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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just_looken20d 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.

purple10120d ago (Edited 20d 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

Abear2120d 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.

Cacabunga20d 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.

Eonjay19d 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 19d ago
-Foxtrot20d 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.

Inverno20d 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?

FinalFantasyFanatic20d 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_looken20d ago ShowReplies(2)
Profchaos20d 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

anast20d ago

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

20d 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.

+ Show (3) more repliesLast reply 20d ago
Eonjay20d 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.

20d ago
NotoriousWhiz20d ago

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

Eonjay20d 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..

Barlos20d ago (Edited 20d ago )

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

Tacoboto20d 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.

Einhander197220d 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.

Einhander197220d 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.

Eonjay19d ago (Edited 19d 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 19d ago
FinalFantasyFanatic20d 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...

kayoss19d 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 19d ago
Scissorman20d 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.

shinoff218320d 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.

porkChop20d 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.

BehindTheRows20d ago (Edited 20d 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.

rlow120d 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.

FinalFantasyFanatic20d ago (Edited 20d 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 20d ago
20d ago
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210°

Steam Account Transfer Via Will on Death is Not Permitted, Valve Confirms

In case you were curious, a Steam account transfer via will is not permitted according to an official response from Valve.

anast1d 5h ago

The games are theirs. People just pay to ride the ride.

Skuletor12h ago

Would be nice if the article's writer looked into and reported whether other digital game libraries could be transferred over via will (Xbox, Playstation, Nintendo, EGS, EA app, GOG, Ubisoft Connect, Rockstar Launcher etc) instead of this half-baked piece but it's probably the same for all of them anyway

Kornholic12h ago

This seems like a way bigger issue than mandatory PSN account linking for PlayStation games.

So where is the outcry?

Skuletor11h ago

It's not like PlayStation is doing any different.

"You may not sell, buy, trade, or transfer your Online ID, Account or any personal access to PSN Services through any means or method, including by use of web sites."
https://www.playstation.com...

NotoriousWhiz11h ago(Edited 11h ago)

It's not like your account just stops working when you die. Include your email, account id, and password in the will (including the password to your email) and your survivors should have no problem using your games.

anast9h ago

PC gamers are a different lot. They don't mind renting their games forever, they don't mind spending money on overpriced equipment, and they don't mind fiddling with settings for hours before they even play the game, but linking a PSN account demands a riot. This is hard to understand, but then again, we all have to draw our lines somewhere.

Skuletor8h ago

You sure talk a lot of nonsense.Go look up the percentage of digital sales compared to physical sales of PS5 games, then tell me again about "renting" games.

mandf7h ago

Overblown funny and 100percent true

anast7h ago(Edited 7h ago)

There is no option at all to buy a physical copy of a PC game... And more people game on consoles for the reasons that make PC gamers a different lot.

VIK21215h ago

it's not so much the linking but the fact that certain countries aren't allowed to access psn...

VIK21215h ago

@anast I have a disc ps5 since launch, initially I bought some disc games, but I can't be bothered to walk to a physical store nowadays... I just buy the titles when they go on special sale or gray market store like CDKeys...

DustMan5h ago

PSN was a different story altogether. It kept people who bought the game from playing in countries that PSN wasn't supported. I never understood the issue anyway.

I don't know if PC stuff is overpriced considering that you can buy a new video card with the same amount of money you'd spend over 5 or 6 years paying to play games online with a console. I'll never pay double to use the same connection. That is what I'll never understand about console gamers. "let me pay an extra hundred & twenty dollars a year to use the same internet I pay for monthly and use on literally every device in my home for free....except for my Playstation"

Extermin8or3_4h ago

@Skuletor about 50-60% of sales are digital for most games. Meaning 40-50% are physical....

anast4h ago

@VIK

You might not but you are not the expectation that creates a universal.

Skuletor3h ago

@Extermin8or3_
Right and where are you getting that information from?
https://www.statista.com/st...

@anast

"Renting games"
In the fourth fiscal quarter of 2023, approximately 77 percent of Sony Corporation's PlayStation gaming sales were generated via digital downloads.

"overpriced equipment"
Some people are willing to pay a premium for better performance, the way you keep talking about the PS5 Pro on N4G proves you're a hypocrite in that regard but whatever, lol

"fiddling with settings for hours before they even play the game"
Most pc games will give the option to scan your system to choose recommended settings or start with moderate settings that will run the game fine but you're free to mess around at your own leisure, to improve performance or quality if you wish to. For those that don't want to, there's free software that can do that for you, such as Nvidia's Geforce or AMD's AMD Catalyst. Geforce Experience even gives you the option of choosing whether to prioritize performance vs image quality with a simple slider for easy optimization, it's not rocket science, like you try make it out to be.

"linking a PSN account demands a riot"
Playstation selling Helldivers 2 in regions without the legal means to create a PSN account by Sony's own standards, then telling people in those regions that already bought the game that they can no longer play the game, isn't a cause for concern? Though you've already heard about that but keep going along with your own narrative because of your weird vendetta against PC on here.

This is hard to understand, but then again, we all have to draw our lines somewhere.

+ Show (6) more repliesLast reply 3h ago
thorstein11h ago

So just give your progeny the passwords.

OtterX10h ago

Keep the password sealed in the Will, only to be opened after death. :)

Aphrodia8h ago

Right? How are they gonna know you are dead?

FinalFantasyFanatic5h ago

The only way they will know is when an account is active for 300 years, lol.

Show all comments (30)
400°

[Exclusive] Xbox Reaches Agreement With Batman: Arkham Trilogy Creators For A New AAA Game

Ex-Rocksteady directors' Hundred Star is collaborating with Xbox Game Studios Publishing for its first-ever AAA game.

Lightning771d ago (Edited 1d ago )

Highly doubt it'll be an actual Batman game that IP belongs to WB Games along with other DC property.

They're making an action adventure game. IMO I think it needs to be another Marvel game despite MS already have Blade as that action Marvel game. Dead Pool? Punisher?

Realistically it'll probably be a new IP entirely.

The_Hooligan23h ago

I agree with you. I think I'll be a brand new IP. Now it could be a superhero themed, kind of like infamous. Speaking of which, Suckerpunch needs to make one after Ghost 2.

neutralgamer199223h ago

would love a infamous collection for ps5/pc

Lightning7722h ago

I definitely think it'll be super hero themed game 100%. Something MS needs in their portfolio.

ThinkThink20h ago

Please, no more super hero games.

PhillyDonJawn20h ago(Edited 19h ago)

Dead Pool or Punisher would be amazing!!!
Don't tease me like that man lol. I see them making a new IP that's like an arkham knight clone

Dirty_Lemons16h ago

I loved the old Punisher game back in the day. Those executions never got old.

porkChop15h ago

I don't think it needs to be Marvel. It needs to be a totally new IP. That's what Rocksteady should have done after Arkham City. They've pigeonholed themselves as DC devs.

+ Show (1) more replyLast reply 15h ago
MIDGETonSTILTS1723h ago(Edited 23h ago)

I hope these devs needed support to start/finish (like Stalker 2), vs are basically done with the game but wanted to secure an exclusivity-bonus because they know Xbox needs a system seller (like Titanfall).

It’s a bit strange that they’d rather invest in this game than Tangoworks’ TWO canceled projects; or just trust a single dev from their existing massive stable of talent to emerge with a system-seller themselves anytime soon.

Either way, it is just cool that we’ll likely get a new IP from the geniuses behind the Arkham Trilogy. I wonder how creative they’ll get now that they aren’t married to an established franchise.

darthv7223h ago

This is about the former co-founders of Rocksteady and their new studio. So naturally it makes people think its Batman related with the way its worded, even though its not.

-Foxtrot22h ago

Exclusive? Sure

This year alone Microsoft has changed their plans so much with Xbox regarding multiplatform releases as they step closer to just being a full blown third party publisher and it's only been 4-5 months, imagine where we'll be once this game is finished. It will be a completely different landscape.

ThinkThink20h ago

I don't think MS will ever go completely full 3rd party with all of their games. I can see them looking towards expanding their own mobile store and moving into Mac as ways of expanding. I'm sure ms will bring more exclusives over to ps and nintendo, but I don't think it'll be as many games as you think it will. I hope I'm wrong.

Lightning7719h ago

The ever contradictions thoughts and actions of MS definitely says otherwise MS changed up so much on the past 6 months of the year I lost count.

Though I'm more declined to believe they also won't go full 3rd party also.

But.

This year they're having Renaissance a super bowl of gaming with Gamepass this year. BO6, older ABK games, Avowed, Indy and other 3rd party exclusives all to grow and expand gamepass. If these games don't grow the service or grow only a little bit. Then you can fully expect MS to hit the red button and put everything everywhere. Satya will have full Xbox take over doing what he wants from that point on next year.

It's up to Xbox to advertise these games and gamepass in the next 6 months or so get the word out.

Profchaos19h ago

The more the news evolves the more I'm inclined to believe we will see MS embrace full third party status but not call it third party in their word soup ways.

It will be Xbox everywhere plays best on a Xbox.

Next gen Xbox is rumoured to be a reference design similar to the 3d0 where any company can make and sell it.

If you're offloading hardware costs to a third party yet still profiting from the games then you've cut out losses on the hardware you still have a store front that users can use and still make a 30 percent cut on that.

Your games sell for a profit on PS and Nintendo platforms and on Xbox reference hardware along with PC

You lose .kney on DLC and games sold on a competitor storefront they are seemingly already comfortable with this.

The ms bean counters are coming for the ROI that was promised they don't care if they kill the brand as it stands Xbox was never a profitable business it was always just done for reputation

PhillyDonJawn19h ago

@Lightning the would end the console then. No one would buy Xbox over PS at that point cause now you get both with just a PS. If GP flop for them, Logically, rolling back on GP would be the smarter than to do. No more day 1 title. Less quality titles. They'd lose subs but people would go back to buying the games.

Lightning7717h ago

@Philly They could scale back gamepass put Indies only, AAA 1st party games coming 4 to 6 months from release. The thing is MS will have to tell their fans to buy their games again and that's gonna take years and years to condition them to buy games again. MS will lose money from that also. They'll lose out on gamepass revenue, lose out on games sales because their fans don't buy as many games anymore.

I can't see them scaling back or axing gamepass it does make them allot of money, they just want more money from it. They're not gonna condition their fans to start buying games either.

As I said they'll go full 3rd party and yes you ate right, if they do that then there would be no reason to buy the next Xbox. I know j won't be, you better hope the next 6 months they advertise the games and GP there little hearts out because this could be it.

ThinkThink5h ago

Like, I can see them porting flight simulator, but not the Forza games.

I can see them porting state of decay 3, but not halo or gears.

I think sony will get blade, doom and elder scrolls 6, but not perfect dark or fable.

+ Show (2) more repliesLast reply 5h ago
purple10121h ago

Spawn (as well as master chief) are the only characters I associate with Xbox. Are there more I can’t remember?

rlow121h ago

Gears is another big game one.

purple10121h ago

Yeh big game, do you know the name of the lead character. Or team of lead characters. I don’t

rlow120h ago

Marcus, Dom, Cole Train. And I can’t remember the fourth.

Profchaos19h ago(Edited 19h ago)

Also the chick from gears 5 seems to pop up on all their modern advertising I can't remember her name either.

Cars also feature heavily in a Xbox ad it's always master chief front and centre with cars and maybe a gears character hanging around

Show all comments (28)
210°

Resident Evil Zero and Code Veronica Remakes are reportedly in the works, not Resident Evil 1

Industry insider Dusk Golem reveals that there is no Resident Evil 1 Remake in the works. Instead, Capcom are reportedly in active development of Resident Evil Zero and Code Veronica.

-Foxtrot2d ago

RE Zero would be better to do first over RE1 because they can tie the story into RE1 more.

The original RE Remake was weird because Rebecca never mentioned anything about what happened in Zero and it felt so disjointed because Zero was developed during the Remake and they clearly didn't share any notes with one another.

Cacabunga1d 4h ago

Wise decision. 2 of my favorites!

repsahj17h ago

RE Zero is one of my favorite game on gamecube!

Knightofelemia2d ago

Give me Dino Crisis dammit Capcom

TGG_overlord1d 9h ago

And all it took was +24 years + a phone call from me lol.

GotGame8181d 1h ago

LOL! A phone call from you? ROFL! They have been remaking RE games for YEARS! It was a matter of time!

1d 4h ago
Show all comments (18)