Microsoft Closes Redfall Developer Arkane Austin, HiFi Rush Developer Tango Gameworks, and More

karmakid said:
Most Xbox game devs who’ve left have gone on to start or join others like in six months or less, like Joseph Staten

www.businessinsider.com

Microsoft won't ban most staff from seeking jobs at big tech rivals

It's one of four policy updates announced Wednesday as part of a wider shake-up of Microsoft's corporate culture.
www.businessinsider.com
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Microsoft can't enforce non-compete clauses anymore anyway at least not in the US. If talent is going to leave, now is the time to start looking.

www.ftc.gov

FTC Announces Rule Banning Noncompetes

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamen
www.ftc.gov www.ftc.gov
 
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ZombiesRUCrazy said:
Jesus christ, they are so lost. Management is asleep at the wheel.

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I feel like I say this at every Microsoft misstep but Xbox management has always been their Achilles heel. They've always had talent and IPs but they've been poorly managed since their inception. If the Xbox division had been lead by Iwata or Shawn Layden, I'm not sure Nintendo or Sony are market leaders. Strong leadership with good communication internally and externally goes a long way.
 
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wshowers said:
I feel like I say this at every Microsoft misstep but Xbox management has always been their Achilles heel. They've always had talent and IPs but they've been poorly managed since their inception. If the Xbox division had been lead by Iwata or Shawn Layden, I'm not sure Nintendo or Sony are market leaders. Strong leadership with good communication internally and externally goes a long way.
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Or if they out kottick in charge, but now it seems he handed his play book over to the ms ceo
 
Looks like they’re saying it’s a management and leadership issue. Leadership/management saying it’s too hard? Even though they’ve existed for a good while with the same people running it. Something is a foot at circle k

kotaku.com

After Buying Up Studios, Xbox Says It Doesn't Have The Resources To Run Them

Apparently, Microsoft's top leaders are paying closer attention to Xbox and its plans, too
kotaku.com kotaku.com
 
I saw something that showed he got more in his payout than it would cost to run all the companies MS have closed this year. Guys payout was ridiculous.
 
The Wolf King said:
I saw something that showed he got more in his payout than it would cost to run all the companies MS have closed this year. Guys payout was ridiculous.
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So they’re literally saving hundreds of millions with him gone now….one year of his salary may have been able to cover marvels Spider-Man 2 cost and maybe Sami Rami’s first Spider-Man
 
karmakid said:
I think mattrick was given more power because oh his background/resume, same with Peter Moore, some may they have a pedigree/type. Maybe at the time they looked at Phil like Nintendo took their devs and put them in as execs, besides, their second option was probably the other Phil, and those in the know know you know

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Phil had the job Booty has now before he took Mattricks job, he had been with the company for a long time he wasn't a newbie or anything.
 
JinCA said:
Phil had the job Booty has now before he took Mattricks job, he had been with the company for a long time he wasn't a newbie or anything.
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True, but he was limited under a short leash, they didn’t have the “freedom” they do now. Like at my current spot, the manger before the current one had more say, because he was hand picked by his boss, as a yes man. The one before him would push back, he was known for many things that the guys above him did like but got things done his way, efficiently and with back up from many others. Dude had presence in a room, you either hated him or loved him, and if you were on his good side and liked you then he’d move mountains for you. First day on the job I pissed him of, cos snark and smart remark, I to pushed back when called out, and I’m digressing and losing my train of thought lol my theory, I think they didn’t plan on him getting this far. And now they’re sidestepping him because AI, which is cool tech but they’re jumping to commercialize it without having something worth while or functional
 
Brad, an ex MS/EA guy, gives his thoughts on the closures implying how Gamepass cuts into sales and MS needs to weigh losing potential revenue vs Gamepass sub expectations of day 1. Says that because of these huge acquisitions from past couple years, what worked before with the numbers isn't anymore due to growth stagnation and they need to make that $70 billion back or cut expenses further to balance. The revenue they are getting now isn't keeping up with the costs to make the games.

20240509_062644.png
 
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DriedMangoes said:
Brad, an ex MS/EA guy, gives his thoughts on the closures implying how Gamepass cuts into sales and MS needs to weigh losing potential revenue vs Gamepass sub expectations of day 1. Says that because of these huge acquisitions from past couple years, what worked before with the numbers isn't anymore due to growth stagnation and they need to make that $70 billion back or cut expenses further to balance. The revenue they are getting now isn't keeping up with the costs to make the games.

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Please, that guy can suck a big one.
 
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I'm now more curious as to what the "other" cuts are going to be that have been reported. Is it a managment shakeup or more rank and file?
 
Look at that! We're past the post count on a thread that's all about more than one company laying off studios and devs and other hard working folks.
 
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What Just Happened Wtf GIF by SomeGoodNews
 
Microsoft is trimming the fat. Those studios didn't do sh!t. If MS didn't buy Bethesda, it was going to happen anyway.
 
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So some one from another forum analyzed the closures from a bean counter/ CEO perspective. And when you look at it that way, the closures and pivot almost seemed necessary.

Analysing this from the perspective of the bean counters, they have some pretty convincing arguments and hard questions to answer for the Gaming division:


- ABK was the biggest acquisition in MS history and we made important sacrifices from an economical, legal and even reputational perspective during the review process. Why should we let you run it on your own terms as a division?


- Without ABK, the Gaming division would have single digit or negative growth. What have you been doing during the last 5-6 years?


- ABK was very successful and made a lot of money using a premium model focused on huge IPs. What happened to our own huge IPs and why haven't been able to create new ones?


- Bethesda has huge IPs that haven't received a new entry in years and will need 4-5 extra years to have a new game (Elder Scrolls or Fallout). What are you waiting for and why?


- Starfield was the only new IP in 2023 that entered the Top 10 of the most played games. Then, why are you wasting time and money on smaller, riskier and less profitable projects?


- Game Pass growth has stalled and it affects 20-25% of premium sales. Why should we sacrifice (part) of the huge IPs that we have recently acquired and that generate almost all your profits?
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And a few more…

From the perspective of the ones focusing on numbers, many of the arguments make sense.

The issue is that these moves are colliding with a very different strategy that has been presented during years and that in the end has mainly failed from a hardware, software and even services perspective.

I get it, its brutal business calculus but some of the points are valid IMO.
 
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