During Microsoft's financial conference call, CEO Satya Nadella and CFO Amy Hood talked about the Xbox business.
Wccftech discussed the recent Xbox news with MIDiA Research analyst Rhys Elliott, who pointed out that a strong upcoming Games Showcase could help a lot with fans.
I was hoping for something different from Coalition, not Gears 6 so soon.
Their expertise in UE development could've propelled them to try out other IPs using the new UE5.
But guess, given recent MS' state, Gears 6 was the 'safer' call for the studio. But still hope they venture other IPs or even other genres ... at least FPSs in future?
Microsoft seems only interested in maximizing profits through its biggest IPs at this point.
So soon? Its been 5 years since Gears 5, longest gap between games in the franchise.
Why would people be less angry? If MS made it's own games instead of buying up what was already available then we wouldn't be in the situation that everyone is angry at.
MS is the problem.
Everybody pays for or uses MS in some form personally or professionally. If that’s considered supporting, it hasn’t been helping Xbox.
Fuck MS and Phil. I already told that shit bag off on Twitter, if the dumb ass responds I highly doubt it, I will go off much worse. What a fucking disgrace MS and Phil are to the gaming community.
There are two reasons why all those Bethesda studios closed, and neither of them have anything to do with Bethesda (directly)...
Game Pass and Activision.
The guy confirming what we've all (well, most of us) been saying since the latest purchase.
Remember the relatively common counter that went something like "I'm sure you arm-chair CEOs know better how to run a company than the biggest company in the world"?
I mean - there's a lot to running a company for sure, but on this topic it's hard to understand how Phil and team didn't see this coming.
Phil and team knew it was coming and planned for it. It's not even a conspiracy, it's simply the business of cutting costs and superfluous studios after a major acquisition. They don't give a damn about Tango Gameworks or other small creative studios that won't recoup their losses. They don't care about investing in this industry. They have no interest in risky and expensive new IP. They are only interested in profiting off ownership of Bethesda IP, Call of Duty and Candy Crush.
I guarantee you that not one single game under their banner will improve or become bigger and better.
Welcome to the Xbox family, what a pathetic joke.
Anyone who continues to support this, enjoy your future, because this is it. Ninja Theory is next, and Perfect Dark after that.
Especially not with the evidence of tons of existing movie streaming subs out there and how they fail to make a profit with over 100m users each quarter.
Apparently they're debating if they wanna put the new Cod on Gamepass or not.
Either grow GP with Cod or don't put it on GP and grow the revenue the traditional way while GP will suffer.
The mess that MS puts themselves in.
Honestly i think Bethesda needs to buy themselves out of zenimax/MSs hands and do their own thing, i honestly think that would fix a lot of issues and save them from a potential closure.
There's a reason they sold in the first place. And Bethesda is not closing anytime soon lol. As much as I hate the studio closures. They were all small studios 2 of them were mobile studios.
I think these are growing pains and Xbox will get back on track. But they're not getting any more passes.
I’d like to see your reaction to being growing pained out of your job after the launch of a successful product.
Excuses, Excuses, excuses.
If growing pains have been happening for the best part of a decade, they're not growth.
Zeref nii San
I'm sorry but xbox has been rightfully bashed due to constant incompetence
Yet you literally just gave them a pass, being "small studios" or "mobile studios" is irrelevant. There's no excsue for closing Tango, none. They praise the game, they PR talk about it's the kind of game the company needs and yet they shutter the developer, that's foul on every level.
Bethesda greenlit Redfall, launched Fallout 76 in the condition it was in (and the fiasco with the bonus bag), and spent all that time on Starfield finishing it as it was with that same engine. Wolfenstein Youngblood exists because of them too, not Microsoft.
Are you *sure* leaving them alone would actually result in a better outcome, not just a different one?
A lot of this excessive monetization, and GAAS crap started when Zenimax decided to start looking for a buyer. Not a coincidence that there was a sudden shift in prioritizing profits above quality or even coherence at the same time. They wanted big numbers to attract buyers, now that they've been bought, MS wants exactly what they were baited with.
However even under Zenimax they made enough to self publish sometimes, so i would imagine it's not too far fetched that they could pay their way into independence if they REALLY wanted to.
Also even people at Bethesda and Arkane were hoping MS would cancel the game as again, they were forced to make something they didn't want to make.
Ah, we can see how the Microsoft media machine works.
Every article I read now is some kind of attempt to shift the blame off Microsoft and paint them as the victims or convince people that Microsoft mistakes were just some kind unforeseeable unfortunate twist of fate.
The shills are out in full force today.
This is not at all what this article is saying. It's saying that honest and useful studios are getting closed because of big money deals elsewhere and the faults with game pass as a model.
I understand what the article is about.
It's a deflection, it's a putting the cart before the horse article.
Let me tell you how this problem wouldn't have existed in the first place.
Microsoft not creating a service funded by subsidization and having the foresight to see that it would disrupt consumer spending habit to begin with. Then not buying Bethesda and undertaking costs for a service that was already failing to pay for itself because their own expectations of Game Pass having "billions" of subscribers was unobtainable from the very start.
And if you don't think that was the case go back to the article on the day Game Pass launched and read the comments from people from day one who foresaw that this would be an unsustainable model and would cause people to stop spending in the same way.
***Microsoft not creating a service funded by subsidization and having the foresight to see that it would disrupt consumer spending habit to begin with.***
This article literally supports this opinion. He's not praising Game Pass or the ABK purchase.
This is an explanation of why it failed, there is zero blame put onto Microsoft itself.
Yes, it talks about what went wrong, but it doesn't say Microsoft shouldn't have done it. It doesn't say Phil should have foreseen this outcome and stopped before it got to this point.
"convince people that Microsoft mistakes were just some kind unforeseeable unfortunate twist of fate"
***but you're seeing the impact; all those smaller studios making really interesting games are going to fall away, simply because as good as games like Hi-Fi Rush are, they're never going to make enough money to make up that $70B hole that Xbox now has to dig itself out of.***
If you see that as support or you explicitly just want people to end their argument with "and, in conclusion, Microsoft bad" then that's on you. This article does not support Microsoft's choices and highlights the faults. Nothing it says is good about these choices, even saying that putting CoD on Game Pass would be money losing for them because they've set themselves up for failure (and not putting it on there will drop subscriber numbers like crazy, meaning their Game Pass plans were shit to begin with).
No matter how you look at it, they're saying Microsoft made decisions that hurt the bottom line, force closures, and leave Game Pass in a situation where they lose no matter what they do. It's all negative.
Christopher, if Microsoft hadn't made Game Pass and bought a bunch of publishers would this article even need to exist?
***Christopher, if Microsoft hadn't made Game Pass and bought a bunch of publishers would this article even need to exist? ***
How is this an argument to anything being discussed? This is just as valuable of an argument as "if fish had stayed in deeper waters, they wouldn't have evolved to tetrapods, adapted to shallow water and then to land, and we wouldn't even exist and have to worry about game pass at all."
You're bringing nothing to this argument and then complaining that other people are highlighting the issues with Game Pass and spending tens of billions on studios because what we should be discussing is what it would be like if Microsoft hadn't done any of that.
Well, they did do it. Now pull up your big boy pants and join in on the discussion of what that has meant for the industry since then and, especially right now, how that is affecting the industry and game studios under Microsoft. None of us are able to go back in time and change what was done.
Christopher, this isn't me not understanding what the article is about, it's you not understanding what I am saying.
If you want me to make excuses for Microsoft's bad decisions you're not going to get that or just agree with people who are doing that, it's not going to happen, nor are you going to convert me into thinking xbox "needs to exist".
Ya know what, maybe "Microsoft bad".... maybe their decisions ARE having a negative effect on the industry, and instead of deflecting from their actual actions and making excuses for them we stand up and say "no" "Microsoft is hurting the industry"
And maybe, just maybe, it was so obvious that this was going to be the outcome that even nobodies in comment sections on websites were able to easily predict this outcome, yet Microsoft did it anyway then kept doing and even when it became undeniable that it was having a negative impact on their business and and the industry itself, then they knowingly made even bigger purchases and caused more problems.
And the one thing you're right about is that I can't go back in time, but I CAN speak up and try to keep it from happening again...
Maybe if the people who were speaking up 7 years ago were listened too we wouldn't be having this discussion and Tango and Arkane would still be in business along with all the other people who have lost their jobs due to Microsoft's actions.
Do you like analogies?
What you're saying is like an alcoholic crashing their car then trying to explain it by saying it was caused by everything except the fact that they were dunk because they are an alcoholic and don't want to stop drinking.
The article is essentially focusing the blame on MS. GamePass was a hail mary play to change the gaming paradigm and carve out a special niche for themselves, emulating the Netflix model, that might have led to MS becoming the leader in the long-term. Unfortunately, the subscriber growth isn't really there, and the model isn't really built to weather that lack of revenue. MS is now in a restructure mindset to figure out how they balance out their model in a way that can still make them money.
've always believed that GamePass was a high risk shot that had a very low chance of long-term success. But the problem with it, whether it succeeded or not, is that it accelerated the proverbial "race to zero" consumer expectation that ran its course in the mobile gaming industry in the late 2000s. When consumers start thinking that games should be "cheap" (as in through a $10/month all-you-can-eat subscription model), it turns the narrative against games being priced at realistic levels. So with the GamePass failure, they've not only sabotaged their market share, but they've impacted the entire industry and devalued the cost of game development to the average consumer. So now it's harder to develop mega-big budget games and to earn the revenue needed to pay for them.
***If you want me to make excuses for Microsoft's bad decisions you're not going to get that or just agree with people who are doing that, it's not going to happen, nor are you going to convert me into thinking xbox "needs to exist". ***
No one is asking you to make excuses for Microsoft's bad decisions nor is anyone asking you to convert to anything.
***Ya know what, maybe "Microsoft bad".... maybe their decisions ARE having a negative effect on the industry, and instead of deflecting from their actual actions and making excuses for them we stand up and say "no" "Microsoft is hurting the industry" ***
Literally no one here is doing this. They're literally discussing how Microsoft's decisions have hurt the industry. Except you. You're rambling about why people aren't complaining about Microsoft when people are in fact complaining about Microsoft.
*** And the one thing you're right about is that I can't go back in time, but I CAN speak up and try to keep it from happening again... ***
Then perhaps actually add something to the conversation other than calling people shills when people are complaining about the decisions and repercussions of Microsoft's actions.
Christopher, you're fighting a block wall here - Ein will continue twisting and contorting any remark to fit his self-created narrative.
"Then perhaps actually add something to the conversation other than calling people shills when people are complaining about the decisions and repercussions of Microsoft's actions."
Cristopher, in no way is the author of this article complaining, they are explaining what happened it's literally the title. They never once say that Microsoft shouldn't have bought Zenimax or Activision or that Game Pass was a bad idea to begin with. They think the problem with Game Pass is that it didn't grow fast enough, not that it was a bad idea from the get go.
BTW this is his job title.
"Public Relations and Communications Leader"
What do you think a Public Relations and Communications Leader does to make money?
Edit: I have read a dozen of these articles that just started coming out in the last 24 hours that are trying to shift the conversation away from blaming Microsoft, the shift here and in several other articles is trying to say it just didn't gain subscribers fast enough, not that it was a bad idea to begin with that was doomed to fail or placing the blame on anyone.
It was all just an unforeseeable outcome, no one should be held responsible it was just a billion dollar oopsie that's costing thousands of people their jobs and has caused a downturn in the entire industries sustainability.
Oopsie!
It's greed. MS has the IP's it wants now it's dumping the studios that it's raided, MS will still make money from Tango's games unlike the people that made them. If anyone follows MS outside of gaming you'll see this is what they do, buy companies take what they want consolidate some of the workforce and shut them down. I don't know why people are acting so surprised when this is Microsoft being Microsoft.
MS is a three trillion dollar company, if it enters a market it has no need to compete, they take what they want and with the financial influence it can bypass laws that are meant to protect the consumer and the workforce. Just look at how they are cornering the AI market right now with buyups and investments.
Electronic Arts CEO Andrew Wilson said generative AI will allow bigger, more immersive worlds, and the developers were very eager for it.
If you want a tool to reduce the time it takes to make a product, AI is a tool to do that. If you want a tool to just make content for you, AI is a poor crutch for good writing and storytelling.
I don't disagree. However, good writing and storytelling in games are still pretty rare. Honestly, AI as it is right now could probably produce output similar to, if not better than, your average experience. Especially because the main issue I see being thrown around for its use is the generation of ludonarrative problems. But, we have literal GotY winners that are incarnations of ludonarrative problems and written by humans. So if specialists don't care, would the average player even notice?
That said, from the perspective of improving the craft, AI will undoubtedly do more harm than good if used for that.
Oh, don't get me wrong, I'm not saying what we're getting out there right now is overall great from everyone. There are obviously a lot of bad writers out there. The problem is AI learning from bad writers. No thanks!
Time for AI to replace CEOS. That way, when it fails, as it inevitably will, there's no one to tell. The employees can continue to make games, get raises (no CEO bonuses), and there will no longer be bone headed decisions by id10Ts.
Think how much easier it will be to fire an AI CEO than a real one! We've sacked Ocrulos AI CEO and will be replacing him with Kensho Technologies v3 CEO.
Games are about to get worse. AI will do most of the lifting, devs will polish the turd and prices will raise because of "the economy".
'Generative AI Will Allow Bigger, More Immersive Life>>>>>> >> Work Balance and Paychecks for our Employees, Says EA, and Developers Were 'Hungry' for It'
Sounds good to me.
Next gen Leadership in for 3 quarters in a row.
Not too bad. It'll be interest to see how they do this holiday with out any big releases and GoW coming out.
Imagine paying all that money for a streaming box...
Can't get sales numbers, can't get games out within a decade of purchasing a studio, won't reveal any metrics that actually measure anything of value whatsoever, but here's how hard our Fortnite numbers hit!!
Isn’t Xbox only winning in NA because you ca actually find Xbox on shelves in the USA? It was very, very difficult to get a ps5. But I was able to find an XsX on a whim, I only had to drive 40 minutes to a GameStop.
So a free2play game was streamed from a browser for a couple of matches and MS is proud?
Ok, why not present Halo Infinite streamed play numbers... it's a first party title?
Ohh....OH.... Oh no. Really???