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."

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purexbox.com
just_looken21d 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.

purple10121d ago (Edited 21d 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

Abear2121d 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.

Cacabunga21d 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.

Eonjay20d 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.

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-Foxtrot21d 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.

Inverno21d 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?

FinalFantasyFanatic21d 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_looken21d ago ShowReplies(2)
Profchaos21d 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

anast21d ago

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

21d ago
kayoss20d ago (Edited 20d 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.

JEECE20d ago (Edited 20d 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.

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Eonjay21d 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.

21d ago
NotoriousWhiz21d ago

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

Eonjay21d 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..

Barlos21d ago (Edited 21d ago )

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

Tacoboto21d 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.

Einhander197221d 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.

Eonjay20d 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.

Einhander197221d 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.

Eonjay20d 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.

Einhander197220d 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.

Tacoboto20d 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.

Eonjay20d ago (Edited 20d 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 20d ago
FinalFantasyFanatic21d 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.

kayoss20d ago (Edited 20d 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.

JEECE20d ago

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

kayoss20d 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 20d ago
Scissorman21d 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.

shinoff218321d 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.

porkChop21d 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.

BehindTheRows21d ago (Edited 21d 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.

rlow121d 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.

FinalFantasyFanatic21d ago (Edited 21d 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.

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21d ago
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40°

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.

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twistedvoxel.com
Garethvk1h ago

We can hope. Especially if the rumors of Cillian Murphy and Alaska are true.

Relientk771h ago

Assassin's Creed Hexe is what I wanna hear about most. Yes I wanna play as a witch with magic during the 16 century witch trials in Germany (as per rumors). Sign me up

Huey_My_D_Long1h ago

Yeah, Hex sounds amazing to me as well, and I've been playing since AC 1. I'm real curious how are they gonna fit the magic into the game, maybe in similar way the dlc introduced gods and god abilities. but I love that I've heard its gonna have a horror vibe.

Garethvk1h ago

Hopefully it is full of good stuff.

Demetrius50m ago

Hopefully gameplay of ac shadows or star wars outlaws, if they finally announce the new far cry I'm definitely getting that, far cry still fun af and gorgeous games, yeah ubisoft has their faults but atleast they're not copying souls like games their titles still have identity

OtterX38m ago(Edited 34m ago)

I'm going to be an outlier amongst the rest of these comments.... give us something NEW! I'm pretty burnt out on Ubisoft franchises, unless you're giving us a new Rayman game!

*Edit - imagine what they could do with a Rayman 3D game in this day and age. I say now is the time to revisit the series.

Garethvk37m ago

Beyond Good and Evil 2: It is coming really; we promise.

OtterX35m ago

Their microtransaction monetization scheme on it will lie somewhere between good and evil!

Haha JK.... it'll be completely evil. 🙃

300°

PlayStation Aims to Entice PC Gamers to Play Single-Player Sequels on Consoles

Sony aims to release live service PlayStation games day & date on PC and PS5, but single-player games will have more "strategic approach."

-Foxtrot10h ago

How? I’m sorry but how when they literally port their games to the PC now after not even 2 years, it’s rumored GoW Ragnarok is next.

The best thing they could have done is focus on the generation before with PS3 / PS4 titles and when it got to the PS6 then start porting PS5 games so people will want to get the sequel on the new console

Now PC gamers just wait it out because they know it’s coming

Redemption-646h ago

Rock Star does the same thing. Release 1st on consoles, wait a year or two then release on PC. It's clearly a strategy that works for them.

They don't need a lot of PC gamers to move to Playstation, but they just need a few who would also buy into it and possibly double dip. There are some very unhappy gamers on Twitter, who wanted to hear day and date for all games.

Cacabunga4h ago(Edited 4h ago)

Fox
Your analyse is not accurate..

If sony keeps things the way they are then they will grow the business. Some pc gamers who really liked God of War for example might buy PS4 or 5 to play Ragnarok. Same if they announce ghost of tsushima 2 or a new Ratchet game.

-Foxtrot1h ago

Rockstar?

Yeah I loved playing Red Dead Redemption on PC…….

@Cacabunga

I highly doubt it, PC gamers have their setups, if they didn’t budge for years to get a console despite all the cool exclusives then they aren’t going to budge now knowing a new PS5 game will get a port 2 years later

Crows9030m ago(Edited 30m ago)

@cacbunga

Basically you're functioning under the assumption that PC players are impatient, rich and stupid.

Most will not budge. But if the hype is real enough they'll get a few. But those few won't actually be invested in the platform.

thorstein6h ago

How?

According to Sony, by co launching live service games like Helldivers2 day one, then enticing PC players to want to play sequels on the console for SP games.

That's how. If you play Ghost of Tsushima and Sony launches GoT 2 on PS later this year, you're more apt to want to grab the console and play the sequel instead of waiting.

Domkakop4h ago

Don't think you have a grip on how PC players consume.

ThinkThink4h ago

Yeah, pc players are the most patient of players. They will just wait for the game to come to pc.

Tacoboto3h ago

You're just spitting back out the Sony PR line.

PC-first and PC-centric gaming is a different beast. Helldivers 2's popularity and GoT's popularity are because they're good solid games, not because they're from PlayStation publishing.

It's the same PlayStation that put Helldivers 2 for sale internationally, then pulled their PSN-Steam removal card. The same PlayStation that released Returnal with UE4's dreaded shader stutter. The same PlayStation that released TLOU Part 1 in a broken state.

If Sony's PS4 slate of titles didn't convince PC gamers, if their current PS5 titles still don't, ports of games they've had *years* of knowing and reading and hearing about aren't going to convince them to finally buy a console.

Don't fall so easily for the same PR BS that fabricates quotes from their own studio heads.

VincentVanBro3h ago

Nah I’ll wait for the best version on PC lol

JEECE2h ago

I mean that's certainly the thinking, but for most PC gamers that just won't work. Like in a rare circumstance if someone was already on the fence about a console that might get them to take the plunge and buy a PlayStation, but it will be the exception rather than the rule.

-Foxtrot18m ago(Edited 17m ago)

PC gamers are super patient

There's no f****** way, for example, they are going to get a PS5 the moment Ghost of Tsushima 2 is announced just because they played the PC port of the first game

The mindset?

"Ah cool GoT2 has been announced, really enjoyed the first game. Anyway I'll just play on the dozens of other games I have while I wait for the obvious PC port from Sony in like 2 years"

Not a chance they'll all wait now.

+ Show (3) more repliesLast reply 18m ago
romulus232h ago

You're mistakenly speaking for all PC gamers, there are bound to be some people who are not willing to wait and for Sony those are potential console buyers.

helicoptergirl10h ago(Edited 10h ago)

"While Helldivers 2 was released day and date on both PS5 and PC, don’t expect single-player narrative-driven games to be released in the same boat by Sony anytime soon. - This was confirmed by PlayStation’s soon-to-be co-CEO Hermen Hulst in Sony’s business segment presentation"

There you have it. Won't be 'day and date' single player games on PC anytime soon or for the forseeable future. They understand single player games are Playstation's backbone.

CrashMania9h ago(Edited 9h ago)

So much for the nonsense narrative that playstation is somehow failing so they are going to immediately start releasing every single game day and date on PC lol.

Elda6h ago

That is what the competition has to deal with.

Domkakop4h ago

Yea people tend to project the behavior of their favourite failing publisher onto Sony. Sony is not a failing publisher

Elda6h ago

Agreed. First & foremost Playstation not only wants to sell their AAA first party games but their gaming consoles to play them on that is why their AAA first party games come to PC later after it sells on PS consoles.

ocelot076h ago

I was told that Playstation was doing so bad on here and on X that Helldivers 2 was going to release on Xbox and Sony was going to start releasing all games on pc day and date with playstation. Why do people constantly lie on the internet!!!!!

Hofstaderman6h ago

Sour XBOX fanboys trying to vindicate Phil's dumbass decisions.

6h ago
Fishy Fingers6h ago(Edited 6h ago)

We've gone from you'll never see PS games on PC, to you'll never see any PS games day one on PC, to you'll see some PS games day one but have to wait for others.

I mean, its kinda looks like it's heading one way no? That "wait" is going to get shorter and shorter.

Fishy Fingers5h ago

It's happening.

God of War 2018 - 4 years
Horizon Zero dawn - 3 years
Horizon Forbidden West - 2 years

XiNatsuDragnel5h ago

That's a smart move because at the end of the day playstation is a hardware business and need to sell hardware folks

Software_Lover5h ago

Meh, I'm done with consoles altogether.

Bathyj4h ago

Considering the amount of bangers PlayStation and Nintendo make, your name doesn't sound very apt.

darthv724h ago

Well I think he means that on PC, all software eventually is playable on it. Which is true.

Consoles just are a convenient way of playing some sooner than later.

ApocalypseShadow2h ago

Darth, all software eventually is playable on PC through emulation and theft of games. You forgot that part. It's not through legal means.

andy851h ago

Most, not all. Unless you're talking emulation

Mad_Matt1h ago

Apocalypse- You consider emulation theft of games? LMAO
Way to shill for corporations.

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