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Resetting Xbox

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41–50 of 981 posts

Re: Resetting Xbox

#41
post #20

This is incredibly sad for a lot of my friends who are finding themselves out of work despite delivering well received products. But at the same time I appreciate the candor of Asha saying that the corporate management are to blame and letting studios go back to being independent where possible. Phil Spencer really messed up. Everyone in the industry knew Microsoft were making bad calls trying to dig themselves a hol…

[deleted]

Re: Resetting Xbox

#42
Xbox has an interesting opportunity going forward, that I expect they'll fumble.

Interest in physical media has actually been on the upswing, and, with Sony announcing their plans to abandon physical media, it feels like MS has a chance be the "good guys" like what Sony did to MS when MS threatened to ruin physical media prior to the Xbox One release.

However, I'm expecting Microsoft to simply follow Sony's path, because I think they are already going down a path that favors digital-only, and I also think they just don't care to distinguish themselves. It seems like Xbox's claim to fame for the past few years is "It has game pass, and it can play a lot of the same games PlayStation can."

Re: Resetting Xbox

#43
Impacted non-studio dev here. It's a bloodbath like some of the leaks in the past few weeks have said. Many important platform/infra teams getting gutted, even in areas where there's supposedly a ton of future investment.

Re: Resetting Xbox

#44
post #20

This is incredibly sad for a lot of my friends who are finding themselves out of work despite delivering well received products. But at the same time I appreciate the candor of Asha saying that the corporate management are to blame and letting studios go back to being independent where possible. Phil Spencer really messed up. Everyone in the industry knew Microsoft were making bad calls trying to dig themselves a hol…

I disagree, it wasn’t Phil that dug a hole but Asha who pushed Phil out with no plan. Why is Asha finally revealing her plan years later if she was such a good fit? She came in trying to automate away peoples jobs with AI for the last year or so and that is obviously failing. It wasn’t Phil that invested the entire company’s well being on stochastic parrots. She has done everything but focus on delivering games (prod…

Just looking at Sharma’s history, she rejoined MS in 2024. Xbox was struggling long before that, so I don’t see how anyone can blame Sharma for the past 10 years…

Re: Resetting Xbox

#45

Earlier quoted context omitted.

...more like > We can't afford it, and it's a bad investment anyway

>> We can't afford it But they've already spent the money. They spent about 70 billion on activision blizzard. That was and still is an outrageous amount of money that will take fever to break even let alone turn a profit.

They bought a content competitor, now they get to "reset" their vision for it. Mission successful.

Re: Resetting Xbox

#46

Xbox has an interesting opportunity going forward, that I expect they'll fumble. Interest in physical media has actually been on the upswing, and, with Sony announcing their plans to abandon physical media, it feels like MS has a chance be the "good guys" like what Sony did to MS when MS threatened to ruin physical media prior to the Xbox One release. However, I'm expecting Microsoft to simply follow Sony's path, bec…

Xbox is ahead of Sony on this path. Their studios often, if not most of the time, release physical games that require a full download to play.

I doubt that they will go back to where Sony are now.

Re: Resetting Xbox

#47
post #12

It is neither possible nor desirable to own every great independent studio. We have also learned that we are not the best home for every type of studio This is shockingly self-aware for microsoft

Yes, but only because the bar is so low. "We can't commodotize innovation" is not an especially subtle insight, and pretty much everyone other than executives at companies like this understand it without having to spend billions to try it out.

Re: Resetting Xbox

#48
post #20

This is incredibly sad for a lot of my friends who are finding themselves out of work despite delivering well received products. But at the same time I appreciate the candor of Asha saying that the corporate management are to blame and letting studios go back to being independent where possible. Phil Spencer really messed up. Everyone in the industry knew Microsoft were making bad calls trying to dig themselves a hol…

I disagree, it wasn’t Phil that dug a hole but Asha who pushed Phil out with no plan. Why is Asha finally revealing her plan years later if she was such a good fit? She came in trying to automate away peoples jobs with AI for the last year or so and that is obviously failing. It wasn’t Phil that invested the entire company’s well being on stochastic parrots. She has done everything but focus on delivering games (prod…

a) Asha didnt push Phil out.

b) She's been in the role for 4ish months, not years.

Re: Resetting Xbox

#49
post #44

Earlier quoted context omitted.

I disagree, it wasn’t Phil that dug a hole but Asha who pushed Phil out with no plan. Why is Asha finally revealing her plan years later if she was such a good fit? She came in trying to automate away peoples jobs with AI for the last year or so and that is obviously failing. It wasn’t Phil that invested the entire company’s well being on stochastic parrots. She has done everything but focus on delivering games (prod…

Just looking at Sharma’s history, she rejoined MS in 2024. Xbox was struggling long before that, so I don’t see how anyone can blame Sharma for the past 10 years…

Xbox has been profitable almost continuously since a few years into the Xbox 360. It's fascinating how "profitable but low margins" equates to "struggling" to so many.

Re: Resetting Xbox

#50
post #24

This is a total mess IMHO. - The make around 5 billion in revenue per quarter - The problem according to them is profit margin - around 150-160 million So first of all, they are big! Secondly they are not at a loss. They just have a "thin, non-growing margin". So to fix all this they are trimming down, so they can "return to growth" (which I think is ridiculous). Some points - - They are huge business even now - 5 bi…

> - The make around 5 billion in revenue per quarter - The problem according to them is profit margin - around 150-160 million

> So first of all, they are big! Secondly they are not at a loss. They just have a "thin, non-growing margin". So to fix all this they are trimming down, so they can "return to growth" (which I think is ridiculous).

How is that profit margin distributed though? King (Candy Crush etc) and Mojang (Minecraft) are specifically called out as money-makers, it's possible that they're carrying the majority of profits while everything else is a dud:

> We have also learned that we are not the best home for every type of studio; in a typical year, we lost 64 cents for every dollar we invested.

As an example, Double Fine (one of the studios being chopped) has released 2 games since 2021, Keeper (191 peak player count on steam) and Kiln (163 peak players); these would be flops even for a normal indie game, for a studio getting Microsoft salaries those are enormous flops.

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