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[Lunatic_Gamer]

It's being reported that the gaming industry across Europe is in panic, as studios that either had deals with Xbox or were part of outsourcing teams helping on larger Xbox projects are now having to suddenly adapt to losing a great deal of work and funding.

This comes from Ireland-based journalist Lex Luddy, who explained what he had heard from sources across Europe on the Rewinder podcast.

"The story here really is that these layoffs are way bigger than the number that Microsoft is reporting, because there's a lot more indirect layoffs happening than are being reported," says Luddy (at around the 1:02:00 mark). "It was described to me as people are at panic stations."

As Luddy explains, this is because many companies rely on work being outsourced to them by publishers like Xbox. "Look at Iron Galaxy being farmed out for Tony Hawk, or Virtuos being hired to do the Oblivion remake," she says. "Studios like that, who contract work primarily, a lot of them have had huge swaths of work pulled from the schedule, and there's no one to fill it in. As a result, there have been layoffs."

While the knock-on effect of these layoffs is still being felt, some in the industry are speaking out about Xbox's impact at large. Most recently, it was the Game Pass model in the line of fire.

"People Are At Panic Stations": The Xbox Layoffs Are Reportedly Even Worse Than We Thought

Xbox's layoffs were damaging enough, but it's now being reported that the knock-on effect is leading to even more job losses.

www.thegamer.com

 

[DenchDeckard]

But aren't contract workers a negative? I read that on here. Isn't it the cause of the mediocre releases we have seen?

I dont wanna see anyone lose their jobs but maybe cutting contract workers would be a benefit in the long run?

 

[Negotiator101]

It's being reported that the gaming industry across Europe is in panic, as studios that either had deals with Xbox or were part of outsourcing teams helping on larger Xbox projects are now having to suddenly adapt to losing a great deal of work and funding.

This comes from Ireland-based journalist Lex Luddy, who explained what she had heard from sources across Europe on the Rewinder podcast.






While the knock-on effect of these layoffs is still being felt, some in the industry are speaking out about Xbox's impact at large. Most recently, it was the Game Pass model in the line of fire.

"People Are At Panic Stations": The Xbox Layoffs Are Reportedly Even Worse Than We Thought

Xbox's layoffs were damaging enough, but it's now being reported that the knock-on effect is leading to even more job losses.

www.thegamer.com

Lex Luddy?

 

[Lupin3]

 

[Blood Borne]

One major factor frustrating both gamers and developers is Microsoft's lack of clear communication about its vision and strategy. They're tiptoeing around the issue instead of addressing it head on

Microsoft needs to make a definitive statement, that they're exiting the hardware business and shifting their focus entirely to software publishing. Being upfront about this would finally "rip off the band-aid," allowing gamers to adapt to the new landscape and giving developers and publishers the clarity they need to adjust their strategies accordingly.

 

[tusharngf]

Is Phil on the list?

 

[Gonzito]

 

[PeteBull]

 

[Viruz]

 

[RAIDEN1]

One major factor frustrating both gamers and developers is Microsoft's lack of clear communication about its vision and strategy. They're tiptoeing around the issue instead of addressing it head on

Microsoft needs to make a definitive statement, that they're exiting the hardware business and shifting their focus entirely to software publishing. Being upfront about this would finally "rip off the band-aid," allowing gamers to adapt to the new landscape and giving developers and publishers the clarity they need to adjust their strategies accordingly.

This is where the likes of IGN should have the balls to ask these Microsoft/Xbox management the direct questions...

 

[winjer]

Microsoft has become one of the worst things to happen in gaming.
They are on a scorched earth mentality, that is destroying studios, IPs and jobs.

 

[DeltaPolarBear]

To be fair, it is obvious that when you cancel a game, you would also cancel all the outsourced work as well. Like if a car company cancel a car production, it means lost business with all the parts suppliers. These suppliers would then had to fire staff that are not directly related to the Car company.

So Xbox didn't lie. They reported the people they fired who were their employees on the books. But the mass firing would also involve contracts with 2nd party studios. There is an actual shrinking of Xbox projects, which means a shrinking of work to do by studios who normally get hired to help with these projects.

This was always going to happen when a Console dies. SEGA had many IPs and many studios they work with to support the SEGA machines. When SEGA went 3rd party, many of the minor game IPs just ceased to be, and many 2nd party studios lost work. Some of the studios end up working for Xbox.

It's like when a big factory close down in a small town, which drags the economy of the entire community down with it. I do hope they can find work elsewhere. More importantly:

One major factor frustrating both gamers and developers is Microsoft's lack of clear communication about its vision and strategy. They're tiptoeing around the issue instead of addressing it head on

Microsoft needs to make a definitive statement, that they're exiting the hardware business and shifting their focus entirely to software publishing. Being upfront about this would finally "rip off the band-aid," allowing gamers to adapt to the new landscape and giving developers and publishers the clarity they need to adjust their strategies accordingly.

We need to have MS officially going 3rd party, in order to officially declare open season for a new competitor to show up. No one wants to come 4th place behind Xbox, so Xbox need to go first before we can get new blood.

 

[Sebastian1295]

Microsoft has become one of the worst things to happen in gaming.
They are on a scorched earth mentality, that is destroying studios, IPs and jobs.

It happened when they bought rareware all those years ago and ruined them.

 

[winjer]

It happened when they bought rareware all those years ago and ruined them.

It happened way before that in PC gaming.

 

[Germuso]

Thanks uncle phil

 

[Sooner]

"The hardware of Xbox is down, but the software is doing great."

 

[PlayStaytion]

It's all 1st party studios bs all over again. We do care about games as much but the term 'exclusives' has lost it's meaning and the sooner they adapt to 3rd party terminology the better, there's nothing to lose effectively by doing that.

 

[Skifi28]

But aren't contract workers a negative? I read that on here. Isn't it the cause of the mediocre releases we have seen?

I dont wanna see anyone lose their jobs but maybe cutting contract workers would be a benefit in the long run?

I think you are confusing the contract work in internal projects in order to avoid paying developers as much as possible (which is a huge negative any way you see it for both people and the project) like it was reported with turn10, with contracting entire third party studios for games/projects which is being reported here, like how Romero's studio was basically closed as work was pulled I imagine.

Weren't you apologizing a couple of days ago for being so lenient with MS all these years? Old habits die hard.

 

[Orbital2060]

One major factor frustrating both gamers and developers is Microsoft's lack of clear communication about its vision and strategy. They're tiptoeing around the issue instead of addressing it head on

Microsoft needs to make a definitive statement, that they're exiting the hardware business and shifting their focus entirely to software publishing. Being upfront about this would finally "rip off the band-aid," allowing gamers to adapt to the new landscape and giving developers and publishers the clarity they need to adjust their strategies accordingly.

No thats just what you want.

They are launching a new console gen and you just have to deal with that.

 

[Labadal]

Most games that are worked on by first party studios usually have support studios. Not all support studios are first party. Hearing about more closures that aren't owned by Microsoft shouldn't come as a shock.

 

[PlayStaytion]

But aren't contract workers a negative? I read that on here. Isn't it the cause of the mediocre releases we have seen?

I dont wanna see anyone lose their jobs but maybe cutting contract workers would be a benefit in the long run?

It's the negative side of exclusives which is receiving common rejections from the community. 3rd party games, fortunately, don't have this issue.

 

[Rush2112]

Layoffs in outsourced companies aren't official xbox employees. Why would xbox report them?

 

[Bradamante3D]

Translation: Microsoft is no longer willing to subsidize their own failing ecosystem.

But aren't contract workers a negative? I read that on here. Isn't it the cause of the mediocre releases we have seen?

Not necessarily. In the end it shouldn't matter if your texture artist is in the U.S., in Europe or in Antarctica. However, the home office invasion during Covid has shown that remote teams are hard to manage and harder to adhere to a single vision.
And there are some very negative badly managed outsorcing examples, like Warcraft III Reforged, that was developed by a Malaysian studio where Blizzard either didn't care or managed badly.

 

[dragonyeuw]

Wouldn't the onus be on the outsourced companies to announce that they're no longer involved with Xbox projects, instead of Microsoft announcing it? In that sense they're not layoffs in the same vein as Xbox actually laying off internal employees/closing down studios ( I'm not a business person so that may be completely wrong).

 

[GriffinCorp]

Microsoft buys gaming and kills it... Film at 11.

We knew layoffs would come with a large scale merger but canceling the high profile games in development for 5/7+ years was a stocker. Hundreds of millions must have been lost on that. Microsoft gaming management must be atrocious.

 

[Jinzo Prime]

This comes from Ireland-based journalist Lex Luddy, who explained what she had heard from sources across Europe on the Rewinder podcast.

This person has 46 subscribers, are we really taking this as gospel?

 

[LiquidMetal14]

Phillip Mortimer Spender Biden

Xbox collapsing the industry with their bad management

Better to go the way of Sega. I am looking forward to the Ally but I was going to always look forward to the next best thing to upgrade from my Ally

 

[diffusionx]

But aren't contract workers a negative? I read that on here. Isn't it the cause of the mediocre releases we have seen?

I dont wanna see anyone lose their jobs but maybe cutting contract workers would be a benefit in the long run?

hiring a studio to make your game is not the same thing as contract workers, holy shit

 

[HeisenbergFX4]

This comes from Ireland-based journalist Lex Luddy

 

[Shubh_C63]

Imagine building a studio from ground up and then be scared to be affiliated in any shape and form with Microsoft.
Great confidence sir. better be independent.

MS must have approached Remedy countless times during the Quantum Break era to be bought. Good for them.

 

[HeisenbergFX4]

This person has 46 subscribers, are we really taking this as gospel?

lol you're right this whole thread is based off a video from a Youtube channel with 46 subs and has 79 views in one day

 

[LordCBH]

As Luddy explains, this is because many companies rely on work being outsourced to them by publishers like Xbox. "Look at Iron Galaxy being farmed out for Tony Hawk, or Virtuos being hired to do the Oblivion remake," she says. "Studios like that, who contract work primarily, a lot of them have had huge swaths of work pulled from the schedule, and there's no one to fill it in. As a result, there have been layoffs."

I mean that really sucks, but that's not really a Microsoft layoff?

Also, fucking who?

 

[ChorizoPicozo]

maybe this is what it took to keep Game Pass prices down. A small sacrifice to keep making Game Pass the best deal in gaming even more profitable and sustainable

 

[StereoVsn]

But aren't contract workers a negative? I read that on here. Isn't it the cause of the mediocre releases we have seen?

I dont wanna see anyone lose their jobs but maybe cutting contract workers would be a benefit in the long run?

Different contract workers. The issue with contract work at MS is that they cycle internally direct contract workers every 18 months (company policy so they don't have to pay benefits) which results in obvious churn, doesn't retain institutional knowledge and basically creates a situation where long term dev projects suffer.

This case is MS (and most others) having contracts for help on certain aspects of games (maybe networking, maybe art assets, etc) but it's more cohesive since it's usually longer term commitment or could be even most work on a particular title.

So MS is canceling whole bunch of this external collab work in additional to internal resulting in probably thousands more of layoffs in the industry.

 

[Hollywood Hitman]

Jfc always gotta be a boogeyman lol I could litrelly sit here googling mass layoffs dating back years and years and years, it's the cycle of life in corporate worlds. It sucks to see sure absolutely but like every year, the games come out, always good shit to play... They always need to trim the fat so to speak.

 

[poppabk]

We need to have MS officially going 3rd party, in order to officially declare open season for a new competitor to show up. No one wants to come 4th place behind Xbox, so Xbox need to go first before we can get new blood.

People need to give up on this idea. No-one else is create a new console.

Unless you mean crap like this - in which case enjoy, your playstation rival already exists.

 

[Flabagast]

No studio should trust Microsoft anymore

 

[Baemono]

Does that mean Phil is secretly being let go ?

 

[DenchDeckard]

Different contract workers. The issue with contract work at MS is that they cycle internally direct contract workers every 18 months (company policy so they don't have to pay benefits) which results in obvious churn, doesn't retain institutional knowledge and basically creates a situation where long term dev projects suffer.

This case is MS (and most others) having contracts for help on certain aspects of games (maybe networking, maybe art assets, etc) but it's more cohesive since it's usually longer term commitment or could be even most work on a particular title.

So MS is canceling whole bunch of this external collab work in additional to internal resulting in probably thousands more of layoffs in the industry.

Jesus. Thanks for the explanation. Phil has to go at this point.

 

[Horseganador]

It is not known exactly how far the disaster that Xbox has caused with so many layoffs has reached.

 

[Punished Miku]

Its fine. Valve will probably hire them for contract work, right?

 

[diffusionx]

Different contract workers. The issue with contract work at MS is that they cycle internally direct contract workers every 18 months (company policy so they don't have to pay benefits) which results in obvious churn, doesn't retain institutional knowledge and basically creates a situation where long term dev projects suffer.

This case is MS (and most others) having contracts for help on certain aspects of games (maybe networking, maybe art assets, etc) but it's more cohesive since it's usually longer term commitment or could be even most work on a particular title.

So MS is canceling whole bunch of this external collab work in additional to internal resulting in probably thousands more of layoffs in the industry.

Also seems that, although a lot of people blamed this contract work policy for Halo Shitfinite, nothing has changed. If anyhting stuff like moving to UE5 is likely done with that policy in mind. Not to mention Microsoft firing Americans and trying to replace them with H1Bs.

The point is this company is a mess, they have no interest in making great games, and one shouldn't place hope in ANY games they have coming out.

 

[poppabk]

lol you're right this whole thread is based off a video from a Youtube channel with 46 subs and has 79 views in one day

Its negative MS news, thats so hot right now.

 

[Sephimoth]

Where's the...

 

[StereoVsn]

Also seems that, although a lot of people blamed this contract work policy for Halo Shitfinite, nothing has changed. If anyhting stuff like moving to UE5 is likely done with that policy in mind. Not to mention Microsoft firing Americans and trying to replace them with H1Bs.

The point is this company is a mess, they have no interest in making great games, and one shouldn't place hope in ANY games they have coming out.

Yep, and the policy around contractors and H1B is coming from Satya.

 

[adamsapple]

lol you're right this whole thread is based off a video from a Youtube channel with 46 subs and has 79 views in one day

 

[neocycle]

No thats just what you want.

They are launching a new console gen and you just have to deal with that.

No one will buy it except for some Americans.

 

[digoutyoursoul]

No one will buy it except for some Americans.

Excuse me, the three of us England folk will buy it too

(If it's good of course)

 

[Steve Holt]

Microsoft at this point couldn't give a shit about our hobby.

Buying studios and shuttering them despite being one of the most profitable companies in the world is ridiculous.

Anyone who stans for this... why?

 

[simpatico]

It's being reported that the gaming industry across Europe is in panic, as studios that either had deals with Xbox or were part of outsourcing teams helping on larger Xbox projects are now having to suddenly adapt to losing a great deal of work and funding.

This comes from Ireland-based journalist Lex Luddy, who explained what she had heard from sources across Europe on the Rewinder podcast.

A studio like Iron Galaxy being in trouble is ironic because they exist to weaken labor in the industry. They're a temp farm. If we've reached the point that we're crying over their misfortune, things are very bleak. They were founded to facilitate publishers outsourcing, rather than having to keep their in-house studios fully staffed and insured. In a proper time, the workers in the games industry would have pushed these guys out before they got their second gig. The pubs could never have got this far in their scumbaggery without firms like Iron Galaxy.