Spending Fell by $1.78 Billion Compared to Q2 2021, Content Declined $1.71 Billion Port Washington, NY, August 2, 2022 – According to the Q2 2022 Games Market Dynamics: U.S.* report from The NPD Group, overall total consumer spending on video gaming in the U.S. totaled $12.35 billion in the second quarter (Q2) of 2022.
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.
"They want you to believe the devs under them are super stoked to work generative AI into their processes," continued Gaider, "but I assure you what they took as excitement was really a veiled wail of despair not unlike the time that team was informed of their new 'really cool' live service mandate.".
I think anyone with some common sense knew this, im glad i don't support their games anymore, what a sh!t company.
I said this yesterday. AI isn't what we want when it comes to crafting artistry. Alas, these soulless corporate morons don't care about their work, only about cutting corners as much as possible.
Has the rapid growth of Xbox made the ship too heavy? Following the closures of Tango Gameworks, Arkane Austin, and Roundhouse, we explore what the future of Xbox could look like.
This ship was never meant to sail, this ship was made from the get go to sink as fast as possible. It almost feels that they want to lower the standards of quality in the industry so that they can fit in
Xbox has no soul and Phil has no confidence, and it's impossible to say either do when they killed Tango and Arkane Austin.
Everything they've said since has only made them look worse to a point that they're actually less competent than Embracer.
Whe you release something like the series S and expect it not to hurt your business model, and developers have to have parity with games. Then you know Microsoft don't care. Series s is the final nail that broke developers,
There are a boat load of factors both from inside and outside of gaming that could have effected this to the point it's almost difficult to comment on it with writing a dissertation lol.
Less covid restrictions, people back at work, games being more expensive, mtx being out of control, subscriptions, inflation, cost of living crisis, energy crisis etc.
"Despite the declines in spending amid high rates of inflation and following a big period of growth “consumer spending continues to trend above pre-pandemic levels,”
So it's still increasing if you ignore the COVID effect
Well the economy sucks right now, inflation on everything, everyone is getting back outside, everyone is much more busy, console stock is still low, 1st half of this year was really slow, etc etc.
Reason gaming had such a spike was because of the pandemic and people needed pastimes. I'm sure gaming will still thrive.
speaking for myself... yeah i may not be buying as many games as i did then but I just shifted my spending habits over to more odds and ends. Like buying more specialized controllers or the genesis mini 2 and just today the astro city mini V arrived. So i have found other things to spend my $$ on while i await various games that interest me. I even picked up another xbox one x because I needed a plain black one for a project. so I'm doing okay in the mean time.
It doesn't mean we are looking at the equivalent of the 80s market crash again. It's more indicative of:
1) global lock downs being lifted.
2) the currently generation is now in full swing people are still snapping up what little systems are available but less people are buying ps4s, switches and x1 consoles simply because they can't leave the house and want something to do.
3) less big name releases this financial year anecdotally I sit around with mates talking about what games people are excited for and honestly this year there isn't much. We had elder ring which appealed to a large number of gamers but I can't think of much else that really drove the market crazy