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VARIETY: How Layoffs Expose Xbox's Flawed First-Party Strategy

Ozriel

M$FT
Literally them grabbing teams and pushing them for things they aren't ready for, causing them to remove resources from elsewhere to make up the debt is literally the definition of mismanagement.

Undead Labs has been working and planning towards a major escalation of the State of Decay IP for years now. moving from AA to AAA in this case involves an escalation in budget and ambition. That’s all.


Especially since this isn't the first time, and MS has been making similar types of mistakes/blunders for some time now.

Certainly not the first time MS has provided the funding required to scale up games. All this falls under better studio management.

For some weird reason, you consider these ‘blunders’. And that’s nonsense.

.There's a difference between teams working together, and being forced to move resources to address a fault because of bad decision making

Where’s the ‘fault’?
One team more proficient than the other in UE is providing support. And that’s not support pulled from active Coalition projects. The end result will translate to BETTER games for both studios, especially for Undead Labs.

Turn 10 and Playground games have been supporting each other for the past decade…both studios are some of the most efficient in the business and both make the best rated racing games in the past decade. Yet you’re pretty much calling this type of collaboration - standard across the entire industry - a ‘bad thing’.

Maybe less opening new threads and more understanding how games are made by big publishers?
 
Where’s the ‘fault’?

What you're skipping over is that it wasn't expected to be needed, and then they had to get a helper on board.

This is something (among other things) that have been complained about MS management before for some time, you're pretending this is new and that this is some simple issue of Coalition having free resources to share with State of Decay. You're making a false comparison to Playground and Turn 10 because of you not understanding what's actually going on.

But if you want to believe that, that's fine, but when some dev leak comes out showing there's been issues (in fact it's been long enough already that it's obvious there has been issues given State of Decay isn't a complex juggernaut, and the delay for 3 so far with no new info or trailers is questionable) then don't be surprised.

Here's hoping State of Decay 3 ends up a good game either way.
 
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knocksky

Banned
It may mean nothing to you, but it does matter a lot in reality. We've also seen proof of its importance. Xbox bought many studios that they weren't familiar with and vice versa. This led to multiple delays, reboots, and just overall problems, e.g., Avowed, Hellblade, Compulsion Games next game.

On the other hand, Sony bought studios that were intimately involved with PlayStation processes. Consequently, they continued releasing high-quality games at a rapid pace, e.g., Insomniac, Firesprite, Bluepoint, etc.

You just mentioned some games that were obviously announced early to try and get people interested in their new hardware. You have no idea if being assimilated into Microsoft has had any adverse effects. It could well be the reverse. Like more funding has allowed them to make bigger games that take longer.
 

Punished Miku

Human Rights Subscription Service
You just mentioned some games that were obviously announced early to try and get people interested in their new hardware. You have no idea if being assimilated into Microsoft has had any adverse effects. It could well be the reverse. Like more funding has allowed them to make bigger games that take longer.
That's really the most logical conclusion. MS isn't mandating engines, corporate changes, or much of anything on purchased studios. Literally all accounts are that they're pretty much totally hands off and just funding it, and providing opportunities for tech sharing between studios. That's literally what Double Fine said in interviews after Psychonauts 2. Same with Obsidian and Pentiment. The issue they had was with growing 343 themselves, and The Initiative.

The acquisitions are the thing they're doing decently well. This article goes against everything we've ever heard about MS and how they run their studios, and as far I can tell, has zero sources to back it up other than the author's asshole that they pulled it out of.
 
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Eventually, this problem will go away as both Xbox and the studios become familiar with each other, workflows, and internal shared tools.

However, Xbox will have to improve its production pipeline for devs and ensure talent retention for that to happen.

Yep, it looks like Phil/Microsoft are starting to balance and stabilize their talent and production which is a good sign for the future.
 

JohnnyFootball

GerAlt-Right. Ciriously.
The kind of shift Xbox is pursuing it's not something that happens in 3 or 4 years. This is the reason Spencer still has a job.

It's a shame their output is suffering but it's understandable. Microsoft never had the capabilities Sony developed through the decades. Now they will.

Maybe their strategy won't work but at least for now I think it's too early to tell and based on just one specific aspect of the business (which could be argued is the most important one).
Good lord. These issues have been apparent since the early Xbox One days. It's not too early to tell. It's simple. They've completely botched their ability to manage first party studios. Coalition and Playground are their exception.
 

A.Romero

Member
Good lord. These issues have been apparent since the early Xbox One days. It's not too early to tell. It's simple. They've completely botched their ability to manage first party studios. Coalition and Playground are their exception.

I agree, Xbox steered in the wrong direction towards the launch of Xbox One and has been since fighting to correct it but they mixed it with a drastic change in strategy that is pretty new in the industry.

Thinking Microsoft can't handle product development IMO is just naïve. They are one of the biggest corporations in the world and probably the only fair comparison would be Apple capabilities wise.

Painting them as ineffective in a fundamental way would imply all the stuff they brought to the gaming industry was just a fluke.
 

ToTTenTranz

Banned
Well it's actually a well written and factual article with a bit of history research into it.
Which is already over 10x better than most of the crap we've been seeing from "game journalists" lately.


I agree, Xbox steered in the wrong direction towards the launch of Xbox One and has been since fighting to correct it but they mixed it with a drastic change in strategy that is pretty new in the industry.
Game Pass is almost 6 years old and it's spanned two console generations. The Series X/S have been heavily marketed with Game Pass in mind since their announcement, and those launched over 2 years ago.
That's like someone in 2001 saying "well we can't know for sure if Sony has a viable market for the Playstation 2 because the Playstation 1 has only been around for 6 years".
 
Organic growth? People make it seem like devs are grown in a lab. There isn't a limitless pool of talent just sitting around waiting for Jobs.

To create a studio from nothing, you need to raid a load of others. I know I know that Jim talked about organic growth so some people need to repeat it like it means something. When in fact it is just bullshit pr like Phil spews.
Organic growth doesn't mean what you think it means. It's about creating studios or buying them and then fostering an environment where they can grow and reach their potential, which in the case of Sony ends up as a litany of AAA games that routinely duke it out for GOTY awards and commercial success.
 

A.Romero

Member
Well it's actually a well written and factual article with a bit of history research into it.
Which is already over 10x better than most of the crap we've been seeing from "game journalists" lately.



Game Pass is almost 6 years old and it's spanned two console generations. The Series X/S have been heavily marketed with Game Pass in mind since their announcement, and those launched over 2 years ago.
That's like someone in 2001 saying "well we can't know for sure if Sony has a viable market for the Playstation 2 because the Playstation 1 has only been around for 6 years".

Microsoft hasn't finished their strategy, specially considering their biggest studio acquisitions are recent.

I'm just saying that shifts like these need more time. The only other possible explanation would be saying they are a bunch of idiots and considering they are one of the biggest and most successful companies in the world I wouldn't think it's very likely.

To me the biggest evidence they are playing a long game is that Phil Spencer is still employed.
 

knocksky

Banned
Organic growth doesn't mean what you think it means. It's about creating studios or buying them and then fostering an environment where they can grow and reach their potential, which in the case of Sony ends up as a litany of AAA games that routinely duke it out for GOTY awards and commercial success.
Really? Or are we just interpreting it in a way that fits our own biases?
 

knocksky

Banned
I'm interpreting it based off the context of how its being used. You don't have to agree with me.
Microsoft buys some studios, Sony fanboys want Jim's hide for not doing the same. Then Jim comes out and says that he prefers "organic growth" and all of a sudden it becomes un umbrella that encompasses everything.

No I don't agree with you
 

Pelta88

Member
The issue likely isn’t a matter of size as much as it is corporate management of teams

When the mainstream finally acknowledges what we've been saying for a decade.

giphy.gif
 

Rykan

Member
The kind of shift Xbox is pursuing it's not something that happens in 3 or 4 years. This is the reason Spencer still has a job.

It's a shame their output is suffering but it's understandable. Microsoft never had the capabilities Sony developed through the decades. Now they will.

Maybe their strategy won't work but at least for now I think it's too early to tell and based on just one specific aspect of the business (which could be argued is the most important one).
This is the right take.

It is going to take quite a while before Xbox's studios kick it into full gear.

Microsoft is still trying to recover from the fact that it bet on the wrong horse in the early 2010's, in which they assumed that it would be hardware that moved units instead of software. They didn't come to an arrangement with Bungie and didn't invest enough in new studios either. They've taken in a new direction, but progress is still very slow. It will happen eventually.
 
Just more evidence that mainstream sites should stay away from covering video games. Go back to covering TLOU's TV show variety, that's as far as you can go. 😂

Microsoft's layoffs were across the whole company. They have nothing to do with "strategy" besides the strategy to save money.

The decline in revenue was simply in comparison to an extremely strong year boosted by the pandemic. The whole gaming industry will see big drops this quarter. It's hilarious to see ignorant people and "journalists" interpret revenue down year-on-year pretty much like companies were actually losing money instead of just simply making a bit less.

This "article" is just word soup from someone who has zero ideas of what they're talking about. It'll be funny to see how they'll interpret it when Sony announced revenue decline later this week and Nintendo next week. Not that I actually expect this writer to know what that means. 😂
Also, part of the reason why Xbox revenue went down is because of all the discounts they had last year. You can still buy a series S for 250 dollars.
 

Unknown?

Member
Hi Fi Rush apparently started development in 2017. Years before the acquisition, and most likely as a full multi-platform release.

The way I see it, the Xbox brass' only contribution to this has been to trim off the Playstation SKU's and basically drop it cold as an added-value gimmick to prop up Gamepass. That's not credit-worthy in my opinion.

That the game's apparently a winner is entirely incidental. They could scarcely have done less to ensure its success.
/thread

Uncle Phil told me he wants to bring games to more gamers but all he's doing is removing access from Sony consoles.
 

JohnnyFootball

GerAlt-Right. Ciriously.
I agree, Xbox steered in the wrong direction towards the launch of Xbox One and has been since fighting to correct it but they mixed it with a drastic change in strategy that is pretty new in the industry.

Thinking Microsoft can't handle product development IMO is just naïve. They are one of the biggest corporations in the world and probably the only fair comparison would be Apple capabilities wise.

Painting them as ineffective in a fundamental way would imply all the stuff they brought to the gaming industry was just a fluke.
Yes, they are that because of WINDOWS and OFFICE. Not because of Xbox.
 

gothmog

Gold Member
Holy shit, the positive coverage of Hi-Fi Rush has really broken some people.

"Starfield in development hell"

"Microsoft can't keep surviving on goodwill alone"

"Massive layoffs at Microsoft, is the Xbox brand next on the chopping block?"
All three of those things were headlines before HFR was shadow dropped.
 
Also, part of the reason why Xbox revenue went down is because of all the discounts they had last year. You can still buy a series S for 250 dollars.

In bundance given how many holiday package box bundles are still being sold by stores.

Meanwhile the $499 box didn't have much supply in comparison, which would have helped with the revenue.

Here's hoping they can produce more by the time the big games launch.
 

ungalo

Member
Sony has an incredible ecosystem of production and they spend a lot on talent retention. Microsoft has not and they probably don't care. They can change the management for some studio it will not improve consistently the whole thing. Same for the layoffs, it's not that Microsoft don't care about Xbox (or Microsoft Gaming i would say now), it's that Xbox are highly dependent on the global and superior strategy of a giant tech company that is not just about gaming. We see that's the case in how they handle contractors in Xbox studios. I have little hope it will change, Microsoft is Microsoft, nothing wrong about that.

But even besides that i don't get why people would praise Microsoft for Pentiment or Hifi Rush, production wise. Creatively sure why not (even if Hifi Rush was in development way before from what i read). But whether it's first party or publishing, people cannot be satisfied by that. I hope it's only coping for some petty console war.
 
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A.Romero

Member
Yes, they are that because of WINDOWS and OFFICE. Not because of Xbox.

No argument there. However, they have some of the best talent in the world managing the company. That's where being a successful company comes into play.

Do you think Satya would just let Spencer drop 70bn in a blind bet? They have financial models that support these kind of decisions. Not saying their bet will pay off for sure but they are making informed decisions.

I agree though, their Xbox performance in recent years has been far from successful. I still believe that if they felt the situation was truly dire they would pull out, no reason to doble down buying studios if they didn't have confidence in what they are doing.

Microsoft as a whole entered a golden age under Satya. That guy knows what he is doing and transformed Microsoft in recent years. They might not know much about games (although I'm pretty sure they have access to way more information than us) but they do know about managing a business and they are betting on a future where all the pieces they are playing come into play.

I don't own an Xbox but I'm subbed to gamepass for PC and believe it's a game changer.
 

Heisenberg007

Gold Journalism
That's really the most logical conclusion. MS isn't mandating engines, corporate changes, or much of anything on purchased studios. Literally all accounts are that they're pretty much totally hands off and just funding it, and providing opportunities for tech sharing between studios. That's literally what Double Fine said in interviews after Psychonauts 2. Same with Obsidian and Pentiment. The issue they had was with growing 343 themselves, and The Initiative.

The acquisitions are the thing they're doing decently well. This article goes against everything we've ever heard about MS and how they run their studios, and as far I can tell, has zero sources to back it up other than the author's asshole that they pulled it out of.


"I've been told internal politics over engine use has also led to developmental problems in games like Fable and Halo Infinite, as Microsoft sought to use its own tools rather than fully-featured industry standards like Unreal Engine, which further exacerbates problems around training contractors, only to lose them mid-project."

By Jez Cordon.
 

Lasha

Member
343 leads and management worked for a game company while receiving compensation like a Microsoft employee. Who needs to make halo when you can go to F1 races or use your quarterly guaranteed bonus to buy sick ships in star citizen?
 

Stooky

Member
Just more evidence that mainstream sites should stay away from covering video games. Go back to covering TLOU's TV show variety, that's as far as you can go. 😂

Microsoft's layoffs were across the whole company. They have nothing to do with "strategy" besides the strategy to save money.

The decline in revenue was simply in comparison to an extremely strong year boosted by the pandemic. The whole gaming industry will see big drops this quarter. It's hilarious to see ignorant people and "journalists" interpret revenue down year-on-year pretty much like companies were actually losing money instead of just simply making a bit less.

This "article" is just word soup from someone who has zero ideas of what they're talking about. It'll be funny to see how they'll interpret it when Sony announced revenue decline later this week and Nintendo next week. Not that I actually expect this writer to know what that means. 😂
Because you don't agree doesn't make make it not true. Ill believe you when Microsoft starts releasing games at the same rate as Sony and Nintendo. I would also add around the same metacritic score average, but I would be asking for too much.
 
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