Michael Pachter isn't afraid to say what is on his mind, and on the latest episode of his AIFTD Games show Pachter Factor he lays into Sony for skipping E3.
Nirav from GL writes: "If the makers of a GOTY competitor that outdid sales and Game Pass expectations and owned by the richest company in the world cannot stay open - what hope is there for everyone else?"
***If the makers of a GOTY competitor that outdid sales and Game Pass expectations and owned by the richest company in the world cannot stay open - what hope is there for everyone else?***
None if you stay in an arena of corporate driven metrics. And this is what happens when you allow publishers to buy up massive amounts of studios and IPs. There's only so much internal competition and the focus in the end will remain on those who look best on a spreadsheet.
Players can be so driven by what is best for them and only see what is put right in front of them. But that's not what is best for them. They are being lied to constantly, as seen by Microsoft's ridiculous praise for Hi-Fi Rush and Phil's lies about Redfall prior to release and how big of a supporter of both studios he has been. But, instead of thinking "wait, this corporation wants me to think this way, should I be listening to them and believing them?" players eat it up and go "OMG, did you hear what they said! They're just like us and they know what's best for the industry."
And because of this single-mindedness of the majority of gamers, we are where we are now. Massive layoffs. Massive studio closures. Games that we were told were representative of the core values of said corporations shelved and studios behind them shuttered. The truth is coming to bear because the truth all along was only what the numbers in an excel spreadsheet told the corporate suits.
If you truly want what is best for the industry, what is best for developers, then you need to support Indie games, support developers that maintain control over their IPs and direction, support boutique publishers who only exist to help Indies make it out the door and don't own the IP. Stop supporting major corporations with your money or you devotion. Stop playing their games, and I don't mean video games, but their marketing, their double speak, their guy without a tie who says things you want to hear PR, their future of video gaming concepts as if we were hurting for new ways to play games other than installing/downloading and playing them, and especially any slogan from them that gives the impression that they are for you, the consumer. They are not. You're merely a value on a spreadsheet.
Sure, I'm the one drinking the koolaid. Keep believing in the corporations. They definitely have your best interests in mind. All hail the Big Green, For You Blue, and Nostalgia Red! All praise big corporations buying up other publishers. All praise the inevitable spreadsheet adjustments. For greed, not the players.
This should not be surprising to any of you. We have been saying for MONTHS that Game Pass is not sustainable and that these acquisitions will come at a massive cost to the industry. People refused to grasp the difference between buying and investing in a developer like Insomniac or Housemarque, and buying the entire publisher. People refused to accept that spending billions to acquire the biggest publishers in gaming means you have to RECOUP those costs, and you aren't going to do it without consolidation, focusing on core IP that sells, creating revenue streams via ownership and releasing on other platforms, and closing down studios that are superfluous to the budget requirements. You will not recoup those costs by investing in risky new IP or creative new games and studios.
No, people cheered Microsoft on like they were delivering GOTY titles to their door and pouring money into the industry to grow Indies and triple A projects.
You are getting what you deserve. You take the consequences of the practices you supported.
Layoffs happen. Some games don't succeed. Everyone has seen it happen. Happens even to the winners.
This, however, is goddamn shambolic and if you can't see it now then there's no helping you and you should keep enjoying the "value" of Game Pass while contributing nothing to this industry.
I've never seen the developer of one of the best games of the year get axed before.
Ninja Theory is next after Hellblade 2, I can see them going independent again. There's more to come from MS.
This is exactly it. There is more of this coming. MS runs from one bad idea to the next, and GamePass is an unsustainable train wreck that we get to watch in real time.
GamePass is stalled for subscriber growth, and all that they can hope for is to either A) Reduce the quantity of games (i.e. shutter game studios), B) Reduce the quality of games (to make more mediocre but lower budget offerings), or C) Raise prices on existing customers. Or some combination of those.
MS does not have a passion for the industry. The XBox project, from the beginning, was sparked from the fear that someone else would eat their PC market lunch by making a games machine that replaced the PC. THAT was the entire motivation for getting into the games industry.
The former president of Blizzard Mike Ybarra in a statement on Twitter says Microsoft Gaming CEO is hurting just as much as anyone else following the closure of three studios under Bethesda - Arkane Austin, Tango Gameworks, and Alpha Dog Studios. Roundhouse Games is also joining ZeniMax Online Studios.
Yeahhh I doubt it's hurting a millionaire as much as it's hurting fans and people who lost their jobs
Mike Ybarra‘s defence of Phil Spencer is the dictionary definition of tone deaf. Even Alanah Pearce, who’s close to Aaron Greenberg and Phil called him out on it.
“Mike, I have a lot of fondness for Phil and don’t doubt he’s incredibly bummed about this, but CEOs can handle some “shots” amidst people having their lives destroyed. Your sympathetic posts should solely be directed at those who’ve lost their jobs.”
https://x.com/charalanahzar...
At this moment, even Xbox fanboys are starting to hate Microsoft. It's fu**up, after fu**up, after fu**up... that's the state of Microsoft gaming.
Purchasing developers left and right, then killing them off...
Phil was the worst thing that happend to Xbox. Might as well just shut down their gaming division and fu** off
I'm sure he'll be upset that those cheques contain a small percentage of money MS is still making from the closed studios games too. Next time someone purchases High-fi Rush or Evil within all that money is now just Microsofts, just think the former devs at Tango who made Hi-fi Rush MS's most highly acclaimed game in years will get nothing more.
MS are buying these publishers for the big IP's like Elder Scrolls and Call of Duty they have little interest in the ones that don't make huge profits... and firing thousands and closing studios looks good on the next quarterly shareholder report. Gotta protect the share price.
This is all coming from the executive who thinks we should have the option to tip devs... apparently so publishers can pay devs minimum wage. Will someone think of the C-suite executives!!!
That was from a former Blizzard exec. Did Phil make a comment on that also?
edit: Oh, it wasn't Phil who said this himself.
Yeah, the guy making $10m a year is hurting as much as those who have lost their jobs and are worrying about their future and supporting their family. /s
It takes a real lack of shame to even try put the Good Guy Phil™ spin on this. It's not going to work this time.
He's sitting around feeling sorry when he should of been doing everything in his power to get people jobs in other studios you're telling me after toys for Bob split from Activision there wasn't a opening in the call of duty mines for arkane it's just woah is me.
Under his leadership, many have lost their jobs and fewer games have made it out the door.
people should call for his resignation, he has literally flushed xbox down the toilet.
another 3 studios closed today, thats it now, get out
Well purple101 you'd have to convince Observer and the other Xbox faithful that these studio closures and the fallout from the acquisitions is a bad thing and a sign of what's to come, and I don't think you're going to do that.
Nobody has managed that feat.
Obscure and Zeref have been summoned to the floor to give their account of these proceedings.
I 100% blame 'nice guy Phil' for the death of Xbox. The thing to realise is the Xbox Series S & X are performing WORST in console sales and game sales than the much criticised Xbox One - how can this be?
His two big mistakes were 1-not developing enough exclusives and 2 - always trying to beat PlayStation. If he made more exclusives over his decade reign and not tried to 'win' then classic Xbox would still be here in a profitable third place. Instead he tried a series of different projects to win and he ended up ultimately destroying Xbox by changing its relationship with its most loyal customers. What did he do?
* Phil spent a decade only release new iterations of Halo, Forza and Gears and not investing in creating new first party studios and IP. He mishandled Scalebound and shutdown Lionhead Studios.
* Phil tried Mixer, a streaming channel that could be used to promote Xbox dominance with free giveaways...
* Phil tried to create a streaming service that he regarded as too superior to consider PlayStation and Nintendo as competitors! But would instead compete with Netflix and Google...
* But his worst mistake was Xbox Game Pass - a multi billion dollar investment that could only work if completely dominated the worldwide gaming market - but it didn't. Instead it changed the culture of Xbox gamers so they resented spending on third party games as they were now trained to expect everything for free. Now all the games Microsoft had invested so much in were not only NOT making money from other platforms, as ever, but they were now NOT EVEN making money from Xbox customers.
If Phil Spencer had just concentrated on making new games and not non-stop gimmicks to beat PlayStation, I genuinely believe the Xbox would be an attractive platform with regular exclusives like Halo but with others too that would give it its distinct identity and maintain a profitable existence. Phil's been in charge for over a decade, the blame lays at his feet.
Oh you and I both know that's never gonna happen. Some people you can't convince them there is a fire even if their own hair is burning. Denial is a powerful thing.
Last MS financial results for FY24 Q2 which is the company's sales data through Dec. 31, 2023. According to the earnings, gaming revenue is up 49% year-over-year.
That doesn't sound like he flushing it down the toilet and that also makes very unlikely he loses his job any time soon.
Revenue up due to acquisition... Spending 10s of billions for new companies of course revenue is up. They don't tell us profits but they wouldn't be shutting down these divisions if they were in the black. Pretty sure they're shifting so radically because their current state has been an abject failure
This is 100% due to Activision Blizzard. If that deal had not gone through, Xbox revenue would be flat, which means a game like Starfield failed to move the needle.
@crazyCoconuts
While I agree that Phil and team have gone back on their word. Especially the last six years of promises.
But I disagree on your logic about the revenue.
They bought the companies to boost their gaming division revenue. In that regard they were very successful. They are owned by MS so your point is moot.
They made all that money and still doing studio shutdowns...
It's bottomless pit of money MS wants. There's no amount of money MS can make to save their own studios. They're doing it out greed and general incompetence. Calling Phil's head won't mean anything or do anything for MS. They'll still destroy regardless.
Damn idiots don't know how to read revenue reports. Revenue was due to folding in Activision Blizzard Revenue. They were up 61% due to Activision Blizzard with 62% increase. So they only went up 1% over last year. But idiots going to be idiots thinking Spencer is helping Xbox right now. Lol
It is funny that it was him finally touching Bethesda that was the straw that finally broke the camels back. They should have been calling for this years ago.
You obviously don't know what literally means but ya , all console bosses need to accept accountability for their actions.
So, Phil gets canned. Do people really think that the person to replace him won't kowtow to those above him? Like his replacement won't look at spreadsheets to find things to remove and ignore the human element and accomplishments behind those numbers?
No matter whether Phil is there or not, the problem isn't just Phil. It's the corporate culture and how they prioritize numbers over anything else. Stop acting like getting rid of Phil will get rid of the issue. It won't.
Phil needs to go. His time is over. When you oversee layoff after layoff after studio closure after studio closure, it's impossible to keep going forward and have people - employees and fans alike - trust you in any way.
Especially after HiFi Rush hit their metrics. I guess we know what to expect for Ninja Theory next once Hellblade is out, and Machine Games once Indiana's out & Todd Howard focuses back on ES6.
Ninja Theory won't last after HB2. Because it won't hit some impossible metric in order to be a success at MS.
Expect NT to be gone in a years time also. Where the hells the advertising for Hellblade 2? Another MS issue they do to themselves bunch of clowns.
Their first-announced Series game going out like this. Their marketing so far has just been a daily tweet or two the last week.
And now this will overshadow everything up till and through its release. Maybe Ninja Theory will get the same dignity as Tango and bow out with a better PS5 port.
Hellblade 2 out in 2 weeks and no one will even remember it by the beginning of June
Unrelated but since there's a shortage of devs to make Fallout content ... MS could've asked Tango or Austin or both to make a new Fallout game (doesn't have to be a full-blown RPG) ... fans would've gobbled it up after watching Prime's FO season 2 ... and it would've been a nice experiment to check the feasibility of having Fallout venture into non-RPG genres (like it was done before during Interplay days).
This is what I would've guessed/suggested from past statements from Xbox & co., that you can experiment with new ideas (using new or existing IPs) at current Xbox ecosystem.
But ... after axing Tango & Austin ... don't know if Xbox is still open to such experimentations.
Just watch Outer World's 2 also be dead on arrival without Playstation and Nintendo gamers buying that game you can expect Gamepass to kill that IP too. Ditto for making that contract to exclude Playstation gamers from getting Indiana Jones too. Remember how Tomb Raider sales were on Playstation after the 1 year exclusivity? Expect even worse for Indiana Jones too
It's not just Phil (Phil is just the dumb kid taking the money) and Kotaku is NOT the voice to listen to as shi7 sites like Kotaku helped contribute to modern gaming toxicity and disinformation. Kotaku staff = Much like Phil, and yes need to go.
MS has been posting record profits, you think they give a crap about games and gamers? Think again.
What a prat.
People gave him and Matt Booty the benefit of the doubt for a few years due to the mess they inherited but a decade on and all they've done is ruin gaming for everyone.
The only success they've had is MS Flight Simulator which was developed by a third party anyway - and Forza Horizon which by pure coincidence went downhill in quality the second Playground were acquired (imo) and that's all I can think of. Everything else they've touched has been ruined.
It's genuinely staggering how either of these two guys are still there.
Phil didnt even inherit a mess, he was equally responsible for it because he sat on the executive so the kinect and XBONE roadmap vision was also on him. Mattrick was the convenient public scapegoat back then but now theres no one to place the blame on.
If they're to keep anyone, I'd hope it would be Sarah Bond. She's at least consistent, constantly doing quick tweets with green emojis where she can, repping the brand, saying the next hardware will be the biggest leap ever (whatever that means).
Phil Spencer openly minimizes Xbox by going out of his way to congratulate competitors and talking about how great playing non-Xbox devices are; if only Xbox had someone that could even pretend to like Xbox for being Xbox.
This is the point I always found frustrating, the whitewashing of Spencers reputation when he got promoted. He was involved in the slide into mediocrity of the 360 generation!
The worse is yet to come and their fanbase don't know it yet, someone at MS posted and deleted a tweet saying all their main ''exclusives'' Halo, Forza, Gears etc will be heading to PS soon so grab a front seat ticket and some popcorn and enjoy the show;) The crying will be hilarious.
Yeah he is absolutely responsible for the abysmal state of Xbox. I can't tell Mattrick and Spencer apart at this point. Both have been horrible executives for the Xbox brand.
Phil's responsible for this generations mess. Phil was the one following orders under Steve Balmer and Don Mattrick.
Don even admitted he messed up on camera with the Xbox documentary
Let's keep the facts straight. Everything currently now is Phil's fault.
“Pachter: “Sony Making a Huge Strategic Error Abandoning E3…Dumb Strategy…Biggest Loser”
He’s right. PS5 isn’t selling well. There’s no great exclusives. There’s no upcoming games to look forward to. All thanks to abandoning E3. What a disaster!
This guy is as irrelevant as e3 itself
This years E3 was one of the worst ever, not a big mistake at all, demand and sales prove that.
Uh oh, Pachter's back.
Why does this guy's name get dropped so often? I honestly don't know a single person interested in the thoughts of Michael Pachter.
Highest revenue and profits ever in gaming....when was the last time playstation was at e3🤔
Seems e3 needed playstation more than playstation needed e3🤷♂️