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."

Read Full Story >>
purexbox.com
just_looken23d 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.

purple10123d ago (Edited 23d 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

Abear2123d 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.

Cacabunga23d 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.

Eonjay22d 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 22d ago
-Foxtrot23d 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.

Inverno23d 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?

FinalFantasyFanatic23d 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_looken23d ago ShowReplies(2)
Profchaos23d 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

anast23d ago

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

23d ago
kayoss23d ago (Edited 23d 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.

JEECE23d ago (Edited 23d 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 23d ago
Eonjay23d 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.

23d ago
NotoriousWhiz23d ago

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

Eonjay23d 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..

Barlos23d ago (Edited 23d ago )

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

Tacoboto23d 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.

Einhander197223d 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.

Eonjay23d 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.

Einhander197223d 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.

Eonjay23d 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.

Einhander197223d 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.

Tacoboto23d 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.

Eonjay22d ago (Edited 22d 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 22d ago
FinalFantasyFanatic23d 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.

kayoss23d ago (Edited 23d 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.

JEECE23d ago

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

kayoss22d 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.

+ Show (3) more repliesLast reply 22d ago
Scissorman23d 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.

shinoff218323d 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.

porkChop23d 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.

BehindTheRows23d ago (Edited 23d 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.

rlow123d 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.

FinalFantasyFanatic23d ago (Edited 23d 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.

+ Show (1) more replyLast reply 23d ago
23d ago
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200°

Sony shares big new PS Plus stat, but not the one we want to see

PlayStation Plus has improved the split of PS4 and PS5 players on its priciest tiers, but Sony continues to hide total subscriber numbers.

Read Full Story >>
theloadout.com
mandf1d 3h ago

lol acting like it’s equivalent to ms numbers

Mr Logic1d 3h ago

Uh...They're definitely not equivalent.

"Microsoft’s Xbox Game Pass service now has 34 million subscribers."

"the total number of PS Plus subscribers across all tiers was 47.4 million"

darthv721d 2h ago (Edited 1d 2h ago )

That PSN number seems like it should be much higher... especially when you consider that PS4 alone has a sell through of over 117m. To not even be at least half that is rather interesting.

To the XB side, having 34m to an install base of roughly 50m (XBO sell through) or even 85m (360 sell through) is a greater percentage of unit to member ratio than PSN.

bloop23h ago

That's not the "gotcha" you think it is Darth.

darthv7222h ago

^^it's not supposed to be bloop.... it's just an interesting observation.

Einhander197220h ago

darthv72

"That PSN number seems like it should be much higher... especially when you consider that PS4 alone has a sell through of over 117m. To not even be at least half that is rather interesting.

To the XB side, having 34m to an install base of roughly 50m (XBO sell through) or even 85m (360 sell through) is a greater percentage of unit to member ratio than PSN."

Have you ever heard of a PC before? I hear they are pretty popular.

fr0sty14h ago

MS started lumping gold subscribers in with those GP numbers... keep in mind.

+ Show (2) more repliesLast reply 14h ago
shinoff21831d 1h ago (Edited 1d 1h ago )

What. Definitely more os plus subscribers but that makes sense due to actual console sales

Darth the difference between the bases are huge your right but you gotta think. Ps players buy more games, where as the Xbox base relies on gamepass for their gaming. So it makes perfect sense

darthv721d 1h ago (Edited 1d 1h ago )

What makes perfect sense though? You say PS players buy more games... so then logically there should be more PS+ subscribers given the increased number of online multiplayer games in the PS4 generation alone. The PS4 was the first time that + was required for online play much like Gold was for 360 users.

Keep in mind we are talking subscribers, not simply XB/PS users. I assume you meant to say offline single player games, which is most likely true as well. That gen also saw a significant increase in games with an online component comparted to the previous gen.

victorMaje1d 1h ago

I for one will be going back to essential at the next renewal. When I feel a game is good & right up my alley, I’ll check trusted reviews & just buy it.

jznrpg23h ago(Edited 23h ago)

I have the top tier until 2028 as they gave me a massive discount for all the years I had left but I’ll most likely go to essential as well. I buy my games but my kids do use the service occasionally. They do prefer to own their games as well since any game can leave the rental service at some point and they don’t like that idea. They mostly use it to demo games then ask me to buy games if they really like it.

RedDevils19h ago

For me, I will cancel it all together but unfortunately I still have it till 2030 lol

meganick23h ago

I would like to see Sony add a fourth tier of PS Plus for people who just want to be able to play games online without any of the perks like monthly games, store discounts, or anything like that, and it should cost $20 annually, $30 maximum. There’s no way I’m paying $80 just to play games online. Even the original $60 fee was too much, and I would often wait for sales to re-up my subscription.

P_Bomb19h ago(Edited 19h ago)

Essential is too expensive, I agree. We’ve got one Essential and one Premium sub. Dropping the Premium when it expires.

gamerz16h ago

Just let my subscription lapse for the first time since 2010. Will sub again every now and then for a month or so to access my old ps+ games but for me it's the end of an era.

DivineHand12515h ago

Let those numbers continue to drop because it is now too expensive. $80 per year just to play online. I noticed they didn't offer any discounts on the subscription or controllers during this year's days of play for the first time in many years and they will feel it when people choose not to renew.

My subscription will lapse next month and it will stay that way until further notice.

KevtheDuff12h ago

There were savings on subs and controllers here in the UK? I bought a controller yesterday in the sale..
It would be weird if those deals were not in other territories too?

160°

Silent Hill Transmission Livestream

Konami has announced that a Silent Hill Transmission will take place on Thursday, May 30, at 4pm PT/7pm ET that will reveal game updates, a "deeper look at the film," and new merch. Join us at IGN to find out what's next for this beloved franchise.

RaidenBlack1d 21h ago

Hope SH2 gets more polish before release.

P_Bomb1d 21h ago

I’m not paying $94 CAD for what they’ve shown me. Looks rough as sin.

Fishy Fingers1d 21h ago

Ive seen better lip syncing during a Punch and Judy show

Sonic18811d 21h ago (Edited 1d 21h ago )

This looks terrible. Capcom should have done the remake 😂 The animations and gameplay looks stiff.

-Foxtrot1d 21h ago (Edited 1d 21h ago )

Okay. I was saying before in another article how SH2 looked better than the last trailer, which is true but damn this looks rough as hell.

I wanted RE4 / Dead Space remake quality

Sonic18811d 20h ago (Edited 1d 20h ago )

I wouldn't buy it for $70 dollars. Maybe when it's on sale.

-Foxtrot1d 20h ago

Yeah full price, deluxe editions, Konami are f***** tripping here.

CrimsonWing691d 20h ago

The characters look terrible to me… like it’s distracting.

repsahj1d 16h ago

I will give this game a chance!!! let's go!

80°

Cheat Provider To Pay Call Of Duty Creator Activision Nearly $15M In Damages

Cheat software provider EngineOwning will pay Call of Duty creator Activision nearly $15 million in damages and legal fees.

Read Full Story >>
twistedvoxel.com
Jin_Sakai2d ago

Cheat providers for competitive games should be illegal.

Rynxie1d 20h ago (Edited 1d 20h ago )

This is what developers and manufacturers should do. I know going after cheat devices/makers is a cat and mouse game, and cost money. However, they can get that money back by sueing these manufacturers of cheat devices. Take a page from Nintendo's playbook.