470°

Report Claims Xbox Is Planning More Cuts Following Studio Closures

"The sudden closure of several video-game studios at Microsoft Corp.’s Xbox division was the result of a widespread cost-cutting initiative that still isn’t finished.

This week, Xbox began offering voluntary severance agreements to producers, quality assurance testers and other staff at ZeniMax, which it purchased in 2020 for $7.5 billion, according to people familiar with the company’s plans. Others across the Xbox organization have been told that more cuts are on the way.

Speaking about the closures more broadly, Booty said that the company’s studios had been spread too thin — like “peanut butter on bread” — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said.

Game Pass has not seen the massive growth that Xbox boss Phil Spencer may have been hoping for."

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just_looken14d ago

Sense it seems very few remember that human's were around before 2020 the next studio to close will be bethesda based no doubt on the history of.

Fallout 76
Elder scrolls online
elder scrolls blades mobile
fallout mobile
The vr versions of old games

Then you got starfield pissing out cash nothing to cover it.

I doubt tod's team or any sub team is making m$ cash they are no doubt on the chopping block for job cuts

If you can remember before 2020 even fallout 76 was made with over 4 studios.

purple10114d ago (Edited 14d ago )

pretty sure starfield coming to playstation 2024, nx gamer deep diving on the creation engine update in a recent blog, he seems to think, there is a lot of stuff developed to use on starfield for its Playstation release,

who will buy it though, ?? I think M$ has lost all good will now, after the Activision debacle, and now all these studios closing, people dont want to support them even if the game is half decent

Abear2114d ago

Bethesda is the only studio to release anything noteworthy on Xbox. Take Bethesda out and they have nothing this Gen. Hifi Rush and Starfield are probably their two biggest hits.

Cacabunga14d ago

They are counting on bethesda and activision on consoles and PC.
I really hope there would be a massive boycott movement against just the next release. I’m sure they will reconsider.

They see employees as trash, i will never give them a dime.

Eonjay13d ago

Someone said that cost $350 million to make Starfield. The use cost of making games has gotten crazy. With MS putting everything on GP it makes it harder to recoup costs. This is why I assumed that everything is coming to PC and PlayStation. I think they will have a whole slew of titles ready for the Switch 2 launch.

+ Show (2) more repliesLast reply 13d ago
-Foxtrot14d ago

"Speaking about the closures more broadly, Booty said that the company’s studios had been spread too thin — like “peanut butter on bread” — and that leaders across the division had felt understaffed. They decided to close these studios to free up resources elsewhere, he said"

So what you're saying is...you bought all these studios and you guys can't run them.

Jesus.

Inverno14d ago

Spread thin after firing over 2000 employees a few months prior. So basically they created the problem and their solution was to just fire more people. Absolute geniuses over at Xbox, of course can we even believe this to be the reason for the closures?

FinalFantasyFanatic14d ago

I was just thinking this, they just fired all those people and now stated they are spreading their staff thinly, this just reeks of incompetence.

just_looken14d ago ShowReplies(2)
Profchaos14d ago

Leaders can't run them hire more management create new roles don't shutter entire studios cause you can't figure out how to run them.

Unless the reality is this whole consolidation thing was really an excuse for IP harvesting

anast14d ago

He's lying. They are doing it for the shareholders.

14d ago
kayoss14d ago (Edited 14d ago )

The crazy part is that if Xbox goes under, all these great studios will also go under. They've bought up all these studios and instead of letting the studio manage themselves, they fire 2000 across and now they're complaining that they're understaff. Sounds like xbox bit off more than chew. Just like all the promises that they've made but cant keep.

JEECE14d ago (Edited 14d ago )

Well, what do you mean by "if Xbox goes under"? Because MS itself isn't going under. So if they decided Xbox was no longer worth it, it's not like they would just eat all those losses. Sure, for individual developers where there are substantial costs in terms of the people working at the studio and minimal money to be made selling related IP (i.e. Arkane Austin probably costs a lot in resources but MS couldn't have made much selling the studio because Redfall is worthless and they probably want to keep the Prey IP), they may just close them, but if they were getting out of gaming completely, they could sell the IP and related studios elsewhere. Like we may mock Bethesda Games Studios on here, but their biggest IP (Elder Scrolls and Fallout) are very valuable. Similarly, I know Halo has seen much better days, but you are kidding yourself if you don't think that IP is worth a lot.

+ Show (3) more repliesLast reply 14d ago
Eonjay14d ago

Reports are suggesting that Game Pass will be getting a price hike soon and that Call of Duty may not be added to the day one offering. I honestly have a hard time believing this but it does beg the question why exactly did GP fail? I think the answer is that it just didn't get the growth that it anticipated. Jim was right but I wish he wasn't because at the end of the day, its gamers, devs and other front-line workers who have to absorb the blow for Spencer and team's miscalculations.

14d ago
NotoriousWhiz14d ago

And out of the ashes something even better than Xbox will be born.

Eonjay14d ago

Honestly as long as is not a situation where the industry has to contract in order focus wealth on a few people who are already trillionaires..

Barlos14d ago (Edited 14d ago )

It's already here and it was born before Xbox was even a thing. It's called PlayStation.

Tacoboto14d ago

I think 2022 killed the Series X.

2021 was a good year for Xbox though and maybe the best in a long long time, hardware and software and as a publisher. Halo Infinite launched to popularity, Forza Horizon 5 blew everyone away, Psychonauts 2 was so well received, Flight Simulator on console, Deathloop even on PS5 & PC.

But they followed that up with next to nothing. Then 2023 with Redfall, a disappointing Forza, Starfield, and 2024 leads with closures and layoffs. And some tweets reminding us Hellblade is days away.

The only disappointment with the PS5 is not enough Sony games. Xbox followed up no games with disappointing ones.

Einhander197214d ago

PlayStations history has been built around third and second party publishing. The vast majority of games that people recognize as PlayStation games were made like this.

Insomniac only because a PlayStation Owned studio a few years ago in response to Microsoft buying up studios, every game they made prior to that for PlayStation was as a third party making a games published by Sony.

PlayStation has had an incredible year using that business model.

We got Granblue Fantasy: Relink, Final Fantasy VII Rebirth, Helldiver 2, Rise of the Ronin, Stellar Blade, and Silent Hill is right around the corner.

Eonjay14d ago

I think Xbox S. Brand was already dying for some time. Your 2022 point is interesting but also remember that is a year after the lock down which hD created false demand.

Einhander197214d ago

"I honestly have a hard time believing this but it does beg the question why exactly did GP fail? I think the answer is that it just didn't get the growth that it anticipated."

What?!?

Game Pass failed because from day one it was maintained by subsidization. Game Pass was never profitable, I mean, sure you can say that was because it didn't get the growth they predicted, but their predictions of it having "billions" of subscribers were completely ridiculous, to the point where saying that it didn't have fast enough growth is as completely out of touch with reality as their predictions.

Eonjay14d ago

To clarify, what I am saying is that there is a scenario where GP would have worked and thats where they had a lot more subscribers. You see MS isn't dumb and they charted out how many subs they would need to make the system work. That's why Spencer testified that they would need 80 million subs by 2027 (which is crazy now in retrospect). Now we also understand why Satya Nadella's bonus a few years back was based on that unrealistically high Growth in GP subs. From the beginning they knew that the only way to make it work was with a large base of subs. This is because as you said simply subsidizing won't work forever.

Einhander197214d ago

"To clarify, what I am saying is that there is a scenario where GP would have worked and thats where they had a lot more subscribers."

Yea... but again they expected/wanted an obviously unobtainable number of subscribers. Do you think that taking the risk was a good idea if it was based on getting billions (even 80m) of users?

"You see MS isn't dumb"

Are you sure? Have you been reading the news?

"That's why Spencer testified that they would need 80 million subs by 2027"

This was a refined estimate for the courts, and probably more truthful maybe... but go back and look at the first few years of game pass Microsoft actually said they were going to reach billions of people. Yes that was marketing, but still what they presented to the public to sell the idea.

I actually don't want to argue with you, normally I find your comments agreeable, but this one just came off a little off base to me.

Tacoboto14d ago

"Game Pass failed because from day one it was maintained by subsidization"

I do agree with Eonjay here - *if* Microsoft got the subs they want, Game Pass could have worked. Microsoft assumed people would buy into a subscription service like they already do for TV and Movies and Music.

But that didn't work out, at all, with the catastrophic consequences that we're seeing today.

"Microsoft actually said they were going to reach billions of people"

Reach != Subscriber count. That's your own conflation. Reaching just means "being available in" and usable in, billions of people with the awareness and ability to access the service. There exists no quote saying they estimate "billions" of subscribers.

Eonjay13d ago (Edited 13d ago )

No worries. I consider it more of a conversation than an argument. I learn alot from people who don't agree with me. Bring it on lol!
And yeah I forgot about the whole 'reach billions' PR from MS. I think theybare a victim of their own BS. I think at these companies you do have people push back on pipe dreams from the management.
I mean clearly it wasn't a good idea lol.

+ Show (1) more replyLast reply 13d ago
FinalFantasyFanatic14d ago

Maybe they need to put less games on there or just simply charge more from the beginning, I think they guttered their bottom line, they didn't make as much as they could have from selling games.

kayoss14d ago (Edited 14d ago )

GP fail because these studios poured in $100 of millions to makes these games only for it to given out free in GP. Even if Microsoft pay them to put in on GP, they are not making some of the profits they can potentially make. Especially not for AAA games. For studios making lower quality games, this may work but not for AAA. Look at Sony, their AAA games are award winners. Look at god of war ragnarok, they sold 5 million copies to date and needed to sell 3 million copies to break even. Thats a tough market to be in when your AAA game is not guarantee to break even let alone trying to make a sizeable profit.

JEECE14d ago

Ragnarok sold 15 million as of last November.
https://blog.playstation.co...

kayoss13d ago

Sorry, i missed the 1 when typing 15. But the point i was making is that not all AAA games are guarantee to be a success.

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Scissorman14d ago

For all the armchair executives who were calling for Sony to release its big-budget AAA games on PS+, the same exact thing would have happened at PlayStation. Game Pass has killed Xbox. Congrats.

shinoff218314d ago

There's not many of of us clamoring for Sony to do this because most of us understand it would kill Playstation. I'm sure there's a few but I've not seen alot of it myself.

porkChop14d ago

"the same exact thing would have happened at PlayStation"

But the same thing *has* been happening at PS. They've closed, what, 3 or 4 studios so far this gen? Laid off plenty of staff, restructured studios, etc.

BehindTheRows14d ago (Edited 14d ago )

PlayStation isn’t struggling. Xbox is. That’s the difference.

Sony also didn’t buy out multiple publishers with LOTS of studios and leave them in a state of uncertainty.

So, he’s absolutely right that Sony not following Game Pass in its entirety was smart as this very thing could have happened. Name a team, like Tango, who wasn’t struggling (like Tango) that Sony closed. Every closure was because of a studio who wasn’t pulling their weight.

rlow114d ago

You’re right about that. People on here will turn a blind eye and downvote because it’s Sony. Jim Ryan flew to the London studio and spent the day with them. The very next day they were all fired.

Calling out MS and not Sony. No matter how the studios came to be. Won’t make a damn difference to those who lost their jobs. In the end it’s all the same.

FinalFantasyFanatic14d ago (Edited 14d ago )

This is why I have always advocated that Sony should not follow Microsoft's footsteps and adopt their model, Xbox couldn't afford to do it, Playstation certainly can't either.

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14d ago
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230°

Ubisoft say AC Shadows protagonists will be "romantically attracted to different types of people"

Ubisoft recently shared more details about Assassin's Creed Shadows protagonists, confirming that both of them will romantically attract and be attracted to different types of people.

Hugodastrevas18h ago

That should please everyone I'm sure...

RpgSama3h ago(Edited 3h ago)

Feudal Japan DEI LGBTQ+ Samurai, sounds very accurate for the time period. Surely a decision made only with historical accuracy in mind.

Crows903h ago

Or even modern day accuracy.....

Lexreborn23h ago

You have no idea what you are talking about, bet you didn’t know nobunaga was bi-sexual. Or ran maru his is often depicted as androgynous was a “beautiful boy”.

So yeah, feudal Japan had tons of lgbtq and kawaii enough… A BLACK SAMURAI! All without the need of offending a Caucasian because the world is diverse.

VenomUK1h ago(Edited 1h ago)

This story has cracked me up so much! Bravo Ubisoft, bravo! 🤣. So last week everyone was upset that in the long-awaited first Assassin’s Creed: Japan game the protagonist is black. But NOW he is also LGBTQ+ ! It’s like the Ubisoft creative team sat around a table and said “How can we best impress our Kotaku/IGN/Polygon friends and antagonise gamers? Let’s make it woke x 100!’ And then they all silent clapped!

Just you wait until the Star Wars: Outlaws details come out, there better not be anybody complaining about Kay Vess’ dating preferences and the gay droid armies.

Christopher1h ago

It actually is.

Japanese were very Greek in their sexual experiences.

lodossrage1h ago

Lexreborn2 is right

Go read up on Japan's feudal era homosexuality and bisexuality was a very common thing in that time.

I just have to laugh because the same people complaining about this are the same ones crying about wanting "historical accuracy". When it's clear most of the whiners don't even know history themselves.

Christopher28m ago(Edited 27m ago)

Facts don't care about downvotes, btw. You either claim to understand historical accuracy or you just admit you don't like the stuff people did throughout history.

https://en.wikipedia.org/wi...

+ Show (3) more repliesLast reply 28m ago
CrimsonWing693h ago

Geezus, just make a good game… holy sh*t this is becoming insufferable.

Crows903h ago

Oh yeah!!!! What about being inclusive???

I'm sorry
..please replace the word inclusive with stupid.

Hofstaderman2h ago

You asking UbiSoft to make a good game? This is not 2002.

Hofstaderman2h ago

I take my hat off to you good sir. Brilliant.

Laskin1h ago

Thanks… I was originally going to write Samu-Bi but then I realized it was right there already so it works better

darthv723h ago

Is that genuinely a selling point for people?

RpgSama3h ago(Edited 3h ago)

They sure as hell want to see if it is, time and time and time again.

VincentVanBro2h ago

You have to understand they’re incapable of writing a good story so this is the best they could come up with

Show all comments (32)
80°

Unannounced Valve 6v6 Shooter MOBA Footage Leaked

ESTNN writes: "A leak for Valve's 6v6 3rd-person shooter MOBA has supposedly been released ahead of time. And if the reports are true, fans of the genre have much to be excited for."

XiNatsuDragnel1d 11h ago

Deadlock looks like bioshock and Moba had babies

JunonZanon3h ago

Valve really cannot count to 3.

Number1TailzFan1h ago

They should've had a new L4D like 10 years ago, it can be expanded upon a lot more but they just left it collecting dust.. it was a good game for its time but L4D2 doesn't have nearly enough content these days to keep players engaged, and it needs a serious graphics upgrade

mastershredder57m ago

Nice bend at the knee there Gabe. Seriously? A quirky character arena shooter? This late into the me-too-shooter market? I thought you guys were so much better than that crap. Gabe must need a bigger yacht.

90°

Limited Run Games: There's Still Demand For Physical Media, But Not In "Traditional Way"

Limited Run Games believes that more companies will start selling a limited number of physical media in a decade.

CrimsonWing697h ago(Edited 7h ago)

Like a vocal minority demand?

On PS5 alone the digital sales made up 77% of all game sales in 2024.

https://www.truetrophies.co...

Also, I despise f*ckin limited run games because they will extort people that want a physical version by marking up the prices almost 100% so they make more. So a game digitally that’s $30 you can expect it to be $60 on LRG and don’t even get me started on the collectors edition prices… it’s borderline highway robbery.

Jingsing6h ago(Edited 6h ago)

Yeah and other quarters it is 63% and sometimes lower than that, the split goes up and down so it isn't quite the digital domination you are trying to paint. I suspect given all that has been going on the past couple of years with digital and subscriptions people might start having a change of heart and tip the balance back.

CrimsonWing696h ago

No, it is quite the domination that I’m painting it out to be. Otherwise we wouldn’t be hearing how stores out struggling or seeing the removal of physical media flat out.

Please show me the quarter where physical sales beat out digital please. I would like to stand corrected.

darthv726h ago

I've never liked their practice of taking someone elses work and putting their own spin on it. Glorified bootleggers is what they are. Peddling their reproductions at more than full value of the original.

CrimsonWing696h ago

Kinda of crazy about their burned disc scam for 3DO games.

shinoff21834h ago

You do know the developers sign up for it and get paid. Believe it's a 70 percent developer and 30 percent limited run games. How are they bootlegging. They also go through Sony so it's all legit

TiredGamer4h ago

At the end of the day, they are providing a service that others don't. You can moan about it all you want, but the reality is that without them, very few niche games would get a physical release. It's niche and they don't get the benefit of large volume manufacturing and sales.

They are a business; they have many costs. They employ staff, probably pay out benefits, have to invest in capital and property, have to work out licensing and contract agreements, have to come up with design ideas and work with manufacturers, they have to market, and they have to take on risk of inventory. They do it while still providing a service that others are willing to pay for. Sounds like a success story to me.

shinoff21834h ago

Those numbers are fabricated as fk though.

Say there's 1000s games and only 200 are available physically. Of course digital will be higher.

CrimsonWing694h ago(Edited 4h ago)

what are you even going on about?

What is being fabricated as “fk” with and I quote, “ Sony's fiscal report for the year ending March 2024, less PlayStation owners are buying boxed PS5 games that ever before. PS5 and PS4 physical sales in 2024 now only account for 30% of all PlayStation games sold as players continue to invest more in their digital game collections. Plus, with the release of the new PS5 Slim with its optional disk drive, we might see even more players buying the best PS5 games digitally.”

Help me with the mental gymnastics on how the numbers are fabricated in a fiscal financial report…

And regardless of the number of games even your point still shows how digital is selling more than physical. Like, what is even happening here?

A physical media distributor is even saying the landscape is changing in this very article. I don’t even know how this is up for debate. What will be apparent is “fk’s” like LRG will charge you way above the MSRP for physical games.

MetroidFREAK217h ago

I'll continue to buy physical games until my last day as a gamer

Skuletor6h ago

I still have a physical copy of The Crew, lol.

MetroidFREAK215h ago

I have Exoprimal and Helldivers 2 physically so I feel you on that

SonyStyled2h ago

I have 4 sealed first release copies of Class of Hero’s 2g on PS3 from Monkey Paw. The only way they’d be printed is if you placed an order, so it was a publishing run by number of orders. Their shipping date was delayed a couple months due to some publishing issue from Sony at the time. Monkey Paw ended up making another run or two of the games publication after the first