Bloomberg: Microsoft Plans Major Job Cuts at Xbox Gaming Division

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I bet this disproportionately affects uk studios due to the employer national insurance increase
Only one that comes to mind that could be hit is ninja theory, maybe not a complete shutter as i think they do other stuff like mocap or something? Can't remember.

The other uk companies i can think of is rare and playground but wouldn't make much sense imo, sea thieves and forza horizon look like big successes.

But then again these guys will be looking to save money whereever they can.
 

Xbox still has to stand on its own two feet though, it cant be propped up by daddy Microsoft forever. Multi million (billion) dollar companies are rich because they are ruthless and cut/make cuts to the parts that are failing (in the case of Microsoft look at Windows Phone, Microsoft Band, Zune, Surface RT, Hololens to name a few)
 
Why do I get the feeling that Ninja Theory is getting the ol' "Hi Fi Rush". Chucking Hellblade onto Playstation and being shut down right afterwards?
 
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Why do I get the feeling that Ninja Theory is getting the ol' "Hi Fi Rush". Chucking Hellblade onto Playstation and being shut down right afterwards?
It's a miracle Ninja Theory has existed for this long. They have never made a single good game, going all the way to Heavenly Sword in 2007

How they have survived for 18 years when many other good studios have died is a mystery
 
Wonder if this is related… Is Sarah Bond being promoted or fired? Or was this just some Juneteenth thing?

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🤔
 
Xbox still has to stand on its own two feet though, it cant be propped up by daddy Microsoft forever. Multi million (billion) dollar companies are rich because they are ruthless and cut/make cuts to the parts that are failing (in the case of Microsoft look at Windows Phone, Microsoft Band, Zune, Surface RT, Hololens to name a few)

Layoffs are happening company wide and I don't know of any failing products they are tied to. Last earnings call showed Xbox revenue up and hardware declines slowing.
 
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I'm largely unsympathetic to the industry over the layoff wave, even more so at Microsoft. Difference is that I don't cover up my fanboyism in appeals to labor activism.

I hate it here. They grow in value faster and faster every fucking year and then layoff more and more people.

This shits all fucking broken.
Growing in market value doesn't necessarily mean you've got payroll debt to spare. Microsoft is a very large company that spends a lot of money to function. Trillion dollar companies don't stay at that level by being that wasteful with spending. Contrary to the decade-old claims by the Harbingers of the Warchest, Microsoft isn't here to subsidize an Xbox bloated to the size they are.

Im sorry what? 10 to 20% of xbox entire workforce AND studio closures? Wtf?
It's only going to get worse from here. I do not think Obsidian of InXile last up to this time next gen. Their games have taken up so much time and resource and aren't doing/wont do the business needed to justify.
 
It's a miracle Ninja Theory has existed for this long. They have never made a single good game, going all the way to Heavenly Sword in 2007

How they have survived for 18 years when many other good studios have died is a mystery

So much this.

One the most overhyped companies that always put spectacle above gameplay which, the little of it that was featured always was sleep-inducing.

- Kung Fu chaos : no comment

- Heavenly sword : bad, boring GOW wannabe with huge technical problems (abysmal framerate/jaggies galore/tearing)

- Enslaved : ran much better than HS but G'damn if it was a boring, "mash X to win", auto-pilot shallow gameplay bullshit.

- Bleeding Edge : we all know what happened to that one (mid as hell, died a quick death).

- DmC : Emo, edge Lord bullshit, the worst DMC out there, I'd literally play DMC2 over this pathetic attempt.

- Hellblade : not much of a "game", good audio, OK graphics and that was pretty much it.

- Hellblade 2 : same as above

How the hell did this company managed to stay afloat all these years I'll never understand with this constant , incredibly mediocre output.
 
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Only one that comes to mind that could be hit is ninja theory, maybe not a complete shutter as i think they do other stuff like mocap or something? Can't remember.

The other uk companies i can think of is rare and playground but wouldn't make much sense imo, sea thieves and forza horizon look like big successes.

But then again these guys will be looking to save money whereever they can.
I don't think success will make much of a difference when number on spreadsheet must go up
 
I don't think success will make much of a difference when number on spreadsheet must go up
Bottom line is all that matters as no telling how many redundant useless positions a company like MS/Xbox has

Hate to be the cold hearted one but layoffs are just part of life

I played baseball with many people who were just let go at a moments notice and sell insurance or some other line of work

Improvise, adapt, and overcome
 
Only one that comes to mind that could be hit is ninja theory, maybe not a complete shutter as i think they do other stuff like mocap or something? Can't remember.

The other uk companies i can think of is rare and playground but wouldn't make much sense imo, sea thieves and forza horizon look like big successes.

But then again these guys will be looking to save money whereever they can.
The new Xbox Game Studios head is ex-Rare, no way they'd touch Rare unless a gigantic fuck up is made.

id Software just shipped Doom and they still have to ship the DLC roadmap, so they're safe despite Doom potentially underperforming.

Machine Games just shipped Indiana Jones on PS5, and they are about to ship the DLC, so they're safe for at least that long.

Compulsion Studios should almost certainly be afraid though.
 
Bottom line is all that matters as no telling how many redundant useless positions a company like MS/Xbox has

Hate to be the cold hearted one but layoffs are just part of life

I played baseball with many people who were just let go at a moments notice and sell insurance or some other line of work

Improvise, adapt, and overcome

Eh......widespread layoffs in the thousands like this are about cutting costs and increasing margins. I seriously doubt they are looking at each individual position and analyzing whether that position is redundant.
 
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Found this. Think it's a bit dated as it still has Tango on it. In a world where you have moved to being the largest third party publisher, I don't see how small studios and new IP mean much to you when you've got so many massive franchises. Finance is likely doing some rudimentary $ revenue per employee math on each of these and questioning them. Especially after the latest year of releases.

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Bottom line is all that matters as no telling how many redundant useless positions a company like MS/Xbox has

Hate to be the cold hearted one but layoffs are just part of life

I played baseball with many people who were just let go at a moments notice and sell insurance or some other line of work

Improvise, adapt, and overcome
I feel something is off about this round though.

Never before have I felt like I was given an invitation to come and gawk at a trainwreck that is gonna happen. So surreal that we're all getting so much advance notice on this, including from known Xbox insiders like Tom Warren.

Even George Broussard is talking about it potentially being 1000-2000 people impacted and studios shuttered
 
I feel something is off about this round though.

Never before have I felt like I was given an invitation to come and gawk at a trainwreck that is gonna happen. So surreal that we're all getting so much advance notice on this, including from known Xbox insiders like Tom Warren.

Even George Broussard is talking about it potentially being 1000-2000 people impacted and studios shuttered

Also sounds like a number of job cut are being outsourced
 
I feel something is off about this round though.

Never before have I felt like I was given an invitation to come and gawk at a trainwreck that is gonna happen. So surreal that we're all getting so much advance notice on this, including from known Xbox insiders like Tom Warren.

Even George Broussard is talking about it potentially being 1000-2000 people impacted and studios shuttered


Xbox is 20K people not 10K. It's strange that someone who should know better doesn't know this data.

That said, laying off 1,000-2,000 people is still just as dramatic. We'll see how they're distributed and where those staff cuts will be concentrated. I wouldn't want small/AA studios to pay the price, seeing as the industry and major publishers seem to only bet on big projects and well-known IPs. Investing in these types of studios with 60-80 people, moderately budgeted projects with creative freedom, is more necessary than ever when development times are so long.
 
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What was the point to buy all these studios to shut down soon as possible?

Gamepass is not sustainable this is pretty obvious.

I feel bad for some good studios they have like Arkane.
 
Xbox is 20K people not 10K. It's strange that someone who should know better doesn't know this data.

That said, laying off 1,000-2,000 people is still just as dramatic. We'll see how they're distributed and where those staff cuts will be concentrated. I wouldn't want small/AA studios to pay the price, seeing as the industry and major publishers seem to only bet on big projects and well-known IPs. Investing in these types of studios with 60-80 people, moderately budgeted projects with creative freedom, is more necessary than ever when development times are so long.
He got the total head count wrong, but it's honestly strange that so much time has passed without an official confirmation from Microsoft on the number already or even an official announcement already.

It's not normal to leave employees and general observers antsy over layoff news for almost a week now.
 
I feel something is off about this round though.

Never before have I felt like I was given an invitation to come and gawk at a trainwreck that is gonna happen. So surreal that we're all getting so much advance notice on this, including from known Xbox insiders like Tom Warren.

Even George Broussard is talking about it potentially being 1000-2000 people impacted and studios shuttered

Agreed. But, to be fair, it is a big trainwreck. Imagine laying off 10%-20% of a division's workforce - which literally relies on human resources and their creativity.
 
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I'm still trying to understand what the point in buying a bunch off huge studios, only to bottle it and go third party before the first gam comes out... Mental
 
What was the point to buy all these studios to shut down soon as possible?

Gamepass is not sustainable this is pretty obvious.

COD, Elder Scrolls, Doom, Fallout…

…all exclusive to Xbox

Market dominance

By the time Activision was acquired it was too late, the plan had become unfeasible.
 
He got the total head count wrong, but it's honestly strange that so much time has passed without an official confirmation from Microsoft on the number already or even an official announcement already.

It's not normal to leave employees and general observers antsy over layoff news for almost a week now.
I was simply highlighting how shocking it is that people supposedly inside the industry and handling information sources don't know this data. 20K vs 10K is a serious data error.

Regarding the delay in making the layoffs official... Nothing new, MS is notorious for its lack of humane treatment when it comes to staff cuts. Most of those affected sadly will surely receive notification without prior notice.

Another issue is the possible closure of Studios. By now (assuming it will be made official this week), the bosses and those responsible for them should already know about it.

We'll see.
 
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I'm still trying to understand what the point in buying a bunch off huge studios, only to bottle it and go third party before the first gam comes out... Mental
Normally you sacrifice what you purchased to make what you had stronger. But this time they purchased a company that was larger and more successful than Xbox itself. So instead of killing Activision to strengthen Xbox, the reverse happened and Activision ATE Xbox.

Or as i said before, it was an UNO Reverse event. Activision ate Blizzard, and now they ate Xbox.
 
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Agreed. But, to be fair, it is a big trainwreck. Imagine laying off 10%-20% of a division's workforce - which literally relies on human resources and their creativity.
I would honestly pay good money for a proper documentary on the inner workings of Xbox and PS this gen.

So much drama happening behind the scenes that is couched in PR-friendly buzzwords to the public.
 
COD, Elder Scrolls, Doom, Fallout…

…all exclusive to Xbox

Market dominance

By the time Activision was acquired it was too late, the plan had become unfeasible.
It is doubtful the Actiblizz acquisition would have been approved by regulators without leaving COD multiplatform (didn't the final deal with FTC mandate ten years of non-exclusivity?). So if the original idea was to make COD exclusive, it was remarkably poorly thought out.
 
I was simply highlighting how shocking it is that people supposedly inside the industry and handling information sources don't know this data. 20K vs 10K is a serious data error.

Regarding the delay in making the layoffs official... Nothing new, MS is notorious for its lack of humane treatment when it comes to staff cuts. Most of those affected sadly will surely receive notification without prior notice.

Another issue is the possible closure of Studios. By now (assuming it will be made official this week), the bosses and those responsible for them should already know about it.

We'll see.
He's likely not counting subsidiaries like Bethesda and ABK but XGS themselves.
 
He's likely not counting subsidiaries like Bethesda and ABK but XGS themselves.
XBox Studios isn't 10K either. And if that were the reason... Would that mean that the layoffs only apply to people at XBOX Studios and not ABK-Bethesda?

I think it's simply a (shocking, though) error of knowledge or a lapse.

I'm wondering what it all means. It's clear the layoff announcement is imminent. Prolonging the official announcement for so long after so many have already announced the plans is not humanly acceptable. Very sad.
 
COD, Elder Scrolls, Doom, Fallout…

…all exclusive to Xbox

Market dominance

By the time Activision was acquired it was too late, the plan had become unfeasible.


Really, thinking about how things have gone everywhere, I do think it's probably the best path all round. Nothing was going to ever stop these cuts either way, but at least each three will follow their own path with still plenty of games across to be satisfied. You only need Sony and Nintendo in the console space, with Microsoft going third party for their games all round. I want to take advantage of Game Pass as long as I can.
 
I'm still trying to understand what the point in buying a bunch off huge studios, only to bottle it and go third party before the first gam comes out... Mental

When your division is responsible for the largest acquisition in the entire history of a company as large as Microsoft, the rest of the company and investors will start asking for ROI on an immediate basis.

How the people in charge of the division didn't realise this I will never know, but they clearly thought they would get at least a couple more years of flying under the radar.
 
XBox Studios isn't 10K either. And if that were the reason... Would that mean that the layoffs only apply to people at XBOX Studios and not ABK-Bethesda?

I think it's simply a (shocking, though) error of knowledge or a lapse.

I'm wondering what it all means. It's clear the layoff announcement is imminent. Prolonging the official announcement for so long after so many have already announced the plans is not humanly acceptable. Very sad.
It's hard to say what he meant by "xbox unit" but if you exclude ABK and include other employees of xbox outside of just internal studios it's probably not far off. Tom Warren has said it entails restructuring "Xbox distribution across central Europe", whatever that means/includes.
 
Bottom line is all that matters as no telling how many redundant useless positions a company like MS/Xbox has

Hate to be the cold hearted one but layoffs are just part of life

I played baseball with many people who were just let go at a moments notice and sell insurance or some other line of work

Improvise, adapt, and overcome
The layoffs nowadays is just to cook the books to make the numbers look good each quarter its not about redundant useless positions.

If companies keep laying off at this pace that started after the pandemic they won't have enough customers left to buy their products which is usually gear towards people in these white collar jobs and they are damaging their company's reputation being an unstable place to work.
 
When your division is responsible for the largest acquisition in the entire history of a company as large as Microsoft, the rest of the company and investors will start asking for ROI on an immediate basis.

How the people in charge of the division didn't realise this I will never know, but they clearly thought they would get at least a couple more years of flying under the radar.
It isn't just the largest, it used up 1/3rd of MS's cash reserves at the time (iirc) during a period of interest rate hikes. And it forced Microsoft to spend a lot of its soft power and influence with regulators around the world to get it through.

The 1st thing in particular makes me think that Amy Hood has a laser scope pointed at Phil's office window 24/7.
 
Didn't some sort of a union endorse the merger? Wonder how they didn't see these layoffs coming when all these companies merged,
 
The layoffs nowadays is just to cook the books to make the numbers look good each quarter its not about redundant useless positions.

If companies keep laying off at this pace that started after the pandemic they won't have enough customers left to buy their products which is usually gear towards people in these white collar jobs and they are damaging their company's reputation being an unstable place to work.
I have no idea how many positions were deemed useless and/or redundant

People will still flock to MS/Xbox to work there regardless of their reputation because too many people see it as a dream position much like any other big named company

Layoffs just arent a big deal to me who "worked" in a field that one day I woke up at the age of 33 and was told I likely would not be resigned to any major league contract effectively meaning I was out of a job

And before anyone says yeah but you played a professional sport, look up salaries in the 1990s of middle relief pitchers, I didn't earn my wealth from that
 
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