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Game Studio Flight From Microsoft A Sign of Troubles?

Posted by Zonk on Monday October 15, @03:13PM
from the watch-out-for-the-stingers dept.
Newsweek's LevelUp blog continues to produce some highly interesting material. Today they have up a look at the 'flight' of game studios from Microsoft's corporate umbrella. BioWare's purchase by EA distances it a bit from their cosy relationship with Microsoft, as does Bizarre's purchase by Activision. Bungie's departure from the company itself goes without saying. So what does all this mean? Is this a sign of troubles in Redmond, or just more fallout from the huge undertaking required to get the Xbox 360 to the position it has today? "For us, the flight of the Killer B's is a clear indication that Microsoft as a whole is still shell shocked not only by the massive losses in the Xbox division, but also more importantly by the poor showing of Rare, which has to rank as not only one of the Microsoft's least successful purchases, but as quite possibly the worst acquisition in the history of gaming. Microsoft paid $375 million in cash for Rare, and based on the modest revenues from its ensuing titles--a Conker's Bad Fur Day remake, Grabbed by the Ghoulies, Kameo, Perfect Dark Zero and Viva Pinata--all they've got to show for it is that proverbial lousy T-shirt, completely stained with red ink."

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  • Bioware? Bizarre?

    (Score:3, Insightful)
    by EveryNickIsTaken (1054794) on Monday October 15, @03:17PM (#20986083)
    Since when was either Studio owned by Microsoft? This is such a fluff piece for a slow gaming "news" week.
    • Re:Bioware? Bizarre? by MagusZeal (Score:1) Monday October 15, @03:21PM
    • Re:Bioware? Bizarre? by gorbachev (Score:3) Monday October 15, @03:26PM
    • Re:Bioware? Bizarre?

      (Score:5, Insightful)
      by tbannist (230135) on Monday October 15, @03:33PM (#20986317)
      No, it's definitely not a fluff piece. It's overanalyzing a trend of 3 items. And the point isn't that Bioware and Bizarre were owned by MS, but that they had close partnerships with MS and were making the games that sell 360s.

      If they go platform neutral that's a large blow to Microsoft's Third Party development and the release of Bungie is a huge blow to Microsoft's internall developed games. Overwall it reflects poorly on the 360s continued success. It might be a blip or it might be the first signs of major trouble in Microsoft's games department.

      To put it more bluntly, the idea is that if Microsoft were on the ball and interested in developing first part titles for the 360, they would have kept Bungie and bought both Bioware and Bizarre. As it is now, they are leaving themselves very much at the mercy of their third party games developers. Hoping that they will stick with the Xbox line of products. If the PS3 ever surpasses the Xbox in sales (I know, not terribly likely at this time), they could end up royally screwed.
    • Re:Bioware? Bizarre? by ECMIM (Score:1) Monday October 15, @03:46PM
    • 2 replies beneath your current threshold.
  • Don't dis

    (Score:3, Funny)
    !Viva Pinata!

    That's the only reason my boy swaps the XBox on, in place of the Wii.

    We are a market of ONE!
  • The story behind Rare?

    (Score:3, Interesting)
    by lpangelrob (714473) on Monday October 15, @03:20PM (#20986123)
    What happened with Rare? I remember when Nintendo announced that it had let Rare go from 2nd party Nintendo developer to Microsoft exclusive developer. I figured that would be the "white flag" moment for Nintendo.

    They took with them the underrated Conker's Bad Fur Day series, anything Perfect Dark, Banjo-Kazooie (I think)... arguably the best games development studio behind Nintendo itself. What happened?
    • Re:The story behind Rare? by Senjutsu (Score:2) Monday October 15, @03:23PM
    • Re:The story behind Rare?

      (Score:4, Interesting)
      by twistedsymphony (956982) on Monday October 15, @03:30PM (#20986275)
      (http://thoughthead.com/)

      They took with them the underrated Conker's Bad Fur Day series, anything Perfect Dark, Banjo-Kazooie (I think)... arguably the best games development studio behind Nintendo itself. What happened?
      They neglected to take with them most of the developers that made those titles so great... IIRC most of the core staff behind Rare in the Nintendo days now work under Free Radical which hasn't done much beyond the "Timesplitters" series, though not a blockbuster franchise, it's certainly more well received than Rares offerings over the last 5 years. They're also the ones behind the upcoming game: Haze...

      When Microsoft bought rare, all they really bought was the name and some semi-popular franchses. Honestly the games they've made for the DS have probably made MS more money than the Xbox branded stuff they're put out. I'd be impressed if they've even as much as made half of the original investment back at this point.
    • Let's jump in the way-back machine-reality check by gmezero (Score:2) Monday October 15, @03:44PM
  • Rareware

    (Score:2)
    by Applekid (993327) on Monday October 15, @03:22PM (#20986143)

    Microsoft paid $375 million in cash for Rare, and based on the modest revenues from its ensuing titles . . . all they've got to show for it is that proverbial lousy T-shirt, completely stained with red ink
    They seemed to do pretty well when they were playing nice with Nintendo. I wonder what is it Nintendo was doing for Rare that Microsoft isn't, or what Microsoft is doing that Nintendo didn't.
    • Re:Rareware

      (Score:4, Insightful)
      by Sciros (986030) on Monday October 15, @03:42PM (#20986457)
      Nintendo made them DO STUFF. I remember reading something in 2001 where Rare complained that Nintendo was "working them too hard" or something along those lines. Well, at least they had something to show for it. And by "something" I mean games that set new standards in their respective genres, from Goldeneye for FPS's to KI for fighters to DKC for side-scrolling platformers, and everything in-between. Rare kept the N64 afloat because their games were semi-frequent and they all were pure awesome.

      Now it seems Rare has gotten lazy, and MS let that happen. Nintendo's probably been laughing their butts off at all this. AS IF Rare could have made $375 mil for Nintendo if they'd been this lazy releasing games for GCN.
      • Re:Rareware by aichpvee (Score:1) Monday October 15, @09:36PM
        • Re:Rareware by Sciros (Score:2) Monday October 15, @11:53PM
      • Re:Rareware by DDLKermit007 (Score:2) Monday October 15, @10:29PM
    • Re:Rareware

      (Score:4, Insightful)
      They seemed to do pretty well when they were playing nice with Nintendo. I wonder what is it Nintendo was doing for Rare that Microsoft isn't, or what Microsoft is doing that Nintendo didn't.

      And yet there was a reason Nintendo was willing to part with them. Remember, Rare was not an independent company - MS bought them from Nintendo.

      Rare's output was dropping for years before the sale. In their last three years of development for Nintendo, they released five home console games: Donkey Kong 64, Perfect Dark, Jet Force Gemini, Conker's Bad Fur Day, and Starfox Adventures. Of those, only Perfect Dark could be called a legitimate hit. (DK64 sold well as a pack-in game, but it wasn't what you'd call a top quality game.)

      A lot of people were pretty shocked at the price MS paid for them. This isn't just a 20/20 hindsight thing - many people said at the time that it was a dumb purchase. There were some hardcore hopefuls who thought otherwise, but this was not a purchase that was universally praised at the time.

      And while this doesn't really apply to a studio like Bungie that's buying themselves, whenever one publisher is all too willing to dump a development studio onto another publisher, you have to ask yourself why. It's always a big red flag, and it seems obvious now that Nintendo knew something that MS didn't. Not about how to run Rare, but about how far Rare had really fallen.
    • 1 reply beneath your current threshold.
  • by Joe The Dragon (967727) on Monday October 15, @03:33PM (#20986311)
    Was M$ forcing them to make new games vista only? and the game coders do not want to piss of people who still have XP.
  • So?

    (Score:2, Insightful)
    by coolhandlucas (1174225) on Monday October 15, @03:35PM (#20986335)
    Microsoft failed to keep first- and third-party developers happy? THAT'S news ... The BioWare thing is a tragedy, but lack of console exclusivity is the least of my worries there. I don't care what console it comes out for, if I see "EA Games Presents Mass Effect 2009" I'm getting out the torches. The Rare deal was a stupid decision that was more about keeping the brand away from Nintendo, and it's old news anyway. As a fan of Bungie since the first Marathon, I am absolutely ecstatic that they're going independent again and wonder how many of their firstborn it cost them (really, though, how the HELL did they pull that off?). PGR is in my opinion a B franchise and I can't see it hurting them very much. Added up, there seems to be a trend of Microsoft failing to buy innovative development studios before somebody else does ... given history, that may be the best news of all. As to the future of the Xbox, I don't really care. As long as this fight continues, we (the consumers) win.
  • by Trelane (16124) on Monday October 15, @03:41PM (#20986437)
    (Last Journal: Monday March 20 2006, @09:33PM)
    That about says it all. Does Microsoft still own Newsweek?
  • Xbox Losing Money?

    (Score:4, Insightful)
    by Cheeko (165493) on Monday October 15, @03:43PM (#20986469)
    (http://www.mccrappy.com/ | Last Journal: Tuesday January 25 2005, @02:29PM)
    This article came off very strange. It seems like trying to create a story out of nowhere.

    Last I heard MS was already making a profit on the 360, due to the cost coming down quicker than expected. Yes they took that billion dollar charge, but as I understand it each one sold is still profit at this point.

    Add onto that some pretty killer titles in the last year and MS has made some cash. Halo3 alone would offset any losses in the last year I would assume. (Short of the charge).

    If you read the statement Bungie released on their website it sounds more like what MS did was pull lots of companies into the fold, in order to foster the growth of its image as a gaming company. Now that they've established their beachhead, they can let those companies go sink or swim on their own merits.

    I think Rare is the perfect example of why MS is letting the studios go (though still in publishing agreements for many of them). With a good partner relationship MS doesn't take on the risk of a studio starting to turn out poor quality product. At the same time, its become a large enough, established enough player, that those publishers will pay attention to MS, even if they aren't subsidiaries.
  • Rare

    (Score:1)
    by tyrantking31 (1115607) on Monday October 15, @03:52PM (#20986595)
    The games Rare made for Nintendo were some of the only playable non-Nintendo titles on the N64. Rare certainly benefited from having access to Nintendo's characters and Nintendo benefited from having a studio which could competently create a playable game. I'm looking at you Namco and Capcom. After the break-up there were too few good games on the Gamecube and this article tells you everything you need to know about Rare's post Nintendo success.
  • Endless cash.

    (Score:2, Troll)
    by Fantastic Lad (198284) on Monday October 15, @04:57PM (#20987635)
    The goal behind Microsoft isn't simply to do business as its primary feat of social engineering.

    Subversion of the masses through electronic drugs is the primary goal. If Microsoft dies, then it will be replaced by some other machine designed to make people dumb and slow and distracted.

    I'm sure all the MS employees, however, don't see it this way. But they're just expendable cogs in the works of a greater force.

    Among the best things I ever did for myself was to throw out my television set, to stop playing video games, and to start eating healthy foods.


    -FL

  • Nonsense

    (Score:2, Insightful)
    More like 3 stories makes a conspiracy. How many of those companies were EXCLUSIVELY with M$? One maybe? Sounds like PS3 scaremongering.
    • Re:Nonsense by Gravatron (Score:1) Tuesday October 16, @03:17PM
  • by gonzoxl5 (88685) on Tuesday October 16, @12:55PM (#20997877)
    Bring back Jet-Pac !
  • by Pojut (1027544) on Monday October 15, @04:18PM (#20987051)
    Troll that you may be, I will respond anyway.

    First, my non-fanboy credentials. I own an Atari 2600, Jaguar, NES, SNES, N64, Gamecube, Wii, Gameboy, Gameboy Color, GBA, DS Lite, Genesis, Game Gear, Dreamcast, PS1/PS2/PS3/PSP, Xbox, Xbox 360, and a fairly up-to-date gaming PC.

    That being said, my 360 BY FAR has provided me with the most enjoyment and gaming time this generation. I myself haven't experienced a RRoD, however two of my friends have...and you know what? They got them replaced and continue to buy games for the system. Why? Because it's a fun fun FUN system.

    The controller feels great and controls tightly (aside from the horrendous d-pad...but no system really has a decent d-pad anymore), the first party/exclusive games are fun and replayable , the graphics are fantastic on an HDTV (and still look damn good on an SDTV), and the interface is fluid and easy to use.

    The hardware itself has it's obvious issues for some people, but overall it is a damn fun console and if mine ever went belly up, I would replace it in a second.
    • by DDLKermit007 (911046) on Monday October 15, @10:46PM (#20990741)
      Sure, the system gets the most play from you, but if it doesn't make the company boatloads of money like EVERY system Nintendo has ever made (outside of the Virtual Boy, which I think they broke even on). Investors tend to get a little pissy. They don't care if you personally like the system. They want MS to make them as much money as possible in as short a time as possible. MS, and Sony both keep fucking up, and I wonder just how much longer both will keep this game up. The crazy thing is the top competitor both companies want to beat is winning, by not competing with them!

      I'm no fanboy either, hell I love the 360, but the gaming division at MS is taking on a ton of watter. Gota face reality that the 360 may just be the last console MS puts out.
    • Re:Is that you, Mr. Ballmer? by CelticWhisper (Score:2) Monday October 15, @07:28PM
    • Re:Is that you, Mr. Ballmer? by Pojut (Score:2) Tuesday October 16, @08:47AM
    • 1 reply beneath your current threshold.
  • by nightgeometry (661444) on Monday October 15, @04:24PM (#20987151)
    (Last Journal: Saturday November 18 2006, @12:11PM)
    But... does netcraft confirm it? (Sorry, couldn't resist)
  • Re:Does it matter?

    (Score:1)
    by MBraynard (653724) on Tuesday October 16, @12:42AM (#20991439)
    (Last Journal: Tuesday July 31, @01:20AM)
    their only other success prior to MS was Halo 1

    While your post sounds like you are intelligent I am boggled by how you can be unaware that MS purchased Bungie long before the original Xbox came out - that's why Halo was a launch title.

  • Re:Does it matter?

    (Score:2)
    by Darby (84953) on Tuesday October 16, @01:03PM (#20997999)
    even then Bungie is nothing without Halo and Halo 3 would be nowhere near the success it was without MS' resources.

    Halo was possibly the most anticipated game ever back when it was cross platform (pre release). That's why MS bought them in order to make it an X Box exclusive.

    Halo 3 would have been more of a success without MSs involvement because more people could have bought it were it available on more platforms. Everyone already knew about it, so there wasn't really anything positive MS added to the picture.

  • 4 replies beneath your current threshold.