460°

Brad Hilderbrand explains the reason behind the recent Xbox studio closures

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.

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Christopher27d ago (Edited 27d ago )

The guy confirming what we've all (well, most of us) been saying since the latest purchase.

crazyCoconuts27d ago

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.

RNTody27d ago (Edited 27d ago )

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.

Christopher27d ago

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.

fr0sty26d ago

Xbox releases more first party studios than first party games.

Crows9026d ago

It's actually really simple. CEO don't have it hard at all...they make decisions that everyone else has to accomplish. It's the actual low level employee leadership that makes things work well.

Besides that it is obvious when you use simple math that something was going to break.

+ Show (1) more replyLast reply 26d ago
Lightning7727d ago

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.

badz14926d ago

LOL the cheerleaders for the ABK acquisition were all cheering for CoD to be on GP day 1 and they were adamant that Jim Ryan was scared because of THAT and was fighting for the survival of the PS brand if CoD is taken away or given day 1 on GP. hahaha...now suddenly MS is unsure if they wanna put CoD on GP day 1??

isn't this false marketing? they said ALL (not some) 1st party xbox games will be released on GP day 1 and CoD is now 1st party starting last year! it's right there still on their website.

https://www.xbox.com/en-US/...

lawsuit time??

Outside_ofthe_Box26d ago (Edited 26d ago )

@badz149

People were being blind fans. Things is if you look at things objectively and logically since inception, gamepass from a business perspective was never going to be good idea unless you had hundreds of millions subscribed, which Microsoft was never going to get in a timely manner.

People kept pointing out the cons and people kept having their hands over their ears. I wonder how guys like Orchard and Septic who were rooting for the acquisition to go through like people do when their team makes it to the Superbowl are receiving this news lol

ziggyzinfirion26d ago

@badz149

Looks like MS removed the page.

VariantAEC22d ago

@badz149
And it's gone now... that was fast.
Maybe quote it next time?

+ Show (1) more replyLast reply 22d ago
mkis00726d ago

Just think its a bit insane to close their ?only? Good japanese studio...so much for caring for that market.

Crows9026d ago

And a great studio too....love evil within...still have ghost wire Tokyo in my backlog but will get to it soon enough.

XiNatsuDragnel27d ago

I'm not surprised Microsoft guys are crock nuff said

isarai27d ago (Edited 27d ago )

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.

Zeref27d ago

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.

jwillj2k427d ago (Edited 27d ago )

I’d like to see your reaction to being growing pained out of your job after the launch of a successful product.

Mr_cheese27d ago

Excuses, Excuses, excuses.

If growing pains have been happening for the best part of a decade, they're not growth.

XiNatsuDragnel27d ago

Zeref nii San
I'm sorry but xbox has been rightfully bashed due to constant incompetence

romulus2327d ago

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.

Chevalier26d ago (Edited 26d ago )

Ah Zeref head in the sand like a idiot. Gamepass is a absolute failure like we all told you. Nothing at this point will turn this around. It's not growing pains, the growth is done. Even streaming with 100 million subscribers can't turn a profit and you think Xbox with Gamepass will turn it around? Lol.

It's not a coincidence that Xbox stopped announcing Xbox Gamepass numbers just like they stopped announcing Xbox One hardware numbers and no Series S/X numbers which are behind the Xbox One even.

Remember when we said Xbox customers don't buy games?! Lol. Well this confirmed literally everything we told Xbox fans that said Gamepass was very profitable? Sorry revenues and lack of profit suggest otherwise

Can't wait to see your reaction when their 2nd round of closures happens. Perfect Dark studio and Ninja Theory will next.

Barlos26d ago

No, this isn't growing pains. Xbox has been on the scene for over 20 years.

This is Microsoft not being content with competing, they want to own and control the industry. Buy out as many major devs/publishers as possible so that they own all the IPs. It's only the IPs they care about. Not the Studio's, not the people. They're an insidious, cancerous company and are the worst thing to ever happen to the gaming industry.

shinoff218326d ago

There's no getting back on track. Their releasing games on ps5. That's a wrap.

+ Show (4) more repliesLast reply 26d ago
Tacoboto27d ago

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?

isarai27d ago (Edited 27d ago )

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.

mkis00726d ago

Havent seen any decisions since the buyout that lead me to believe MS knows what to do with them either . Easiest one would have to be the fallout 4 upgrade...with minimal effort it could have been a big win for leadership...but nope we got a standard Bethesda release for a patch.

shinoff218326d ago

Tacoboto. Bethesda greenest it to be made. Ms greenest the release. Remember phil telling us he don't know what happened because it polled well behind closed doors. Nice try on that one with redfall. In the end it was on Ms not Bethesda

Einhander197227d ago

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.

Christopher27d ago

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.

Einhander197227d ago

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.

Christopher27d ago

***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.

Einhander197227d ago (Edited 27d ago )

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"

shinoff218326d ago (Edited 26d ago )

Thats what I took from the article. Maybe we're mistaken Christopher lol

It saying why it failed puts enough blame on Ms imo. Eben if they didn't come put and say fk Ms etc.

Christopher27d ago (Edited 27d ago )

***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.

Einhander197227d ago

Christopher, if Microsoft hadn't made Game Pass and bought a bunch of publishers would this article even need to exist?

Christopher27d ago

***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.

Einhander197227d ago (Edited 27d ago )

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.

Chevalier26d ago

Why the excuses here? Microsoft did one thing no other company can do which is subsidize Xbox with these insane purchases in hopes of suffocating the industry out in hopes to be the last one standing so they can charge whatever they want.

How are you excusing this crap even and putting your head in the sand here? It's pretty clear who is at fault here for the situation they built and put themselves in. It's them trying to push everyone around with cash that no one else can compare.

They knowingly did all that and now are trying to pretend the market is to blame? Lol. That is absolutely rich irony. That you can't see the forest for the trees here too.

TiredGamer27d ago

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.

XiNatsuDragnel27d ago

Again terrible excuses in the 1st place

Christopher27d ago

***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.

Tacoboto27d ago

Christopher, you're fighting a block wall here - Ein will continue twisting and contorting any remark to fit his self-created narrative.

Einhander197227d ago (Edited 27d ago )

"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!

+ Show (3) more repliesLast reply 26d ago
MrDead27d ago

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.

shinoff218326d ago

Mr dead spot on as fk. Ms has been doing this it's whole time around.

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50°

Eternal Damnation Interview With Soham Jaiswal, CEO, SD Games

Recently Gareth at Skewed and Reviewed spoke with Soham Jaiswal, CEO, SD Games about the pending Eternal Damnation game. The game is a hybrid of RPG and RTS and cast players as a Spider.

190°

Why Microsoft Putting Black Ops 6 On Game Pass Is The Ultimate Test

By putting Black Ops 6 on Game Pass, Microsoft plans to gauge its growth, pricing, and monetization changes, at the cost of less game sales.

rlow18h ago

If they have follow up games that are bangers, then this strategy will work. But if it’s Call of Duty followed another dead period then it won’t last.

crazyCoconuts5h ago

From MS financial perspective I think it may be the opposite.
A year of GamePass on PC is less than the price of two full price games. For all the people that would have bought COD for $70 but instead started subbing for GP, MS will get an extra $50/year which is good.
However, for each banger that MS puts out, that's lost potential revenue because the GP sub won't need to buy it.
So it only makes sense where the new GP customers would have otherwise not spent more money with MS... Which is the case if MS puts out low quality shovelware.

rlow13h ago

If you’re looking at the short term you are correct. But if Xbox can have multiple bangers then subscriptions should increase. Which is what they want, recurring revenue.

Sonic18815h ago

I don't see it working if Call of Duty makes less money and profits over time from gamepass 🤔

blackblades5h ago

I dont understand why have it on it when we all know it sells with the name alone. Seems stupid to lose so much sales and $ just to have it on game pass. They basically shooting themselves in the foot with a already injured foot from all the other times they shoot themselves in the foot.

CrashMania3h ago

@blackblades, that's my exact point, even on xbox where most software sells poorly CoD still sells millions, but the thing is, if you don't put it on GP you kinda shatter the whole idea they've build GP up to be, they've dug this hole themselves.

I think it might tick up subscribers a bit, but warzone is already free and gets millions of players regardless of GP. But where will those extra subs come from? Xbox sales are dropping like a rock, PC gamers are very firmly rooted in Steam and will just buy it there.

Tacoboto3h ago

@black

If they don't include it on Game Pass, they lose the claim of First-Party Day-One on Game Pass, and thus would begin the slippery slope of what's-ok-to-not-include and the devaluing of the service, and further sinking Microsoft/Xbox's already tarnished reputation.

Stuck between a rock and a hard place and this move buys them time to work out more future-math.

crazyCoconuts2h ago

I still expect a price increase in GP to compensate but who knows. With all the factors in play like COD points there are too many variables for someone on the outside to predict what will happen. I assume they have a forecast model where this all looks peachy.

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Garethvk7h ago

When the game does not hit 1 Billion in revenue in under two weeks they will wonder why and the next thing you know; Season Updates will no longer be free.

Noskypeno6h ago

Yup, the CEO needs a new yacht and private jet

Abear214h ago

Yeah I expect paid DLC and season pass in your face, now you are buying for a game you are renting

purple1016h ago

subscribers go up, execs celebrate win, get bonus, price goes up, subscribers go down,

execs dont care, got their bonus,

MrDead5h ago

If it works CEOs and shareholders get a payday and if it doesn't even more studios get closed by MS so CEOs and shareholders get a payday.

Elda4h ago

It will sell on PC & PS but as long as COD is for rent on Gamepass it will not sell well on the XB platform. Most folks such as myself that like COD just for the campaign would rather rent it for that month instead of paying $70 plus tax for the game.

IAMRealHooman4h ago

Your smart.
its 70 for base plus 10 to 20 for a season pass plus another 30 for there better season pass,

darthv724h ago

...now you are finally getting how to use GP. No commitments, just play what is offered. if you like it so much and want to keep a copy for yourself... you can buy it when you want to. I used to buy games based on if they looked appealing and have been burned many times on things. With this, I can try before I buy. And I have actually bought several games after having rented them in the service. It literally is like the old days of renting only you get the whole store instead of pay per rental.

Elda4h ago

I've been knowing how to use Gamepass. I sub the service yearly & I play games on the service that I don't have to pay the full price for such as Persona 3:Reload. I mostly play & pay for games on my PS5 but if a game lands on GP that I'm interested in playing & I don't have to buy a copy for the PS5 I'll definitely play it on Gamepass.

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160°

Why is Steam Blocked in Vietnam? Government Shares Reason

Finally, the Vietnamese government has officially responded to Steam being blocked in the country.

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blacktiger2d ago

AMAZING! Thank You Gabe, stand for freedom of speech!!!!

PRIMORDUS2d ago

VPN to buy games, fuck that if it's allowed or not, or just use a VPN and torrent what you can.

seanpitt231d 13h ago

I just cannot believe we haven't had a game from them this generation nearly 4 years in.. crazy!

Knightofelemia1d 18h ago

If the game is crap then yes there will always be negative feedback it comes with the territory. It's called word of mouth or welcome to the internet. Where the truth about a game comes out really fast whether the game is good or crap. If you can't handle the criticism because of a game then why publish the game. Why should people who never criticized or even played the game be punished? Vietnam has some really screwed up laws block Steam because they don't answer us rule. And going on a witch hunt with Steam please. Where's the proof, where's the evidence of this witch hunt. Somebody is butt hurt and has a Vietnamese Karen leading the witch hunt.