Support NeoGAF

[jm89]

Microsoft planning “major” Xbox layoffs next week

The cuts are expected to be announced next week.

www.theverge.com

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.

These latest layoffs will be in addition to the 6,000 cuts Microsoft already made in May, and on top of the more than 300 impacted earlier this month, too. Any major Xbox cuts will be the latest in a series of big gaming-related layoffs over the past 18 months, after Microsoft laid off 1,900 Activision Blizzard and Xbox employees in January 2024 and then in May 2024 the company closed several game studios, including Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin.

Microsoft also laid off 650 more Xbox employees in September, and also cut around 1,000 employees from its HoloLens and Azure cloud teams in June last year.

 

[RetroGamingUK]

 

[RetroGamingUK]

Seems to reflect reports coming out of the Middle East.

Aren't they launching new hardware next year?

 

[Bitstream]

Seems to reflect reports coming out of the Middle East.

Aren't they launching new hardware next year?

sounds like they're switching to a third party chip maker, and will be creating MS chips that have hardware backwards compatability built in, and then selling them to MSI, ASUS, etc, who will then make their own console with an xbox sticker.

 

[Kacho]

sounds like they're switching to a third party chip maker, and will be creating MS chips that have hardware backwards compatability built in, and then selling them to MSI, ASUS, etc, who will then make their own console with an xbox sticker.

Has this been confirmed?

 

[IDKFA]

Seems to reflect reports coming out of the Middle East.

Aren't they launching new hardware next year?

Sort of.

The rumour is that they'll be more PC than consoles. Also, Microsoft is heading down tne OEM route with third party manufacturers. Think of it like the Valve and the Steam Machines form years ago.

This means Microsoft will need to produce less hardware because they'll be a number of third party machines.

 

[SJRB]

Buddy, at least post a summary or whatever. What are you doing?

 

[Chittagong]

 

[DenchDeckard]

Its done. Pack it up boys.

 

[jm89]

Its done. Pack it up boys.

We told ya.

 

[Horseganador]

Leaving European markets is already a complete throw in the towel for Xbox, what a management disaster.

 

[Bond007]

Keeping their fans hanging on a thread.
Just go Third Party fully and call ita day.

 

[Punished Miku]

We told ya.

You told everyone that Xbox was about to become an unstoppable monopoly that puts Sony out of business if allowed to merge just a year ago lol. Everyone has known Xbox is 3rd place and an underdog for years. Everyone has known they're going 3rd party since Feb 2024. This is what that looks like.

 

[jm89]

You told everyone that Xbox was about to become an unstoppable monopoly that puts Sony out of business if allowed to merge just a year ago lol. Everyone has known Xbox is 3rd place and an underdog for years. Everyone has known they're going 3rd party since Feb 2024. This is what that looks like.

Remember you thinking the acquisitions was needed to make Xbox more competitive?

Good times.

 

[winjer]

It really doesn't matter. Xbox was already irrelevant in Europe, with the exception of the UK.

 

[Punished Miku]

Remember you thinking the acquisitions was needed to make Xbox more competitive?

Good times.

It clearly was?

 

[jm89]

It clearly was?

Did it make them more competitive?

 

[Unknown?]

Leaving European markets is already a complete throw in the towel for Xbox, what a management disaster.

No need to be so negative, they're still in Japan!

 

[Punished Miku]

Did it make them more competitive?

It would if they were allowed to leverage it in any way to be competitive. But they weren't. They were required to make everything available everywhere so it just became extra revenue at that point. That revenue is probably helping save them during this transition.

Their system sales collapsed before they could even integrate Activision fully. Your predictions about a monopoly literally couldn't be more incorrect.

 

[yazenov]

More like Europe left MS and don't buy their product. MS has no choice but to leave as a result. Which came 1st, the chicken or the egg?

 

[xrnzaaas]

Pulling from European markets will surely do great things for the next-generation of consoles.

Or why would you even bother buying an Xbox branded handheld knowing that the future of the entire hardware part of Xbox is uncertain in your region?

 

[jm89]

It would if they were allowed to leverage it in any way to be competitive. But they weren't. They were required to make everything available everywhere so it just became extra revenue at that point. That revenue is probably helping save them during this transition

Only game they were forced to put on playstation was call of duty. Everything else was their choice

 

[RetroGamingUK]

In case anyone was wondering what Central Europe meant

 

[Fake]

What a sad end.

 

[Heisenberg007]

Today I learned that "restructing distribution" can be used as a synonym for "shutting down."

 

[Rush2112]

Hospice status. Wonder when they will discontinue life support.

 

[Heisenberg007]

It would if they were allowed to leverage it in any way to be competitive. But they weren't. They were required to make everything available everywhere so it just became extra revenue at that point. That revenue is probably helping save them during this transition.

Their system sales collapsed before they could even integrate Activision fully. Your predictions about a monopoly literally couldn't be more incorrect.

That's just revisionist history.

When and by whom were they required to make everything available everywhere?

Nobody forced them to make any of their acquired games multiplatform. Phil Spencer wilfully reached out to Sony and Nintendo for 10-year COD only deals. Other ABK games were not even part of that deal.

In addition, they acquired what 23 other studios as well?

The only reason they made those games available on other platforms is not because "they were required to". It is only because of their low console sales - the same console sales that we were told by the green group that do not matter at all.

 

[Bitstream]

Has this been confirmed?

Not officially, no. Trying to read between the lines of the recent AMD & MS partnership video by Lisa Su & the ROG Xbox handheld, etc.

 

[RetroGamingUK]

 

[jm89]

That's just revisionist history.

When and by whom were they required to make everything available everywhere?

Nobody forced them to make any of their acquired games multiplatform. Phil Spencer wilfully reached out to Sony and Nintendo for 10-year COD only deals. Other ABK games were not even part of that deal.

In addition, they acquired what 23 other studios as well?

The only reason they made those games available on other platforms is not because "they were required to". It is only because of their low console sales - the same console sales that we were told by the green group that do not matter at all.

That's a good point I forgot that cod wasn't even required to be put on playstation consoles, rather Phil and co were pushing for it to get the deal through.

 

[Punished Miku]

That's a good point I forgot that cod wasn't even required to be put on playstation consoles, rather Phil and co were pushing for it to get the deal through.

It's honestly not relevant to the discussion and your "We told you so" BS. Most people supporting the acquisition said the biggest thing that would change is the ability to get the games on GP, and the added revenue.

You argued about a monopoly that was a complete joke and didn't tell anyone anything.

 

[jm89]

It's honestly not relevant to the discussion and your "We told you so" BS. Most people supporting the acquisition said the biggest thing that would change is the ability to get the games on GP, and the added revenue.

You argued about a monopoly that was a complete joke and didn't tell anyone anything.

Which monopoly argument are you talking about?

 

[kaizenkko]

So their next "console" will be expensive and without worldwide distribution? People who likes Xbox will suffer even more.

 

[damidu]

their next "experiment" will be a limited market flop, said it like a year ago

 

[Tiago Rodrigues]

I really think this next console will be MSs last.

 

[mayham2199]

So their next "console" will be expensive and without worldwide distribution? People who likes Xbox will suffer even more.

No they wont. Xbox's next move will essentially give everyone access to PC games so they'll be fine. They'll actually get access to PS games through Steam. Xbox users will have to pay for it but otherwise if you want to stay in the ecosystem and keep you library it's not a bad deal. If the device\UI functions properly that is.

 

[Viruz]

 

[Deerock71]

 

[Pedro Motta]

 

[Xbox 360 slim]

I really think this next console will be MSs last.

Hard for anyone to still invest into the Xbox platform. Library security is very shaky I feel. Feels too uncertain.

 

[HeisenbergFX4]

Hard for anyone to still invest into the Xbox platform. Library security is very shaky I feel. Feels too uncertain.

I think most libraries will be safe the question comes into play if they will support whats on disc or not

 

[Pop]

I really think this next console will be MSs last.

I can't imagine the next Xbox pc box made by whoever will sale well

I bet the cost will be pretty high (800+) just for enthusiast who really want it. Wasn't it rumored to be made by third party companies with an Xbox logo slapped on it

 

[kaizenkko]

No they wont. Xbox's next move will essentially give everyone access to PC games so they'll be fine. They'll actually get access to PS games through Steam. Xbox users will have to pay for it but otherwise if you want to stay in the ecosystem and keep you library it's not a bad deal. If the device\UI functions properly that is.

Good luck for everyone outside US who wants to buy this thing. And even for those in US, it will possible be super expensive (or at least more than a subsidiar console).

And yeah, fans will suffer because Microsoft will not keep making traditional consoles, and as ever, they refuse to being clear and honest.

 

[Audiophile]

They're moving to virtual consoles.

"Just close your eyes and imagine"

 

[mckmas8808]

So this is how it ends?......

 

[mayham2199]

Good luck for everyone outside US who wants to buy this thing. And even for those in US, it will possible be super expensive (or at least more than a subsidiar console).

And yeah, fans will suffer because Microsoft will not keep making traditional consoles, and as ever, they refuse to being clear and honest.

We will have to see what happens outside the US. Yes it will be expensive that's why I said they will have to pay. If they can funnel you to a device that functions just like a console that's a pretty good deal. Way better deal then I got when Sega exited the market. Listen will there be some issues that Xbox users have to deal with yes, but this is probably the best case scenario for them considering what's going on.

 

[xrnzaaas]

I think most libraries will be safe the question comes into play if they will support whats on disc or not

I think that problem is already here. A bluray version of the Series X was already removed from sale in some markets, the rest will gradually follow and the stock will be eventually depleted. And considering how Microsoft isn't even releasing their new games in physical form (specifically on the Xbox) it's pretty much a guarantee there's not going be another model like that.

At least Sony is giving us real hope that PS6 may have an attachable drive and despite the key card push Switch 2 still runs old&new cartridges.

 

[semiconscious]

'this is an xbox':

 

[kaizenkko]

We will have to see what happens outside the US. Yes it will be expensive that's why I said they will have to pay. If they can funnel you to a device that functions just like a console that's a pretty good deal. Way better deal then I got when Sega exited the market. Listen will there be some issues that Xbox users have to deal with yes, but this is probably the best case scenario for them considering what's going on.

I live in Brazil, and the way Microsoft handles our market nowadays is, to say the least, disrespectful. Ten years ago, they were doing an excellent job. The console was assembled here and sold at a great price. They distributed physical media, and all their games were fully localized into Brazilian Portuguese.

Today, it's been about two years since it's literally impossible to buy the Series X from official retailers (like Amazon, Kabum, etc.). They raised the price of the Series S to the point where it's priced similarly to the PS5 Slim Digital. Do you know those new models announced last year? They never officially launched here.

Based on my experience, my expectations for this next console aren't good. Doesn't matter if they create something for the fans if that thing ends up being an expensive device with limited distribution. At the end of the day, a lot of people simply won't be able to buy it.

 

[nowhat]

So this is how it ends?......

"Not with a bang but a whimper"