'It's Going To Be Pretty Brutal' - Jason Schreier Reveals More On Upcoming Xbox Layoffs
We're still waiting to hear more news on the reported layoffs taking place at Xbox soon, with multiple studios such as Compulsion Games, Double Fine and Ninja Theory potentially set to be affected, and well-regarded Bloomberg reporter Jason Schreier has taken to YouTube today to share an update.
You can watch the video in full above, where Schreier recaps some of the more challenging times in Xbox's past and how they've led to present-day problems, before finishing off by discussing the "pretty brutal" situation ahead.
Here are some excerpts from it:
"As I reported on Bloomberg last week, massive layoffs are coming to Xbox at the end of Microsoft's fiscal year on June 30th. And as I reported on Bloomberg this week, studios such as Compulsion (the maker of South of Midnight) and Double Fine (the maker of Kiln and Keeper) and Ninja Theory (the maker of Hellblade) are all currently in negotiations with Xbox to figure out what's next because all of them are on the chopping block. And those are just the three that I've confirmed so far. I know that there are other studios in trouble. I know that layoffs are about to hit the entire organisation in a huge way."
"What's happening is going to be pretty brutal. The word "bloodbath" has been thrown around among people that I talk to who know what's happening. It's going to be bad."
"As I reported on Bloomberg last week, massive layoffs are coming to Xbox at the end of Microsoft's fiscal year on June 30th. And as I reported on Bloomberg this week, studios such as Compulsion (the maker of South of Midnight) and Double Fine (the maker of Kiln and Keeper) and Ninja Theory (the maker of Hellblade) are all currently in negotiations with Xbox to figure out what's next because all of them are on the chopping block. And those are just the three that I've confirmed so far. I know that there are other studios in trouble. I know that layoffs are about to hit the entire organisation in a huge way."
"What's happening is going to be pretty brutal. The word "bloodbath" has been thrown around among people that I talk to who know what's happening. It's going to be bad."
Schreier goes on to clarify that it's not "entirely true" to say that any studios are being shut down by Xbox, as they're all in negotiations right now - potentially about spinning off or finding other buyers.
He also claims that "uncertainty" has caused issues inside of Xbox Game Studios over the past decade, suggesting it's "very hard to make great art when you are working under fear of layoffs and turbulence and shutdowns".
Of course, keep in mind that all of this is just coming from a single journalist, but Schreier is known for being a reliable name in the industry, so we're inclined to believe him. More details on the situation should continue to roll out soon.
[source youtube.com]
Remember when the word BLOODBATH was thrown around... In internal MS emails regarding what would happen regarding layoffs if they purchased ABK and it didn't go well? The ones we saw from discovery during the FTC trial?
Yeah, I memba.
Edit to add a quote from the email, march 19 2021 to Phil Spencer from Jean Emilie-Elien:
I’m just super worried about the moat you’ve built, that the winds will change and we have a bloodbath a few years down the road.
I’m just super worried about the moat you’ve built, that the winds will change and we have a bloodbath a few years down the road.
The winds did indeed change
In response Phil blew her off saying MS never closed a studio over P&L. Lol.
I have come to believe that XBox is in a death spiral and that there is no saving it. If there is any hope, MS's greedy insistence on infinite growth and giant profit margins will certainly kill that hope. At this point my only hope is that Game Pass lasts long enough for me to complete my 2.5 year stack.
Just when I thought the XBOX brand was coming back with a more focused attitude, and getting players involved in the ecosystem again, they always manage to have negative impacts weekly. I understand Asha said that things are going to be rough, and tons of changes/sacrifices are going to be made, but this is still incredibly brutal. I wish XBOX the best, but I don’t think they know what they are doing or even should be doing. They are throwing crap to the wall and hoping it sticks.
Just watched the Schreier video and it’s inconceivable how bad things actually are. The house has burnt down and now the rubble is on fire. It’s disgusting that the hard working low level employee grunts are the ones feeling the heat while the myopic, incompetent C-suite is the cause of all this misery and they’re wallowing in gold like Scrooge McDuck.
While I don't game on PlayStation outside of my retro collection looking across the landscape this run of closures isn't just home to Xbox. The entire industry is buckling under its own weight, drowning in the hubris of its directors and their years of insatiable greed and if it continues we might yet see another crash.
However, as I've said elsewhere perhaps it's for the best long term. The games industry clearly cannot continue on its current trajectory if it's to survive.
I watched his video this morning, and it was both very depressing and a breath of fresh air. Not nonsense fan fiction.
Like I said, "hold onto your butts."
I think at some point it’s better to wait for official announcements rather than spreading rumors or speculation. There will probably be changes, but what they are and to what extent — nobody knows.
What’s certain is that we’re hearing a lot of nonsense right now, and it would be good for Xbox to speak up soon and tell us what’s really going on. But if they haven’t said anything yet, it’s because nothing is finalized at the moment, and in reality these rumors are based on speculation without any real foundation.
@fatpunkslim I agree, until Microsoft says so nothing of this is happening. They're the only ones who can take those decisions.
Painful to listen to. (FYI most of the video is history, the recent bit is at the end) Jason doesn't report on things without speaking to and verifying with multiple sources, so I believe him.
I don’t think some realise how many employees and studios XBOX have.
And just like Sony, Ubisoft and XBOX it’s a business and if money isn’t being returned on investment the inevitable is going to happen.
This won’t be last in the industry this year and it won’t all be XBOX.
@AI-Generation Yes they will be but it wont be as insane as this.
Sharma and her team have told us this is a reset. XBOX by the end of July will be unrecognisable.
If you hated Xbox before lol then my word strap in.
That's a pretty rough listen and not just the current news. The general breakdown of the entire history since the 360 era has been a rough ride.
The studio that Xbox has closed so far is one of the two studios of Arkane. The Initiative, too and rightly, after 7 years of doing nothing until Crystal Dynamics came to their rescue. Krafton collaborated with Xbox and ZeniMax to ensure a smooth transition and maintain continuity at Tango. Not my words but theirs. Tango was their most noticeable loss and the studio that developed The Evil Within, Ghostwire Tokyo and Hi-Fi Rush.
I knew that the development times were crazy for short single-player games in the case of Ninja Theory, Compulsion Games and Double Fine, that are reportedly in negotiations with Xbox to avoid closure. Let's wait for official statements and see what happens with these and other studios. They are not closed yet.
This trend will continue in one way or another according to Sylvain Trinel, but not just at Xbox, but also at Sony after having closed Manchester Studio, Japan Studio, Pixel Opus, London Studio, Firewalk Studio, Neon Koi, Bluepoint and Dark Outlaw already and since PS5 launched.
@ilyn I think thats why am happy to bow out. It feels the company that only has a general plan is Nintendo and its not what their doing in games thats makes me think that lol.
Am even selling my Pro when I come back from my families wedding. If Xbox dies..... might be time to finally try fishing 🤣🤣
@RBRTMNZ Ever since the “only 4 games were announced” the brand is facing an unstoppable spiral of death, many of us warned it the day it was confirmed and we were called other brand’s fanboys, and now that reality is setting in the ones who defended and excused this multiplatform pivot now prefer turning deaf ears and blind eyes to all this situation until it’s “confirmed”.
We don’t need MS execs to confirm this will be the biggest cuts Xbox has ever seen, it’s painfully obvious this is a make or break moment for Xbox overall, and I insist, it didn’t have to be this way if only they sticked to one plan across the entire generation instead of pivoting time and time again, and no one should’ve defended Xbox giving up exclusives to the point of releasing Halo, Gears and Forza on PlayStation, that’s to me the pivotal moment Xbox lost its way and yet many here defended it avidly.
Remember, above anything else. THIS is how the Phil Spencer era ends. Crumbling under its own weight, incompetently stumbling around and beating itself up at every corner.
I don't think he deserves the "savior" title. You can say he helped give Xbox a second wind during the Xbone generation, sure, but then he promptly guided that into an industrial meat grinder.
Bravo.
Asha needs to be let go as well. Her someone who won’t let games place ads or who wants to turn Xbox into a subscription only with on hardware.
@Elbow The hands-off approach didn't work with some of the studios as he expected their creativity to succeed on Game Pass, the Xbox store and other consoles, even. I know he played and beat Keeper, for instance. He was also a fan of some third-party indies. Contrarily to that strategy, Asha would rather invest in studios and games that people are really playing and buying and will drop the romantic but inefficient hands-off strategy. Like I said on other threads, I'd love to see old IPs and new ideas but not with disproportionate budgets/development time.
Seems Phil lost his grip and created a monster nobody can fix. It’s bad enough you have nadella as the ceo who wants to keep his bonus and million dollar paycheck. He will do whatever it takes not have to deal with Xbox.
@McKeownPlayz
All this "I'm giving up gaming if x, y, z happens" is just silly talk.
Irrespective of where the industry heads and what happens there are literally thousands upon thousands of games to explore and enjoy. I'm quite sure you've not played them all. In fact I'm willing to bet there's entire genres you've not explored and that might surprise you.
Nothing wrong with fishing and playing video games.
I mean it's ALREADY been a bloodbath. Xbox have already had 5 major rounds of layoffs in the last few years with over 4,000 confirmed job losses, and that doesn't include several where no official figure was given. In reality it's many more. Data: here
@McKeownPlayz not sure about unrecognisable… have you seen the state Xbox been in the last 6 years? It’s a poop show with no clear direction. This play everywhere, this is a Xbox move was nonsense making supporters feel betrayed or stranded after giving years and thousands into the ecosystem.
@McKeownPlayz
Don’t need to hate, it’s just business realignment.
Being brutally honest I don’t have a series x for those studios games.
I have my FH6 and soon Halo and then gears e day then Fable.
@Banjo- what is it, did they only close 1 or not? They closed Arkane Austin, The Initiative, Tango Gameworks (just because Krafton revived it doesn't mean Microsoft didn't close it, see https://www.gamedeveloper.com/business/tango-gameworks-developer-documents-the-studio-s-final-day), Roundhouse Studios (co-developed Red Fall) and Alpha Dog Studios (mobile-only developer). So let's be honest, they definitely closed more than one studio, no need to sugarcoat it.
@AI-Generation No No mate that wasnt a dig saying you hate Xbox lol I meant in the general consensis
@themightyant that's what it means to be part of a big tech company. I heavily doubt this round of layoffs is the last one, I expect the next one in June 2027.
@TheSimulator Like I said Strap In mate. Jason is right. Like the end of Halo, all they can hear is dust and echoes.
@Elbow I don't think it's so black and white. Until they bought ABK Xbox were making decent profit margins (around 12%) and were heading in the right direction. But Satya and Amy Hood spearheaded the ABK acquisition, and with it around 12,500 more staff that completely upset that balance.
They were hoping Game Pass subscribers would go through the roof, but they didn't, instead they effectively lost money with COD on Game Pass and ABK had little else to add to the service Day 1. Since then it's mostly been a ***** show.
I would put more at the feet of Nadella and Hood than Spencer, though of course he is in part to blame.
"You either die a hero or live long enough to see yourself become the villain"
@tho_mi Not sugarcoating. On the contrary, giving some perspective. Allow me to explain and read well. They have over 40 studios. This is not a problem that only affects Xbox. Just look at how many Sony has closed since PS5 launched, not to mention other big publishers. Pretending that only Xbox has closed studios is distorting the reality. This is the state this industry is now, if it was a Microsoft's problem, it would only happen to Xbox.
You are right about the mobile studio and the co-developer of Red Fall. Those were closed, too.
@themightyant Out of curiosity do you believe that Amy and Satya recognise what they have done hence bringing Sharmer and her team in and if they lose Xbox completely, its the last real consumer product they have with any worth ??
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So this is the great Asha Sharma huh? Where's all her kiss ass fans now? Oh she's fixing Xbox, all hail Sharma. So why is she letting this.happen? Maybe she should take a price cut or quit her job to save money, shes not doing anything anyway.
@McKeownPlayz I honestly don't know if they recognise what they have done, it's far easier to attribute blame. But I am certain they realise how bad the situation is and bought Asha in specifically to shake things up and try and turn it around, giving her far more of a wide remit than Spencer had at the end.
It's a smart move, and she's doing a solid job so far, but the real challenge is still to come. I'd love to see her turn it around, but the odds are against her, and I am worried about what Xbox will be when it's all done. Fingers firmly crossed.
@McKeownPlayz
That’s cool, next month it will be Sonys turn, they already done bluepoint and others will follow. I’m waiting for something to happen at Bungie next.
@AI-Generation Sadly that's the truth, there will be more job cuts just about everywhere.
But the reality is PlayStation isn't in the same weak financial position as Xbox right now, where the CEO of Microsoft is coming out and publicly stating it can't go on like this, that things have to change and they have to find a way to make it profitable. The cuts here will sadly be far worse.
@themightyant
The discourse during the ABK acquisition looks pretty darn silly now, it has to be said.
One of the worst acquisitions in this industry's history? Quite possibly.
To quote a favourite show of mine:
"A war hasn't been fought this badly since Olaf the Hairy, High Chief of all the Vikings, accidentally ordered 80,000 battle helmets with the horns on the inside"
@themightyant
Sony seem in a lot better position in the gaming division, which might even be holding up the rest of Sony, remembering the TCL TV etc 51% buyout.
It’s Bungie that will lose some employees soon, they are massive with about 850 employees and what have they done for Sony.
@NishimaruX I got ripped apart here for being against the ABK deal. Got called a Sony fanboy and all sorts of other nonsense simply because I was against mass consolidation.
Maybe because I am a little bit older, but these things rarely end well and lead to a lot of job losses. As the quote @Jenkinss put at the top of the thread from a leaked Xbox email to Phil Spencer
I’m just super worried about the moat you’ve built, that the winds will change and we have a bloodbath a few years down the road.
I’m just super worried about the moat you’ve built, that the winds will change and we have a bloodbath a few years down the road.
That was lamentably prophetic. Sad times.
@AI-Generation I honestly don't know what Sony will do with Bungie, it was a bad buy, we all said it at the time. Felt like desperation as Xbox was signing up all the FPS studios (id, Activision, Machine Games etc.)
CERTAINLY wasn't worth what they paid for them, much like ABK. A silly moment in gaming history where due to gaming's surge during COVID investment was at an all time high and execs were just spending willy nilly. Madness.
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@themightyant I’d like to see Sony give them a chance to make a single player shooting game. But I doubt they will do.
Phil walked away right before the "bloodbath."
@themightyant
I don't think it's so black and white. Until they bought ABK Xbox were making decent profit margins (around 12%) and were heading in the right direction. But Satya and Amy Hood spearheaded the ABK acquisition, and with it around 12,500 more staff that completely upset that balance.
I don't think it's so black and white. Until they bought ABK Xbox were making decent profit margins (around 12%) and were heading in the right direction. But Satya and Amy Hood spearheaded the ABK acquisition, and with it around 12,500 more staff that completely upset that balance.
I honestly don't think the ABK acquisition was what did them in, in fact, I think it's the only thing that kept Xbox from becoming insolvent the last two years.
It was a perfect storm of hell, it hit many others too but Xbox felt it the most because it was going through very aggressive growth. There was some mismanagement, for sure, but:
There is a lot more, but I honestly think if they didn't own ABK, Xbox would have likely been considered insolvent by Christmas 2025.
Personally, I think it was GP price hike that doomed Xbox in a way that can't be reversed without this drastic reset.
@PsBoxSwitchOwner I don't think they will close them, there's too much talent there to do that. But they do need to restructure them.
I'd also love to see Bungie work on a single player FPS but do they want to? If staff aren't happy they will leave, and not put in 110%. It isn't just up to Sony or they will lose much of their staff.
@MinervaX76 Absolutely agree with this
Modern gamin mg industry is unsustainable.
Microsoft bought too many studios that have made games nobody cares about. This was inevitable.
@Banjo-
They already explained that the 3% is because of some studios bleeding money, but some others are making a fortune. If Xbox is doomed that only would affect Xbox users, and they are not as worried.
They already explained that the 3% is because of some studios bleeding money, but some others are making a fortune. If Xbox is doomed that only would affect Xbox users, and they are not as worried.
Yea, and its precisely some service games [Sea of Thieves, FO76, and most of ABK] that are the biggest earners. Plus, games many core gamers consider "niche" like Flight Sim and Age of Empires.
It is precisely the small studios Xbox was trying to grow (and new home-grown ones) that were/are sinking MS. And honestly: they would have been "alright" had GP not been nearly murdered by the 50% price hike.
@themightyant
I didn't engage during that period, i just watched from the sidelines.
The celebration from the community that it was going to be the deal of all deals and crown Microsoft as king in the console arena is embarrassing to recollect now given where it has actually ended up.
Still, one must always laugh at such things less you spend your days in misery.
On a side note, you mentioned Cyberpunk earlier on. How you getting in with it? It's one of my favourite games of its type. You can almost smell the dystopia.
@Banjo- got a link to where they say they are making a fortune? Just interested to see how it fits with the CEO saying its unsustainable.
@MinervaX76 you can add more to the list with things like 100m GP subscribers by 2030 (even though subscription had levelled off.
Trying to charge $80 for games … and especially a more niche title.
Or expecting redfall to be double digits higher.
The Execs are just out of touch of what is realistic, and they are finding out that their consumers are pushing back and what their limits are.
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@MinervaX76 Yes, basically because he believed that creative ideas developed without external pressure would result in higher engagement on Game Pass and more sales on Xbox and other consoles. However, not many people played those games. I did, on Game Pass. I think that those games wouldn't have bled the rest of the studios' revenue if they had more reasonable budgets/development time. The idea was not that bad, but combine huge expenses with small games with little impact on the market and the result is that they bring their huge revenue down massively to just 3% (unsustainable).
EDIT: Actually, she said that the 3% didn't include ABK, profitability would look better counting that.
@MinervaX76 I agree it's much more nuanced, and agree with many of your points but disagree with "Xbox would have likely been considered insolvent by Christmas 2025". The financials I saw that Microsoft released don't seem to support that.
But Microsoft are irritatingly cagey about all their financial data and almost never show the same metrics quarter to quarter or year on year so you can't track how they are doing, we are limited the few scraps they are willing to share with to show us. (Incidentally I made a ranty post about this a few days ago here, I won't repeat it all)
I agree some of this is of their making, and some is circumstantial - wars, cost of living crisis, AI etc. etc. are outside their control. But as a company you can position yourself to deal with downs far better, and by buying ABK they exposed themselves. They made a huge gamble that it would lead to millions of Game Pass subscribers, that was the math they were planning around (we've seen the leaked emails from ABK and targeting 100 million subs) instead we are seeing the result of what happens when that gamble doesn't pay off - mass layoffs.
I'd love to stay and debate gaming all night (I REALLY would!) but I have to go munch some dinner and get to my mate's football party. Later.
@NishimaruX (before I go) Haven't played Cyberpunk yet, really struggle to start 100+ hour games (at least how I play them) it's top of the list, along with Elden Ring as soon as I make some time, especially with work... and stop commenting here so much!
Have a good evening.
@themightyant
Well enjoy it when you do find the time!
Yes, have a pleasant evening. I'm about to jump back into KCD 2.
@themightyant enjoy the football my man!
@Banjo- Arkane Lyon released a well reviewed game this gen that sold well enough for a new ip. Vs compulsion and ninja theory who both released decent games that took 6+ years to make that were too short.
@Fishmasterflex96 I didn't say anything about Arkane Lyon. I agree, Ninja Theory, Compulsion Games and also Double Fine had disproportionate development time for very short and linear games. Even worse, their games underperformed.
Uncle Phil saying Xbox has never closed a studio due to profit/loss aged like milk 🤯
@Banjo- my bad. Thought you were saying that Arkane Lyon should be shut down. I see now you are talking Austin.
@Fishmasterflex96 No problem.
Honestly, this all really sucks but even listening to the video, Xbox has grown way too big and unmanageable. (And they have themselves to blame)
So they have to make big cuts to right the ship. I hope all of these studios survive, but in the end it may be what saves Xbox.
If they can become a more lean entity, they can focus on making games like Halo and FH that will be profitable. FH 6 made over $6 million in its first month and half of that was still Xbox sales.
While I hope things work out for the studios and employees affected, maybe the future of Xbox can have a better outlook and change the tide.
@awp69 Yep, also the majority of the sales of Forza Horizon 5 were on Xbox consoles and not on PC as I thought that could be the case.
@PsBoxSwitchOwner @themightyant @IllusiveMan I am really interested what happens to Game Pass model.
All M&A started with the goal of having so many studios to have a constant flow of games into the GP produced by 1st party. I suppose its cheaper and provide more control then buying off 3rd party into game pass every time. This is not a new model - netflix and others do the same.
Now if we look at 2025 - we had 8-10 1st party games vs 2022 when it was only pentiment. So yeah the goal was achivied - now lets double down on GP? No, we are going to double the price, then cut a little and remove COD.
Right now I am seeing all these smaller studious that produced niche games to fill in the GP are being cut. So I guess we are moving from producing 8+ games back to 3-4 big hits per year - basically a sony model. Thats fine but then are you happy with GP eating forza 6 or gears e-day sales? I am not sure they are.
I think GP needs to be completely restructured:
1) GPU to be fully removed. GP premium (without day 1) is the main tier now.
2) GPU slowly starts losing day 1. First COD, then TES 6, then to studious like machine games and so on. It becomes "case by case day 1 games".
3) GPU increases in price again but without COD. So to the point where its worse than after $30 announcement.
4) PC GP likely to be cut. Its too good to be true
@themightyant I see your point, but I do think Phil has a huge share of blame fairly deserved. As others, like @Banjo- , have said, he was way too hands off. The last few years were not solely his fault, I agree with that, but he lead so much of the way to where things ended up. Hands off to development teams that really weren't proven (Compulsion), picking some niche within a niche things to go for like Hellblade 2 and Keeper, Kiln, etc. Also shrugging off fan requests for things like Banjo-Kazooie to return by saying "Rare doesn't want to make that" and happily letting them flounder for half a decade on Everwild. They don't even know what they want to make!
He's not blameless but he certainly is 75% of the problem. Compounded by Sarah Bond's awful shift in business didn't help either, but he's done far more harm than good.
He ultimately signed off on Redfall being Xbox's first $70 game. He was fine with the Avowed devs getting in spats with players. I guess it's better to say this is more a "death by a thousand cuts" situation, but the only thing Phil really did well was PR and speaking candidly on issues.
(Edit: day late edit, I fixed @Banjo- 's name, I don't know how I got that wrong sorry ;_; )
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@Millionski I’m also interested in what happens to Game Pass. I still think the numbers can work, but not when they bought ABK. Too many mouths to feed.
I suspect a large part of the XBOX RESET will be making the numbers work. And if they don’t Game Pass will slowly be gutted or shuttered.
In fact we will know if Xbox still believes the model is sustainable by their actions. So watch this space!
It’s happening to all in some places in the UK
BBC announces 550 job cuts as first part of £500m savings plan
@themightyant Not a chance GamePass is staying.
@McKeownPlayz
As I said prior, too many Xbox users are deeply reliant and attached to Game Pass. Even if Microsoft were to move away from hardware before or after Helix i believe GP would remain in app form across various avenues.
During the Switch 1 era I was a Nintendo person. Didn’t like where 2 was heading (still not sure tbh!) grabbed an Xbox instead.
In the switch 1 people commonly cheered for Nintendo to buy “x company” (Mercury Steam for instance.) It seems now that a lot of that conversation was influenced by Xbox, and now it seems like buying studios is more or less a rough proposition
@McKeownPlayz the biggest test to GP is when people can no longer stack it. Even the die hards aren’t paying full price.
The casuals balked at $30 and it lost millions of subs.
@MrStark
While I agree that an industry wide reset is needed for the long term future of this industry I don't believe Xbox hardware will be a part of that future.
Microsoft as a key player in gaming software with GP as a driving force is more likely, but hardware? Nope.
Helix will price out the average consumer and will flop and Nedella will pull the plug.
To look at it positive Microsoft as solely a publisher means more games for my PC from studios I like.
Phil Spencer truly hurt Xbox. The chase of game pass hurt Xbox greatly. Never ending race too the bottom with devaluing games. Also how does Matt booty still have a job, but also got promoted??? Dude was there managing the studios that were given the rope to bang themselves with and got promoted cause of it. Halo infinite was in development hell and yet more studios got put under his watch on top of problems with the initiative, undead labs, rare, etc. Xbox is being ran into the ground.
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The Abk deal had nothing to do with these potential closures and their closures would probably be old old news if if they hadnt been purchased by xbox. Its industry wide. Consolidation is certainly not the problem. Spending the better part of a decade producing an unprofitable product is to blame.
@MrStark
I don't think people will be in for a shock regarding the price. By Microsoft's own admission Helix will come with a premium price tag, which as a PC/console hybrid, is looking to be at the very least £1000. That's the brunt of consumers out of the picture straight off the bat, certainly in the current financial climate where many are struggling to pay even their energy bills.
A game console's primary goal, as has always been the case, is to offer next generation gaming, albeit with a few caveats, at an affordable price for all.
Helix will not qualify and as such its lack of mass market appeal will see it become a commercial failure.
Helix will flop and Nedella will pull the plug, consigning Xbox to the Microsoft graveyard along with MS phone and Zune.
The only shock in this scenario will be coming from the Xbox loyalists who can't see the wood for the trees.
Once I hear it from Microsoft/Xbox or the devs then I'll GAF and believe it.
@MrStark
But logic and consumer buying habits dictates it won't be.
Just answer me a question, and please be honest.
Do you think the average consumer, in particular those with families, the brunt of console buyers, are suddenly going to stump up £1000 or more for a toy, a toy that has traditionally been well within their budget, but is now demanding they pay a premium price for and pretty much for the same experience?
Also, factor in that the current economic crisis has seen millions of potential customers tightening their purse strings with no sign of their financial situation improving any time soon.
I’m more concerned about what this means as a working class person. People devote years of their lives to these companies, often with poor pay (in comparison to cost of living in their area), and debt from getting a degree and it can just get swept away like nothing. Jobs numbers are in the dumpster and for some, working 3-4 minimum wage jobs still won’t knit a check large enough for them to crawl out. Then you can’t save for retirement or emergencies on top of that. What do you do with that?
@MrStark
Hopefully, you’re still around with this “energy” when ]Project Helix is announced as well the exclusives
Never said it wouldn't launch and with exclusives. It's the console's ability to convince potential consumers to part with a large amount of cash and make it sustainable is what I'm challenging - and past trends strongly suggest it won't be.
Funny thing is I've £3k of PC at my disposal, (carrying me well into the next generation), difference is I'm realistic enough to know it's not something the average consumer is willing to stump up for. Even amongst the PC community my rig is in the minority, the Steam stats confirm it so.
If you think a £1000+ game console will have customers queuing around the block then you're completely deluded.
It has nothing to do with "energy". It's simply a case of I'm realistic and you are not.
Anyway, time to get back to KCD 2.
@NishimaruX Nobody...... Absolutely nobody.
Nishi: Funny thing is I have a £3000 PC.
Is this meant to make Weebleman and illusive give you a heart on your comment, like why did you the need to throw that in there ??
I love how Emo Chief always gets used as the thumbnail for these kinds of articles. Happy 4 lives on in perpetuity.
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In my eyes Asha has been brought in to trim the fat and package Xbox up into a sellable state for MS to rid themselves of.
That actually might end up being the best thing that could happen to Xbox though.
So this is why Phil chose to retire when he did. He must’ve seen this coming and decided to bail ahead of time. He really mismanaged Xbox ever since that ABK acquisition honestly. Xbox has been in free fall ever since then. Now the talented studios have to pay the price 😢
‘Fanboys’ and their behaviour is my favourite aspect of modern anthropology. Every platform has them but even when considering this, the sudden and immediate faith that some are placing in Asha is cute on a different level!
@Balaam_ couldn’t agree more. Phil has been given the boot and walked out of head office no doubt with a handsome severance package. All the C-suite earning big bucks after running the business into the ground, meanwhile lower level employees, devs etc lose their jobs. It’s a disgrace.
Asha's great reset in action. The new business cards with the all caps XBOX hadnt even been delivered to these studios yet.
#BringBackPhilSpencer
@BacklogBrad
Bring back Spencer? No.
Being back Peter Moore. He did more for Xbox than all these clowns combined.
@NishimaruX the red ring of death guy?
@BacklogBrad no, the guy that made Xbox what it was during the duke and 360 eras.
@Schonks yes I have a series S thanks for asking.
Yes I’m well aware. However many have GP stacked for upto 3years. And did so at an extremely low price. (Even cheaper than via 3rd party sellers) These will run out and conversion has got worse during this period too.
So it will be interesting once people have to pay more.
MS can use 3rd party sellers, Sony do their discounts themselves and honestly between the two you end up with similar deals.
@NishimaruX “I’m @NishimaruX” stated unceremoniously in much the same vein that “I’m Spartacus!” was exclaimed many moons ago! 🤚
@BacklogBrad man, the image of this cracked me up. All the studios in a room, Asha handing out the new XBOX business cards. Ninja Theory and Compulsion reach in, Asha pulls the cards back - "sorry, not you guys"
I look forward to Xbox's new brand color: Scarlet Red
Maybe they'll become like Atari and have "Xbox Collection" with 30 games and 30 year anniversary logos
Removed - flaming/arguing
Lots of people acting like this 'bloodbath' is exclusive to Microsoft / Xbox 🥱
So ID software's job listings vanished on Zenimax's website the same day all of these rumors and reports started coming out, and now George Broussard (co-founder of Apogee/3D Realms) is saying layoffs have begun at Zenimax. I'm not feeling very optimistic here, please don't touch ID or Machine Games Microsoft. 😥
@datamonkey As soon as Asha was promoted Seamus Blackley (Xbox co-founder) said / predicted that Asha was hired to slowly sunset and phase out the Xbox brand in favor of Microsoft's AI initiatives. I didn't believe it then, but now I'm not so certain.
The reality is that these game studios are not hiring the right people especially from a development perspective especially in the realm of highly distributed, server-based games. The system are extremely inefficient and slow and cost ridiculous amounts of money to operate and the game engines are weak. Looking at GTA6. No software should ever take 10-12 years to develop. That usually means you had to rewrite it multiple times as the technology changed. But, a well-designed, architected and engineered system, wouldn’t require that level of effort. And if you focus on the design elements as being the issue, even movies that are mostly CGI doesn’t take that amount of time or costs. I know this comment will be received completely negatively, but it is for the leadership of these studios and companies like Microsoft to make better hiring decisions and apply the same discipline and requirements they do for all their other products. Maybe then, the industry wouldn’t be crashing like it is because of crazy cost overruns and then games people can’t afford to buy.
@Elbow I hear you but I feel you're confusing being a savior with being perfect. Yes, he saved xbox. Remember on him we got ninja theory, compulsion, arkane, playground, inxile, obsidian. We also have the best generation of xbox since the 360 with two extremely solid consoles . We also got game pass with Phil.
So yes, he made mistakes. It's a business which is hard to run, especially when is not yours but of a trillion dollar company.
Easy to forget the good things happened under Phi and focus on the worst.
The best deal in gaming, game pass, was his thing. Let that sink it. The first true, successful gaming subscription service. This whole move made me swap to xbox, that's not counting the backwards compatibility. Yes, let's forget about it all.
@CrazyCatOverwatchGir I will say Game Pass is part of the ruin, since it ate into game sales, but I also see your point and don't completely disagree.
McKeownPlayz wrote:
Not a chance GamePass is staying.
Not a chance GamePass is staying.
Only time will tell. I look forward to finding out.
PsBoxSwitchOwner wrote:
the biggest test to GP is when people can no longer stack it. Even the die hards aren’t paying full price.
the biggest test to GP is when people can no longer stack it. Even the die hards aren’t paying full price.
Agreed. If they are going to shut Game Pass down the first step would be to limit stacking. I have 3 years stacked to 2029 at a much lower rate, mostly redeemed through free Microsoft Rewards.
I agree conversion has been worse recently but there's still good deals to be found. e.g. I topped Game Pass Ultimate back up for £7.70 a month via cheap EA Play conversion. Sites like hotukdeals are useful for this, though this one was on Eurogamer.
The trouble Xbox has is if they cancelled Game Pass, or significantly downgraded the service, they would owe refunds pro-rata based on the actual subscription cost, not what we paid - which they don't know as these are all digital codes. That could equate to billions in losses, that's not going to help them become more profitable! That said IF Game Pass is as unsustainable as some say that might still be the better option.
To be clear I don't think it is unsustainable, and so far based on Asha's actions they seem to want it to continue, in which case neither do they. (Actions like reducing Game Pass pricing, talking about increasing subs, and continuing every Xbox game coming Day 1). But then "the plan is the plan, until it's not the plan..." and all that! We will wait, and we will see.
@themightyant agreed I don’t think it will go, but I think it will change in January. MS already promised 75+ day 1 games this year.
I think next year it will be 50+ and some AA will miss out but some big games ala P6 will be included.
MS already promised 75+ day 1 games this year.
MS already promised 75+ day 1 games this year.
@PsBoxSwitchOwner I was thinking about that number the other day. It's one of the few guarantees we are meant to have with Game Pass, though there is no stipulation on what these games have to be, they could in theory just add 75 tiny ID@XBox games day 1 and cover that requirement... not that I think they will, but it is interesting.
Additionally that number was originally touted when the prices were massively increased 9 months ago, the price has since come down, do Microsoft still have to legally uphold this? I believe they said nothing else is changing except COD but legally I don't know if they could squirm out of it if they had to.
Again not that I think they want to - frankly they could do without more bad PR and rake stepping - but again thought it was interesting.
Regardless, if my count is correct, they are well on track having launched 40 Day 1 games so far and we are in month 6. At least 35 still to go!
Gaming CEOs aren't unlike politicians. They'll say what people want to hear and potentially do the polar opposite. AI WILL take a lot of industry jobs whether people believe it or not. Streamlining and profit for shareholders is all that matters to these people. That's the reality.
@CrazyCatOverwatchGir The best Xbox generation since the 360 is crazy. That just means it's better than Xbox One, which was Xbox' worst console up to that point. The Series S|X is well on its way too significantly underperform the Xbox One commercially, even though much more money was spent on it.
The only reason we had great games these last few years was because Microsoft invested an apparently unsustainable amount in its studios. If your parents give you money , but you buy a car so expensive that you don't have any money for the fuel to keep it running, so you have to sell it again, don't expect me to call you a savior.
Spencer was bold, we can admire him for his out-of-the-box idea of how to get Xbox back on top. Unfortunately that idea didn't work. And the execution of it has hurt the industry rather than helped it. So, yes, he was bold, but he was wrong and did more damage than good in the end.
Just compare how Microsoft tried to recover from the Xbox One to how Nintendo tried to recover from the Wii U. The Switch, instead of being an all-or-nothing bet, was actually cost-saving for Nintendo right from the get-go. Nintendo focused on the strengths it knew it had, versus Microsoft tried to buy its way into this new strategy. There was a very different road that might have led to success for Microsoft, they just didn't take it.
@McKeownPlayz I think it's staying, but it likely is getting a notable revamp. First party games are likely to follow what CoD is doing-- they'll still release on GPU, but six months to a year later. I think PS+ already does this, I'm not 100% certain since I don't follow Sony, but that is a much healthier way to handle this even if we end up getting the worse end of the deal.
@Kaloudz Definitely not an Xbox-only thing but Xbox is again first up to bat for this years massive set of layoffs, meaning all eyes are on them. It doesn't help they are likely to have the highest amount of layoffs.
@FraserG Xbox are the masters of bringing some hope and then destroying it. It’s relentless. I even DM’d Jez Corden the other day and his reply was simply ‘it’s tiring.’
@oopsiezz Maybe making games exclusive and fudging up deals is a way to accelerate that 😳
@themightyant Nah, Jason published a book about Blizzard wayyyyyyyyyyyyyyyyy before Xbox was even in the radar about all the bad stuff that happened and profited rather than go to authorities. He also seemed "off"... but whatever.
Yea this isn't an XBOX thing. People can fear monger and talk about how they mismanaged this and that, meanwhile playstation has had miss after miss while chasing games as a service and none of their first party games have hit. Wolverine looks cool but in a "spiderman in wolverines clothing kind of way." and bungie is about to be gutted.. FREAKIN BUNGIE... so yea.
@Dark_Gamer_X good book. yea knowing how that company has evolved it's a ***** show.
133 comments?! Jesus you guys love the drama...
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