According to UK technology site vnunet.com, Sony are looking at a total loss of US$2 billion from the cost developing and manufacturing their PS3 hardware. As it currently stands, the company has already lost more than US$1.65 billion.
Companies, particularly public companies like Microsoft, need to grow.
i mean its pretty simple, they spent close to 30 billion in acquiring activision, they thought they'd make it bk no problem, and that didnt happen.
its just shit that because of MS's miscalculation alot of people lost their jobs.
They are going to use AI for a large portion of the game development process. Upper management need bonuses and the shareholders need more money. So, people will lose their jobs.
They shouldn't have bought any studios. Some is okay...but they went on a shopping spree...stupid
The better question is why did Microsoft buy publishers for a service they were subsidizing they knew couldn't support.
And why are so many websites trying to make people feel sorry for Microsoft instead of truly criticizing the fact they are closing studios and killing jobs that would have been fine if Microsoft themselves hadn't gotten involved.
Quit feeling sorry for Microsoft and start feeling sorry for the industry and the all the gamers who are actually losing out.
THIS IS MICROSOFTS FAULT.
The first thing that happens after any major acquisition or merger is a consolidation of the whole new portfolio, which includes cutting any excess, bloat or portfolios that don't fit the larger MO of the big boy. So far, it's been par for the course with Microsoft and that's why gamers have been so against this acquisition. Tango Gameworks is the beginning. You think Microsoft wants to pay to keep small timers like Ninja Theory in business?
There is absolutely zero evidence to suggest that Microsoft will improve any of these studios, but plenty to suggest that they will get rid of what they don't need and hold onto the IP. The real agenda of the acquisition was always to acquire The Elder Scrolls, Diablo, Fallout, Call of Duty, Candy Crush etc. that will create millions in passive revenue stream for Microsoft regardless of where the games release. Microsoft simply wants their cut.
Because of Games Pass Microsoft has no interest in investing in new IP which is risky and requires creative talent they can neither nurture nor manage. Game Pass has also not grown in the way Microsoft expected it to, even post acquisitions. Therefore the logical thing to do, without serious money makers to release, is to cut as much cost as possible.
Backward compatibility works for many games on newer consoles, but titles such as The Simpsons: Hit and Run have been left out.
From base building to swinging willies, here are the best survival games around, which include a couple of less than obvious picks.
OMG
"While this might sound like more doom and gloom for Sony's besotted next-gen system, it should be noted that Sony make significant profit from software, rather than hardware; any refinement of the manufacturing process will also stem these large losses. Of course, this also makes a price reduction in the near future less likely."
No they don't with an attach rate @ launch of 1.5 game per unit... My god. 2 Billion dollars and no income. Not on games, not in online service. Bad business model!!!
$2 BILLION??????????????? WOOOOOOOOOOOOOOW, that's insane! Talk about having a bad day!
how do i appove a story its all grayed out... this has really been pissing me off.
only contributors, moderators and administrators can approve a story...so u first have to become a contributor........
This happens to Sony every time they release a new system. However, after the 1st year is where they make up they money that was lost. Sony has been stating for the longest that the ps3 is a long term investment and it is a trend that has proven correct for the previous 2 systems. Sometimes you have to take a step back to move forward.