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Resetting Xbox

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Re: Resetting Xbox

#381
post #317

Earlier quoted context omitted.

With due fairness, these are two different sets of leaders and two different strategies. A lot of the strategy you outlined -- buying all these studios, replicating netflix, giving away day one games, raising game pass -- was a strategy put in place by Phil Spencer. Phil pushed for this investment with the promise it would pay off later for MS. He's talked publicly about having to convince Nadella to put up ungodly a…

I never understood the esteem Phil Spencer was held in, seemingly both by fans and industry insiders. I never understood Phil’s strategy. Buy a plethora of studios. Pay an order of magnitude over the odds for the big ones - just to be sure you get them! ‘Rescue’ smaller ones of questionable financial value - as part of Xbox they’d somehow be successful enough to justify the price paid. Heavily manage the studio heads…

> Buy a plethora of studios

IIRC Xbox had been criticized for quite a while at that point for having very few exclusive/first-party games worth buying an Xbox for. I always assumed this move was to try and fix that problem.

Re: Resetting Xbox

#382

Earlier quoted context omitted.

So you would chose the 3.25% bank or the 4.25% bank? Because it's a fictional illustrative example of "people always prefer more money", not a case study on banking lol Microsoft's ownership wants to put their money into the 4.25% bank, not the 3.25% one. Don't lose your mind overthinking it.

you think you have some amazing analogy but it's utterly nonsensical. where is microsoft putting this money that is going to earn it more? are they low on cash on hand? why are they not investing every dollar they have on these magical free returns that just need more cash?

>where is microsoft putting this money that is going to earn it more?

Sure,

https://news.xbox.com/en-us/2026/07/06/resetting-xbox/

Re: Resetting Xbox

#383
post #16

It was pretty rich seeing armchair video game industry analysts act like the new CEO was gonna usher in a new age for Microsoft's gaming division because she got to announce the updated logo and some games that would have obviously been in development long before she became CEO. Microsoft is never going to figure out gaming. It's more art than engineering and they can barely manage the engineering with all the interv…

>It's more art than engineering and they can barely manage the engineering with all the intervention from marketing and HR in their products.

truth. far too many MBAs in that company. "Let's monetize Solitaire!!!!" Only an idiot would even come up with that idea, never mind follow through on it.

Re: Resetting Xbox

#384

Earlier quoted context omitted.

The logic of day 1 releases, at least how it seemed to me, was that a % of those people who get gamepass just to play the game for cheaper would stick around. That’s potentially worth way more than 1x $60 (now $70-$80) sale. That didn’t happen I guess

It’s funny how a strategy like this would work on me, but I am a busy adult who doesn’t really game. Compare that to my nephews who have a lot of time for gaming, but they’re always fighting to scrounge up the money for another month of Nintendo online or Xbox online and go without it for at least half the year

[dead]

Re: Resetting Xbox

#385
post #16

It was pretty rich seeing armchair video game industry analysts act like the new CEO was gonna usher in a new age for Microsoft's gaming division because she got to announce the updated logo and some games that would have obviously been in development long before she became CEO. Microsoft is never going to figure out gaming. It's more art than engineering and they can barely manage the engineering with all the interv…

To me, the graphics abilities have been there for a decade... what we need are better games and gameplay. More fun games without gotcha, pay to win, loot box efforts. Too much effort is going for dazzling graphics at the expense of overall gameplay. How many people are still playing CoD, WoW and so many other games from over a decade ago? How many refreshes of Final Fantasy have we seen? The graphics can only carry y…

I’ve been saying this for 20 years. I care much less if the game is visually stunning than if the core game is fun. It could be a paintball themed FPS for all I care as long as the core mechanics are fun and the story is engaging, I care very little. Also, good graphics don’t have to be hardware intensive—not everything needs to seem photorealistic.

Re: Resetting Xbox

#386

> We will deliver success through a flatter organization that is built around makers (individual contributors focused on building), player-coaches (leaders who remain deeply involved in the work while developing their teams), and directly responsible individuals (DRIs) who own key decisions and outcomes. xbox-specific issues aside, this proposes an interesting view of the future of work.

Isn't this basically the same structure they currently use i.e. individual contributors, managers, and producers?

As someone who works in big tech with a partner at a similar big tech company _but with player coaches, DRIs, etc_ it is basically the same thing except messier.

Your manager who used to just focus on motivating and unblocking their people? Now they have to ship code too since they’re a player coaches! You’re a DRI who needs management to get your project unblocked? Too bad your player coach who has to ship code now also has 20 direct reports because the hierarchy was flattened so you can’t get time with them until next week and are blocked until at least then.

It is the hot new trend from the “thought leaders” who have all consistently copied each other’s bad ideas for the past 10 years.

Re: Resetting Xbox

#387
Xbox is a sideshow at Microsoft at this point--and arguably has been one for a very long time. Yes, it brings in non-trivial revenue but not a lot of profit. I don't really expect that you'll see new Xbox-related development in a few years.

Re: Resetting Xbox

#388

Earlier quoted context omitted.

Microsoft laid off most of its Halo talent in a previous lay off cycle, stripping 343 Industries of most of its staff and rebooting it as Halo Studios as a shell to mostly outsource development to other companies in the way that Call of Duty was built on the game development equivalent of sweat shops. They've already shown that they don't have the guts to make Halo 14-39, they seem to be only doing yet another remake…

What is Halo 14-39? Google wasn’t helpful for me.

I think they are just saying MS will rush out yet more Halo games, ie Halo 14, Halo 15, etc

Re: Resetting Xbox

#389
post #16

It was pretty rich seeing armchair video game industry analysts act like the new CEO was gonna usher in a new age for Microsoft's gaming division because she got to announce the updated logo and some games that would have obviously been in development long before she became CEO. Microsoft is never going to figure out gaming. It's more art than engineering and they can barely manage the engineering with all the interv…

Microsoft is not an engineering company any more. Just look at their products. They placed ads in the start menu and file explorer. Azure is one of the worst clouds when it comes to features and reliability.

Microsoft is a dying company, and they are trying not to end up like IBM, but their fate is inevitable.

Re: Resetting Xbox

#390
post #254

Earlier quoted context omitted.

> This is still $150M of pure gravy every single year. The issue is rate of return. They are evidently spending $4.85bn on Xbox per year. The US federal interest rate is 3.5% so if you just put that money in US bonds you would get about $175M per year of much purer simpler gravy.

Exactly. The inflation rate is about 3%, so the people at Xbox worked very hard all year to have about the same value they put into it.

Only if you count the value of the games produced as $0
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