Comment on Microsoft Plans Major Job Cuts at Xbox Gaming Division
ampersandrew@lemmy.world 3 weeks agoFrom past articles on why this is happening though, it’s that they had a growth strategy for years, with Game Pass, with Xbox consoles, with studios. Then what changed was the general state of the economy and Nadella’s goals. Game Pass plateaued, the old console model is clearly headed toward obsolescence, and they bought the world’s largest publisher by market cap. Suddenly Nadella decided that you can’t spend what you were spending, and it’s time to take profits.
That’s the official reason, yes.
It has also been the official reason for every illegal merger in the last 50 years.
And somehow almost every merged organization ran into tough financial times about 5 years later (or less), and had to reduce staff, disperse the previous competition’s staff, while filing away the dangerous intellectual property safely out of sight.
But sure, we could assume that Microsoft meant to do the right thing, and that it just went wrong this time.
It was the reporting from Jason Schreier, not the official reason. The official reason is something like “difficult economic conditions” and “we were about to topple over”. The behind-closed-doors reasons were that Nadella made a sweeping change across all of Microsoft that was antithetical to what Xbox had been working on for years, and that Xbox had a much larger spotlight on them after making an acquisition as large as Activision.
There was also COVID screwing up sales projections for the last few years. People were stuck at home for months and ended up buying a ton of digital media such as games to stay sane. Executives are stupid and were somehow shocked when numbers dropped after quarantine ended and people went back to their regular lives. Since then, a bunch of projects or even entire studios have been axed due to “underperforming” because they couldn’t compete sales-wise with a period where the entire world was a captive audience.
It is not something people could really predict.
Games and media sales did indeed go down. But movie theatres (and a lot of live entertainment) never actually went back up. People didn’t “go back to their regular lives”. We got a new normal
Which is why trump et al are working so hard to trigger doom spending and likely another pandemic or three if rfk gets his way.
But the bigger factor is funding. Plenty of indie studios have talked about how hard it is to find funding. Because economic uncertainty means that even a 2-3 year investment is a LOT riskier than it used to be. And that is a death sentence for indie devs but also very alarming for the major publishers who have to answer to investors.
Fuck microsoft and all their bullshit. But this goes way beyond “they bought too many studios and mismanaged them”
KnitWit@lemmy.world 3 weeks ago
Well, perhaps I’m just wrong then. But for me, I see twenty tears of MS buying up studios, sitting on them, and closing them with some sort of excuse about changed plans. It’s always the same though, studio performs well, gets bought, makes no games or games out of their genre, and closes. Call it whatever you want, I call it business as usual.