Gamasutra: Following the release of February's NPD sales figures, analysts have called out its particularly strong performance in light of macroeconomic downturns, calling the industry near 'recession-proof.'
Said simExchange's Jesse Divnich, "Today, retailers announced that they have posted negative same store sales growth for February and many economists warned that the United States economy is currently in a recession or on the verge of one."
"Irrespective to that," he continued, "the video game industry continues to post record growth and although no leisure/entertainment sector can be considered 'recession proof,' the video game industry continues to prove to be one of the very few industries to have the least elasticity to the current economic environment."
"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."
"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.
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.
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.
A look back at 4A Games' admirably consistent post-apocalyptic shooter franchise.
"While the 20 year anniversary edition of Nordic Game, NG24 Spring's homepage on 21-24 May in Malmö, Sweden, is getting closer, the organizers announced that more than 150 speakers are now lined up for the show." - Nordic Game.
Damn, people don't pay their mortgages buy they get the latest title for their respective consoles, just amazing.
We starve, but we starve happy!!!