guess (software services company + OEM Xbox chips).
 
The underdog doing exactly the same product as the market leader for two generations with worse exclusives didn't work, huh?
 
Well, Xbox is becoming a Windows based externally produced device, a sticker and some boot screens and UI elements.

All the people of hardware manufacturing , sales, disc pressing, are redundant now.

They will most probably get rid of most the commercial infrastructure, and some layoofs in not successful studios like Ninja Theory.
 
There could be many factors here.

1. These studios seriously over hired during the covid boom years.
2. Due to various initiatives, and said boom years the quality of the hires may not have been optimum, so a lot of dead weight.
3. It is possible that the higher ups view some studios as having become too ideological and toxic, especially in light of current market realities and consumer sentiment, if there's a high number of idealogues, it's hard to change course and culture without cleaning house.
4. Studios have grown so big they've forgotten how to be efficient and spend sustainably with limited resources, plus the sheer size innately introduces significant inefficiencies, bloating budgets and timelines.
5. Failing revenue vs the cost. Microsoft like good margins, their games business has slim margins and they've spent a vast amount of funds that will take many many many decades to make back at the current rate of profit.
6. Ai, both needing fewer staff, and different staff, Ai will mean you need LESS (not none) of the specialised roles, and need more generalists who are multitalented and trained or experienced in Ai workflows (and an open willingness to enthusiastically adopt them). This may mean after substantial firing there may be more, different, hires.
 
I would be concerned if I would be Phil Spencer, one day they will make the decision to keep either him or Sarah Bond. And as a white straight guy he doesn't have any chance.
 
And this is because they spent 70 billions and said they would save the industry. Like I said multiple times, someone gonna have to pay for that Call of Duty tax.

In the mean time
" Why everyone wants Xbox to fail, I don't understand"
 
I hope artists who made visuals will stay. Both games just need good writers and gameplay designers.

Copilot is the new artist. Ha! Seriously though. Unfortunately I think most artists will be 1st on the chopping block due to AI. They'll probably just keep a few to tell AI what to do and then tweak the output some.
 
It's insane that everyone has been saying how bad Game Pass is for the overall economy of games. (even inside MS, red flags were raised) and still, Phil pushed forward with this initiative.
Bobby Kotick took the stand during the antitrust trial for the Activision Blizzard acquisition and literally told the judge he wouldn't put Call of Duty on a subscription service as it would reduce revenues and MS acquired them and put CoD on Gamepass and everyone acted shocked when it reduced revenue
 
Bobby Kotick took the stand during the antitrust trial for the Activision Blizzard acquisition and literally told the judge he wouldn't put Call of Duty on a subscription service as it would reduce revenues and MS acquired them and put CoD on Gamepass and everyone acted shocked when it reduced revenue
Turns out, most gamers still prefer to own, rather than rent their games. If COD couldn't drive subs up, what the hell can?
 
Sony did the right move with a $100 cheaper digital only console. I have 0 idea why Microsoft didn't follow suit. Not to mention practically 0 upgrades to the controller.
Anecdotally I saw a lot of kids buying or getting Series S as it was reasonably priced and they were probably ignorant of the technical differences (other than maybe storage capacity).

Since then almost all of my son's friends that got a Series S are now on or planning to get PS5s, mostly because they feel left out of the PS group chats, Share Play (surprisingly popular with kids) and friend invites, despite the fact that almost every game they all play on are F2P GaaS cross platform games.
 
Something became so crystal clear to me last night that I cannot believe we all do not 100% believe this.

The Microsoft PC/console hybrid experiment will fail and possibly crash gamepass. Xbox is living off borrowed time. From the day of the launch of the next device, we start a countdown to full 3rd party. There is no path for its success and Microsoft not only very much knows this already, they planned it this way.

We are witnessing a great software consolidation at Microsoft. They have no interest in hardware. They do have an interest in not pissing the existing fanbase off, so you get hardware, but that's not the product they care about. That's a bone they are throwing us to keep us engaged until play anywhere iot becomes ubiquitous.

To understand how obtuse Microsoft has been, you only need look at Windows. Only very recently did they discover how shitty Windows is for PC gaming and move to do something about it. All these years we trusted the OS to be somewhat optimized for games. lol. Now they are scrambling to fix it. They are celebrating adding shortcuts for non-MS games in the MS store. A simple quality of life feature I remember from my youth that Steam already had for decades. Xbox's hardware future is very much on the winds of fate right now.
Serious Brian Cox GIF by SuccessionHBO
 
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It wasn't too long ago that Jizz Condom was saying that no Xbox games are coming to other consoles. Now they are winding down the console business and seem to be moving to licensing the xbox brand whoever.
Pretty sad, I liked the 360 but starting with kinect they xbox leadership made stupid decision after stupid decision.
 
How do we know none of this is related to game development?
We don't. My point was clearly stated, but the context seems to have been lost in people's responses. My point is a large number of people in their gaming division are not directly related to game creation/ development, but people often assume it's layoffs in game development. This particular round of mass layoffs, it actually seems to be the opposite, that it's mostly in Sales and distribution, focused in Europe. We shall find out next week.
 
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We don't. My point was clearly stated, but the context seems to have been lost in people's responses. My point is a large number of people in their gaming division are not directly related to game creation/ development, but people often assume it's layoffs in game development. This particular round of mass layoffs, it actually seems to be the opposite, that it's mostly in Sales and distribution, focused in Europe. We shall find out next week.

"And like I said, none of this is related to game development"

I was replying to that, not people's responses. But you are right. We don't know. Assumptions either way are still assumptions.
 
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