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Xbox Boss Phil Spencer Addresses Studio Closures: "I have to run a bussiness"

It's not about making games for MS, it's about making money and seeing the ROI.

Making games is just one of the means to that end.

Gamepass is another.

Publishing on every platform is another.

Hardware is another.

Sheesh, when will it be clear that MS is NOT a videogame company, and they do not care how gamers feel.

Yes, they own some of the best video game IP.

If it don't make dollars, it don't make sense.
 

gatti-man

Member
It's not about making games for MS, it's about making money and seeing the ROI.

Making games is just one of the means to that end.

Gamepass is another.

Publishing on every platform is another.

Hardware is another.

Sheesh, when will it be clear that MS is NOT a videogame company, and they do not care how gamers feel.

Yes, they own some of the best video game IP.

If it don't make dollars, it don't make sense.
So none of their brand makes sense then. These arguments don’t make sense. The whole it’s a business argument is a smoke screen for bad decisions. If Xbox as a whole was run this way the brand wouldn’t even exist.
 

clarky

Gold Member
So then why is Xbox still around? The 360 had 2 good year beyond that the brand has consistently been under performing and burning cash. Gen 3&4 have been absolute disasters
i'll quote myself and GHG from earlier in the thread seen as you can't be arsed reading it.

In that case, how is Xbox still around then?

Plot twist: It isn't. We all know they are killing it off.
 
So none of their brand makes sense then. These arguments don’t make sense. The whole it’s a business argument is a smoke screen for bad decisions. If Xbox as a whole was run this way the brand wouldn’t even exist.

They're aren't arguments, they're facts.

Profit is a Major Driver: Microsoft is a business, and like any business, making money is a primary objective. Xbox is a division within Microsoft, and its success is measured by financial performance.

Multiple Revenue Streams: Xbox generates revenue through various means, including game sales, subscriptions like Game Pass, hardware sales (consoles, controllers, etc.), and potentially publishing deals with other developers.

Focus on ROI (Return on Investment): Microsoft will invest in projects with the potential for a good return. This applies to game development, service features, and hardware decisions. Those projects that don't fit the bill, get cut, hence Arkane Austin, etc.

Sure, games are central to the Xbox brand but don't think for a second that they care if gamers are mad about their decisions, especially if they took a loss.

I never said they make good decisions.
 

Radical_3d

Member
They're aren't arguments, they're facts.

Profit is a Major Driver: Microsoft is a business, and like any business, making money is a primary objective. Xbox is a division within Microsoft, and its success is measured by financial performance.

Multiple Revenue Streams: Xbox generates revenue through various means, including game sales, subscriptions like Game Pass, hardware sales (consoles, controllers, etc.), and potentially publishing deals with other developers.

Focus on ROI (Return on Investment): Microsoft will invest in projects with the potential for a good return. This applies to game development, service features, and hardware decisions. Those projects that don't fit the bill, get cut, hence Arkane Austin, etc.

Sure, games are central to the Xbox brand but don't think for a second that they care if gamers are mad about their decisions, especially if they took a loss.

I never said they make good decisions.
This is the same western mentality of business that has ruined Sony as well.
 

Radical_3d

Member
You're correct, sir.

The only one who undestand their value proposition is Nintendo.
That those greedy fucks of Nintendo are the last bastion of traditional gaming depresses me to no end. But I can’t complain since I’ve voted with my wallet for the today’s Sony and XBox. Getting angry on GAF solves nothing. We should start sending a message buying Nintendo stuff. Instead of that I’m going to buy a PS5Pro because I’m trash.
 

bender

What time is it?
That those greedy fucks of Nintendo are the last bastion of traditional gaming depresses me to no end. But I can’t complain since I’ve voted with my wallet for the today’s Sony and XBox. Getting angry on GAF solves nothing. We should start sending a message buying Nintendo stuff. Instead of that I’m going to buy a PS5Pro because I’m trash.
200.gif
 

Cyberpunkd

Member
Well, yeah. That's his job and you can't run a company based on feelings.
What irks me in this response are two things:

1. There is no way he didn’t know this question will come up, I’m sure IGN was required to send all the questions for pre-approval
2. “I have a business to run” screams passive aggressive and not professional, it’s a very defensive response. Ok, you have a business to run - run it better. You have the financial resources of one of the largest companies in the world, current market cap 3 trillion USD. It’s obvious from recent acquisitions he has the support of Microsoft top management, you don’t release ABK funds based on feelings. You were at this job for 10 years now, there is no excuse for how poorly that was handled.
 

Killjoy-NL

Gold Member
What irks me in this response are two things:

1. There is no way he didn’t know this question will come up, I’m sure IGN was required to send all the questions for pre-approval
2. “I have a business to run” screams passive aggressive and not professional, it’s a very defensive response. Ok, you have a business to run - run it better. You have the financial resources of one of the largest companies in the world, current market cap 3 trillion USD. It’s obvious from recent acquisitions he has the support of Microsoft top management, you don’t release ABK funds based on feelings. You were at this job for 10 years now, there is no excuse for how poorly that was handled.
You're not wrong, but neither is he.

At the end of the day, it is business and Xbox isn't doing well at all.
So likely studios like Tango didn't meet expectations.
 

Embearded

Member
It's true, they have to run a business and if it made sense from a business point of view then they made the right choice.

The problems with these suits start when they act like they are running the business not for profit but to keep us satisfied, like we are friends. They make fanboys believe their opinion has substance when it doesn't.
I would much rather prefer it if they were straight from the beginning and in the end if they had the balls to say "look, you spend billions annually on shitty GaaS games and subscriptions, of course we 'll be chasing that and try to take more of your money, we are here because of you".
 

demonstr8

Banned
That those greedy fucks of Nintendo are the last bastion of traditional gaming depresses me to no end. But I can’t complain since I’ve voted with my wallet for the today’s Sony and XBox. Getting angry on GAF solves nothing. We should start sending a message buying Nintendo stuff. Instead of that I’m going to buy a PS5Pro because I’m trash.
You didn't articulate it very well but I am mostly in agreement with you and feel almost the same way - no matter what consumers like you and I want it doesn't matter because our voices aren't loud enough or aren't on the trend so ultimately shikata ga nai.
 

Red5

Member
Arkane Austin were dealt a bad deal with designing a GAAS title when they specialize in Immersive sims, I can see why they would close it down if they had to choose a studio.

But why close down Tango when they gave you a hit?
 

H-I-M

Member
A whole lot of BS.
Hifi Rush was a critical AND (according to themselves) a commercial success.
His answer won't reassure the Xbox base nor the Xbox studios cause it's still not clear as to how they make those decisions.
 

StueyDuck

Member
I'm wondering if 70billion dollars spent on Activision would have been enough to keep tango afloat.

I'm sure they could've just skimmed by 🤣
 
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Shutting studios but also has lots of leeway to run the business how they want to in response to the $70 billion acquiisition. If he has that kind of access to funds why is he closing down studios? It doesn't make sense.

How this guy is still in charge of running Xbox I will never know.

It's actually pretty simple. They are pulling thier profits from Azure to make the aquisitions in the hope that they will be a good investment. The choices they have make in studio closures is still stupid though. It's almost like he picked two names out of a hat.
 

Shocked Uh Oh GIF
Lies Liar GIF


Edit: to clarify, I know this is an old article, it just sounds like they said some bullshit back then given what happened later.
A year is a really long time, especially in videogames. And we know hardly anyone was left at the studio anyway. They keep studios funded and going based on what they’re working on in the future. Not what they used to do. What happened was extremely predictable and shouldn’t have come as a shock to anyone.
 
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Doom85

Member
A year is a really long time, especially in videogames. And we know hardly anyone was left at the studio anyway. They keep studios funded and going based on what they’re working on in the future. Not what they used to do. What happened was extremely predictable and shouldn’t have come as a shock to anyone.

Sure Jan GIF


But hey, you were right, it was extremely predictable…..as in extremely predictable that Phil and co. would pull this shit and then also not keep their mouths shut about it but just dig themselves in deeper.

Also, maybe actually read the article I listed. Matt Booty said Xbox themselves should be held accountable for how they handled Arkane (so you know, I’m just doing what he asked), and he wants to support them to keep working to deliver the game they promised.

Which is what they were doing: https://www.pcgamer.com/games/fps/r...fore-microsoft-closed-arkane-austin-for-good/

Oh, hmm……

case closed eddie GIF
 

SHA

Member
Why is 343i still up if that's the case...
I think it's a matter of preference like he just didn't like seeing a b-rated resident evil game as well as a b-rated devil may cry as for the other game he canceled awhile ago, he just ain't going in that rabbit hole anymore.
 
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