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Microsoft XBox (Games)

Microsoft's Xbox Is Planning More Cuts After Studio Closings (bloomberg.com) 21

The sudden closure of several video-game studios at Microsoft's Xbox division was the result of a widespread cost-cutting initiative that still isn't finished. From a report: 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. Employees were shocked by the unexpected shuttering Tuesday of three Xbox subsidiaries and the absorption of a fourth. The closures included Tokyo-based Tango Gameworks, which last year released the critically acclaimed action game Hi-Fi Rush. Tango was in the process of pitching a sequel, said the people, who asked not to be identified discussing nonpublic information.

During a town hall with ZeniMax staff on Wednesday morning, Xbox president Matt Booty praised Hi-Fi Rush but did not specify why the company had shut down the development studio behind it, according to three people who were in attendance. 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. Booty added that the shutdown of subsidiary Arkane Austin, the longtime developer of games such as Prey, was not connected to the performance of its new multiplayer game, Redfall, a critical and commercial flop.

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Microsoft's Xbox Is Planning More Cuts After Studio Closings

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  • the same QA the voted to unionize?

    MS may have some legal issues with doing this.

  • Then perhaps you shouldn't have gone on a buying spree picking up every single studio you saw. FFS.

    • It's the classic unsaid part II of a merger once it's done. We don't want to pay for all this extra real estate and the costs of separate studios. Why have 4 HR people for 4 studios when you can just have 1 studio with 1 HR person that happens to have 4 teams inside it.

      The fact there is some collective delusion like this wont happen after any major merger is part of why allowing these mega mergers to happen is so silly.

      • They're not keeping the four teams, either. They bought at least 1 of those companies solely to destroy the competition.

        Too bad we don't enforce antitrust in this country.

    • But Microsoft has a lot of money, at least judging by the AI-fuelled earnings report last quarter, right...? Why would it need to make these cuts and demoralize employees if the future is so bright? Not to mention Google and their core team?

      Maybe these two AI leaders know something about the future we don't.

    • by Lobo42 ( 723131 )

      Yeah. Remember all those videos of studio heads, shortly after selling to Microsoft, about how glad they were for the stability and security of being part of a large organization like Microsoft? No longer are we subject to the whims of the marketplace! Now we just have to meet our internal metrics and we'll be able to stay afloat!

      Whoops. Turns out selling out doesn't mean you are any less secure. It does mean you've given up all control, however.

  • I think this might be the first time I've heard "felt understaffed" as a reason for layoffs.
  • by xack ( 5304745 ) on Thursday May 09, 2024 @10:24AM (#64459589)
    Microsoft falsely promised more games, and more choice, but instead they are reducing them and forcing talented people out of a job. Meanwhile it keeps employing marketroids to make abusive Windows 11 and Edge adverts, knowing because of proprietary software dependencies most people cant just take the penguin pill. It's time Slashdot brings back the Borg icon.
    • by Luckyo ( 1726890 )

      Penguin pill would be great if it offered a comparable UI experience and library of software.

      Sadly, it remains hopelessly behind in both.

      In before "learn to use command line" and "emulating is fine reeee".

      • by The Cat ( 19816 )

        I've found Linux equivalents to every Windows application.

        Even Creative Cloud. Even game engines. Even Intuit. Streaming. Development. Video production. Illustration. Electronic publishing. E-commerce. 3D modeling. AI.

        Haven't booted Windows in years.

        • Please share your Linux alternative for Intuit?

          Also if you have one... Active Directory?

          I'm not doubting you, I'm hopeful you've got answers for me.

          • by Osgeld ( 1900440 )

            what he isnt saying is that all of them are half broken piles of garbage with a decade old featureset

          • by _merlin ( 160982 )

            Also if you have one... Active Directory?

            This is a serious one that a lot of people seem to underestimate. Sure, AD sucks in various ways, and MS has managed to make the admin UIs worse from Server 2008 onwards. But every time I try the alternatives, they don't compete at all. There isn't another LDAP/Kerberos solution with extensible schema, replication, and an admin UI.

          • by bn-7bc ( 909819 )
            Have a look at Zentyal [zentyal.com] their pricing seams reasonable
            • by bn-7bc ( 909819 )
              I forgot your first app, sorry about that, unfortunately I can offer no opinion on that, un,ess they have a SAAS offering that runs in the browser
    • Microsoft falsely promised more games, and more choice, but instead they are reducing them and forcing talented people out of a job. Meanwhile it keeps employing marketroids to make abusive Windows 11 and Edge adverts, knowing because of proprietary software dependencies most people cant just take the penguin pill. It's time Slashdot brings back the Borg icon.

      Context matters. Microsoft isn't firing anyone at Activision. Promise upheld. You need to read everything in context.

      forcing talented people out of a job

      I'm actually in two minds about this comment. The job here is literally a labouring skill. It doesn't require an up front investment in large amounts of infrastructure. They're not building bridges, refineries, not investing in heavy machinery. Game development is done on computers using software. My point is, when you fire individuals you put them out of a job, when you fire literally an ent

    • by mjwx ( 966435 )

      Microsoft falsely promised more games, and more choice, but instead they are reducing them and forcing talented people out of a job. Meanwhile it keeps employing marketroids to make abusive Windows 11 and Edge adverts, knowing because of proprietary software dependencies most people cant just take the penguin pill. It's time Slashdot brings back the Borg icon.

      And here are the fatal flaws of console peasantry.

      You're beholden to a single company for almost everything, the peasants bayed as Microsoft and Sony bought up everything, paid extra for "exclusives" and now this is how the tree to blind fanboyism bears fruit. You now have less choice and thousands invested in it.

      For the Glorious PC Gaming MR, it's a golden age of new games, less AAA crap but more options, not just in the type of games but also where I can get them from, Steam, GOG, Epic and others.

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