@theduckofdeath People blame Microsoft and perhaps they bought more than they could handle, but the acquisitions were not hostile nor destroyed the studios. I also remember that Bethesda was struggling and urgently needed a parent company and they were happy it was Microsoft because they already had a close relationship with them. I have only played Starfield and Skyrim (on Series X), but I'm already a fan. The story of Majong is funny. The owner, a Swedish that moved to USA, asked on social media if anybody wanted to buy his company and Microsoft answered the tweet. ABK was also looking for buyers because it was in the middle of an internal crisis, supposedly because of Bobby Kotick, who stepped down after the acquisition. Stamper brothers, the owners of Rare, offered Nintendo to buy the whole company. Unimaginably, Nintendo refused, and Microsoft stepped in.
@clvr It's well known that Phil Spencer had a hands-off approach and let the studios do whatever they wanted, so you could say that the freedom he gave them was the first mistake. The rest of the mistakes lay on the studio, starting with the directors and producers. That's why some Xbox studios have made great games and even helped other studios in the meantime and why others are struggling despite the external help. For the record, I like Phil Spencer, but I've always criticised that strategy. Ironically, he thought that letting studios do whatever they wanted would result in a better pipeline.
@Elbow Considering how short and linear these games are and the development times, I think that these studios became slower and lazier under Xbox's umbrella because of the hands-off/trusting approach of Phil Spencer. I also think that they received a warning eventually because of Double Fine and Ninja Theory speeding development up with Kiln and Senua (3). This is also why The Initiative didn't do anything until Crystal Dynamics came to their rescue seven years later. @Nexozi is right, these smaller studios were bought to boost the games going onto Game Pass, but didn't perform as expected. I'm sure that they also looked at play time and number of players on Game Pass, not just sales. That and the disproportionate development time: 7 years for South of Midnight, 4 years for Hellblade II, 4 years for Keeper and 7 years for Perfect Dark — which I would have saved and given to Crystal Dynamics.
@Nexozi Right and it's not just selling or shutting studios down, but part of the staff is fired after releasing a game, or development is outsourced with poor work conditions. The only positive thing I see is that the talented people seem to find another team easily. This business has become bigger than the film industry and than the music industry. It's probably as stable as those.
The three studios I predicted. This industry has become volatile with all the big publishers selling or shutting studios down, staff moving from one studio to another constantly, developers fired after releasing a game, etc. I hope that it's like Tango, that the ones that wanted to stay in the studio stay and the others find a position elsewhere, or Toys For Bob, that became independent and now work with Xbox. What I can say is that if you really care and want to support your favourite studio or IP, buy its games.
It's not just the games underperforming, though. I love single-player games and I have played these three, but Compulsion took seven years to make a short single-player game. Ninja Theory took four years to develop a shorter single-player game. Double Fine invested four years of development in a very short game. The first one is fine but rough. The second, I think, is the most impressive Unreal Engine 5 game, but shorter and linear and with little gameplay. The third is a very nice game, but even shorter. The development time of these three games is another argument that I knew was employed. Considering how short these games are and the development times, I think that these studios became slower and lazier under Xbox's umbrella because of the hands-off/trusting approach of Phil Spencer, and I also think they received a warning eventually because of Double Fine and Ninja Theory speeding development up with Kiln and Senua (3).
@Enriesto I agree with you. When I have talked about the hands-off approach by Phil Spencer in the past, I've always referred to it as a double-edged sword. If the studio is not just working on its own but also meeting reasonable expectations, it's perfectly fine, although communication never hurts. In other cases, it has led to members arguing with each other without any kind of team work. The best examples are Playground and The Initiative. Hierarchy, not tyranny, is needed. It's great to have a good leader. In other cases, the hands-off approach has led to dragged or hell development. That's why some Xbox studios excel and others don't. I'm sure that this is over with Asha. She is turning Xbox into a tighter, more efficient business so it can be sustainable in the long term, something that, surprisingly, Nadella agrees with in his last interview, as he usually is seen as a short-term benefits businessman. Xbox makes a fortune but it's also bleeding money. That's why they need to make hard decisions.
@DonnieTACO Which one? South of Midnight? Well, like others I criticised the gameplay back in the day. I posted about it on Last Game You Played, where I'm brutally honest about the games I play, whatever the studio. At the end of the day, it's my opinion. I can't say it's a bad game, but it's rough, and seven years is too much. The latter can also be said about Hellblade II (short game, 4 years) and Keeper (very short game, 4 years).
@Benjamin That's another thing, staff moving from one studio to another. There was a meme about Halo developers making Metroid Prime and vice versa. The positive thing is that most developers seem to find work elsewhere, but studios are volatile.
@Friendly That's fine. I also think that Xbox is the most consumer-friendly platform. What I was trying to say is that the three of them are looking at the numbers. I supported the idea of shutting new and messy studio The Initiative down even before it happened, but I've always criticised the cancellation of Perfect Dark and not hiring Crystal Dynamics, that were already working on it. Xbox as a platform has good and bad things, like PS and Nintendo. Like you, I thought that Nadella was bad, but now I'm not sure if the others are any better. At the end of the day, we should enjoy games and not get carried away with questionable business decisions that affect not only our consoles but almost everything that we use and buy in our lives. If we criticise them, let's do it fairly and across the board. By the way, I don't consider you a troll and this is why I reply. 😊
@Enriesto
The only instance where you could convince me that overtime is acceptable is when workers agree to it. In other words, it’s democratic, not some decision made by executives or a managerial body. (...) that optional overtime is very seldom offered in gaming studios.
This is absolutely right and match what those workers in developed countries described.
As I said earlier, Xbox is/was more hands-off, at least during Phil Spencer's tenure, which doesn't mean that they won't shut an underperforming studio down after assessing the results.
@Friendly I'm not saying that this (if true) is good news, I'm saying that the three of them are a ruthless business because the whole world is ruled by money, sadly. Nintendo is considered a skeleton company regarding development for the size of their gaming business. Most of their games are outsourced. Don't forget that people working for you is as important as people that are working for you via outsourcing. Nintendo do that just to save money and headaches. Besides, as a Nintendo fan, I read all the Iwata Asks and the pressure within the company was real and officially admitted.
@somnambulance You should not worry nor be relieved until any of these pieces is officially confirmed.
@Enriesto Mercury Steam (outsourced Metroid) and Naughty Dog (first-party Sony studio) are very good examples. Actually, I think that Xbox has been the most hands-off, so friendlier in a sense, at least during Phil Spencer's tenure. That doesn't mean that it's the ideal approach nor that they are not going to look at a failed project seven years later and shut a studio like The Initiative down. It's a business like Nintendo and PS, but it's very hypocritical of them to consider Xbox evil and Nintendo (or Sony) kind.
As I posted on the last article, all of them are the same and check the numbers. Xbox, Sony and Nintendo. The only difference is that Nintendo heavily relies on outsourced development, which doesn't mean that the work conditions are better nor more stable (ask Mercury Steam ex-workers). None of them is the good guy in this industry.
@Enriesto That's absolutely true and what some people want to ignore thinking that Nintendo is the good guy in this industry that keeps everyone home and happy. A Mercury Steam (Metroid) ex-worker said that conditions were not that great in an interview.
@Lysterao I agree, it could also be Arkane despite Deathloop being critically acclaimed and Blade being in development. We don't know. The Initiative is an exception. The studio was new and a mess according to the people that joined and left. However, Xbox should have hired Crystal Dynamics for finishing Perfect Dark, because they were saving the project.
I remember that area in the screenshot clearly. Absolutely stunning game, but it took seven years to develop and, unfortunately, was not successful enough to justify the investment in the studio.
@Elbow Rare also supports other studios. At the very least, they worked on Killer Instinct 3, Battletoads and another one that wanted to get the water physics right, don't remember which right now. As you said, it took seven years to develop South of Midnight. It took Ninja Theory four years to develop Hellblade II. Both are relatively short single-player games. Interestingly, both Double Fine and Ninja Theory sped development up recently with Kiln and Senua (3).
@AI-Generation That's what Asha said they need to do, despite PS "misunderstanding" and presenting it as Xbox wanting to make more games and faster. I hope that they are also going back to some of their iconic IPs. Basically, you are right, they want to be a bit more like Sony and Nintendo in that sense, so they don't bleed cash because of underperforming studios, although Nintendo is different because it heavily relies on outsourced development.
I imagine Turn 10 will be absorbed into Playground Games in some way.
Turn 10 is already supporting Playground and Playground used their technology for building Forza Horizon, so it makes total sense.
@Sheppard I think that Undead Labs is safe. I hope I'm not wrong. After a rough launch, State of Decay 2 became an excellent game whether you play offline or online and they finally overcame the development problems of 3.
@LaurenceJ1987 Keeper is a very nice game that I enjoyed. Perfect for Game Pass. The only problem I see with Double Fine is that it took them four years to release a very short single-player game.
@ScalenePowers Often this happens after releasing a new game. Senua launches in 2027. This rumour says 2026, but it's just a rumour. All studios are working on at least one game, or they should. That doesn't matter.
I posted on the other article before reading this that the most likely are Ninja Theory, Compulsion Games, Double Fine or Inxile. Everything that Asha and Nadella say hint at a more "core" and efficient Xbox, with a simpler infrastructure and focused on beloved IPs and well-performing games, so these are the studios that I think could be affected by this Xbox reboot that, at the same time, wants to go back to being a differentiated platform with exclusives as the others, which means they are keeping the studios and IPs that are more successful and influential.
@oopsiezz The interview and letter explain that there is not a simple reason. People are making assumptions and guesses like it's because of Game Pass or because games are not selling, but what she's saying is that the infrastructure is bloated, it's not efficient, they have too much staff, they rely on vendors and they are slow-reacting. If you adjust what's not working, the 3% number will improve significantly even before tackling studios.
She also acknowledges that not all games and studios are performing well and that's another factor and a common problem that all big publishers have and need to adjust, even Sony with twice as many (2.5x) consoles sold and not that many studios and exclusive games. Basically, she will cut the fat to make Xbox more "core", smaller in infrastructure, with more Game Pass tiers, more focused on the studios and IPs that perform well and with more exclusives and platform identity.
Because there's no reason to ditch Xbox. I agree that the current-gen is capable of much more. That's why they're supporting X|S and why I think that the next cross-gen period will be as long as the current one. Sony will do the same. We still call them generations but the frontiers are fading.
Not being subsidised doesn't equal to cost being as much as a gaming PC. Console manufacturers sign deals for closed specs. Besides, a console's capabilities are greater than the equivalent specs on a PC because of customisation. Actually, I think that Steam Machine, the one you mentioned, is one that will be more an off-the-shelves computer and worse value.
@Schonks That's right and the reason why Game Pass is being adjusted but won't disappear. Many companies would like (or have) a subscription like that, but Xbox has many beloved IPs and games to make it worthwhile. Games that didn't necessarily sold a lot of copies on day one have subscribers playing them years later, on top of games that sell well and also get a lot of players via Game Pass. Besides, first-party games don't leave the service, making the library bigger every year. That aside, Capcom, Ubisoft and Square Enix have all said that they're happy with their games selling digitally years later even if the price gets lower.
@Skinny-Pete @eduscxbox The last Call of Duty was considered disappointing by fans and reviewers, but still was one of the best-selling games of the year (#5). I want to see how Call of Duty: Modern Warfare 4 performs because it looks like a much better entry.
@Kilamanjaro It makes total sense for Xbox to release consoles because they have a store with a gigantic amount of content. If Xbox is going to be on PCs via Xbox on PC, why not on a console as well? Microsoft also manufacture Surface computers and they don't expect to sell more units than Asus. Helix is built as a custom gaming PC, but so were Xbox One and PS4 but with specific stores. The only potential problems with consoles are:
1) Being subsidised: they likely won't be subsidised anymore.
2) Having a specific store not available elsewhere: no longer the case with Helix, but still Series X|S were greatly supported by third parties.
3) Requiring specific ports: they won't be required, but still Xbox One and Series X|S were also supported by third parties despite being third in the console space, with Xbox One starting Play Anywhere but with different builds for console and PC.
Remember also that Xbox has 50m+ of active console users right now.
There are many ways to improve the Xbox business and making it more efficient, but killing Xbox consoles is the one that makes less sense and the one they will not do. Moreover, they need to protect their console, the opposite of what Sarah Bond did, for the sake of the Xbox ecosystem.
He's right. They have invested a lot in content and I don't mean acquiring ABK specifically, but the fact that until 2017 they only had Rare, Mojang, Turn 10, 343 Industries and The Coalition. Now, they have a rich portfolio of IPs and around 40 studios.
By merging the console and PC store it will be much easier to reach a greater number or users. PC has 1.8b players. Some multiplatform and PC players are starting to buy more Xbox games because of Play Anywhere. Besides, Xbox ports will not be required because the console will run PC games, on top of Xbox games via backwards compatibility. That's why I'm not worried about my Xbox library, at all. Something I can't say about the (great) Nintendo games I've been buying on Nintendo's digital stores.
They have everything they need: hardware, OS and software. Next generation, there will be several hardware options, expensive and cheaper: the high-end Helix, dockable handhelds by Asus and more. Hardware will probably be not subsidised from now on and console sales won't matter as much.
According to what The Information reported, Xbox will develop more of their beloved games and IPs. That's basically what all publishers are doing, but I believe we'll still be seeing smaller projects and new ideas that work like Grounded. Game Pass can be adjusted in many ways. Asha teased new tiers in the interview, but it will never disappear because it's the best way to make the best of their huge library, growing each year.
They will need to cut the fat as per sections 4 and 5 of the letter. The fourth is about studios and software, but the fifth is about the infrastructure and lack of efficiency and it's essential because it can be fixed without affecting the content output. If this reboot ordered by Nadella and executed by Asha is needed because Xbox is too oversized in terms of staff and structure and therefore it's bleeding money despite the fortune they make yearly, there's no other way forward. I congratulate them on acknowledging problems and finding solutions.
@Lightbubulz The "corridors" definition is an exaggeration in this case, but be a bit patient because, as most Final Fantasy games, each one has different battle mechanics. It took me a little time, but I loved the three of them for different reasons. As a bonus, the Final Fantasy XIII trilogy looks and plays better than ever on Series X.
Some Monster Hunter World online and I'm going to start Fable II because I've only played the first one, with all achievements except the Smart Glass device one. I have tried Crash Bandicoot 4 on Game Pass but it is a lot worse than the trilogy. Washed-out colours, level design based on memorising rhythmic patterns of (crouch)-jump-additional action and guessing where hidden crates might be in very long level. I'd rather complete the remake trilogy again 100%, which I love.
To be specific, I like the library upgrades we've been seeing lately. It makes much easier to see in a tidy manner which games you own, are on Gold (always included with Game Pass), your current Game Pass titles, etc. You no longer forget about games just because they are not installed. That's probably my favourite thing about the whole Xbox user interface. That and the handy shortcuts. I also appreciate the higher artwork resolution and that we will be able to choose the cover art instead of the tiles if we want to, kind of showing a physical collection on the screen.
@cragis0001 I guess we'll have to wait and see what marketing they do from now on. A Gears of War E-Day bus stop ad as an Xbox exclusive would be cool, but making Xbox games exclusive is intrinsically viral marketing, you have people and websites doing the job for you.
For clarification, although all my sentences had that clarification included and conveniently ignored, when I say that Xbox makes a fortune, I also say that numbers are not working out. How could we know that before this letter? We all were guessing if the strategies were working well or not, but we didn't know, including the ones that being always negative are obviously right sometimes. Not all, but people that like Xbox tend to be positive and people that don't like Xbox tend to be negative with their guesses on this site. Now we finally know because of Asha's statement and I'm happy to know the truth. If profitability has went from 15%-20% (posted by other users with sources) to 3%, it means that something wasn't working lately.
I think that the main problem is the damage done to the brand and that's what Asha is rebooting it, but it's also that PS5 ports haven't paid off in terms of sales (data-driven) and platform identity (strategy-driven), because Xbox is constantly compared to PS and Nintendo. But, as we know, Xbox owns massive multiplayer IPs that make sense everywhere. Even for Sony would make sense to have whatever massive multiplayers they have saved everywhere.
The fourth section is about the software. They have many great studios, we all agree about it, but the whole thing is bloated and not everything within is being efficient and, in that sense and sadly, they need to cut something as every other big publisher.
I still think that Phil had great ideas like Game Pass and I see that expanding and growing, but Asha was right to remove Call of Duty and make it cheaper. She teased more tiers in the interview. Some people insist on Game Pass players being trained to not buy games, but we know that it's an unfounded lie and Forza Horizon 6 is just one example more.
We should be paying more attention to the fifth section, because when the infrastructure is huge, fragmented, slow-reacting and depends on third parties unnecessarily, fixing that improves the financial performance of the business without affecting content output. Cut the fat and Xbox will make the most of their income and still produce amazing games.
@betterthings Great post! I had forgotten that Sony changed parts of the PS5 with cheaper replacements, e.g., the cooling system. I think, as have been posted before by many, that Phil thought that multiplatform was the solution. I remember when he said that people aren't buying their consoles and not paying attention to their games even when they're critically acclaimed, which I think it was not exactly the case but his perception comparing Xbox and PS. He was big on Game Pass and I agreed with that. Sarah thought that they could find players on Cloud and mobile, but console games are not what mobile players are after. Everything together means not giving much importance to the current-gen consoles and not having enough stock in many EU countries, yet they had Helix, Xbox on PC and Rog Xbox Ally X planned, which I think were all great ideas.
Asha is not a gamer and is not under the influence of nostalgia. She is set on rebooting Xbox. Despite the fortune that Xbox makes yearly, profitability has plummeted because their recent business strategies haven't paid off. There's also a bloated infrastructure and lack of efficiency. The fifth section of the message reflects that. The fourth section addresses the software area and seems to be hinting at a new balance that still provides great content as they already have, exclusivity to a certain degree to become a differentiated platform and, sadly, getting rid of studios that are bleeding money without releasing well-performing content.
@betterthings Thanks. I watched a DF video saying that the engine wasn't designed for other types of games in the Q&A section, yet Indiana Jones and the Great Circle is a very different title with exceptional graphics and perfect performance. What an engine!
I'm not sure why you keep trying to make Xbox sound like the good guy here.
What are you talking about? I haven't said my opinion nor defended Microsoft. I said let me double check because, as I explained, I had read that it wasn't like that. Instead of speculating, I searched and literally posted the official statement. I don't know why you have a distorted perception of my posts when the only subjective thing I said is that I love the studio. By your logic, I could say that you're just hating Xbox.
Comments 8,644
Re: Full List Of Xbox Achievements Revealed For Halo: Campaign Evolved
I could be the only that prefers achievements to pop up and surprise me, but I admit that after beating a game that I really like, I hunt the rest.
Re: Report: Multiple Xbox Studios In 'Active Negotiations' With Microsoft To Avoid Closure
@theduckofdeath People blame Microsoft and perhaps they bought more than they could handle, but the acquisitions were not hostile nor destroyed the studios. I also remember that Bethesda was struggling and urgently needed a parent company and they were happy it was Microsoft because they already had a close relationship with them. I have only played Starfield and Skyrim (on Series X), but I'm already a fan. The story of Majong is funny. The owner, a Swedish that moved to USA, asked on social media if anybody wanted to buy his company and Microsoft answered the tweet. ABK was also looking for buyers because it was in the middle of an internal crisis, supposedly because of Bobby Kotick, who stepped down after the acquisition. Stamper brothers, the owners of Rare, offered Nintendo to buy the whole company. Unimaginably, Nintendo refused, and Microsoft stepped in.
Re: Report: Multiple Xbox Studios In 'Active Negotiations' With Microsoft To Avoid Closure
@clvr It's well known that Phil Spencer had a hands-off approach and let the studios do whatever they wanted, so you could say that the freedom he gave them was the first mistake. The rest of the mistakes lay on the studio, starting with the directors and producers. That's why some Xbox studios have made great games and even helped other studios in the meantime and why others are struggling despite the external help. For the record, I like Phil Spencer, but I've always criticised that strategy. Ironically, he thought that letting studios do whatever they wanted would result in a better pipeline.
Re: Report: Multiple Xbox Studios In 'Active Negotiations' With Microsoft To Avoid Closure
@Elbow Considering how short and linear these games are and the development times, I think that these studios became slower and lazier under Xbox's umbrella because of the hands-off/trusting approach of Phil Spencer. I also think that they received a warning eventually because of Double Fine and Ninja Theory speeding development up with Kiln and Senua (3). This is also why The Initiative didn't do anything until Crystal Dynamics came to their rescue seven years later. @Nexozi is right, these smaller studios were bought to boost the games going onto Game Pass, but didn't perform as expected. I'm sure that they also looked at play time and number of players on Game Pass, not just sales. That and the disproportionate development time: 7 years for South of Midnight, 4 years for Hellblade II, 4 years for Keeper and 7 years for Perfect Dark — which I would have saved and given to Crystal Dynamics.
@Nexozi I can totally understand that!
Re: Report: Multiple Xbox Studios In 'Active Negotiations' With Microsoft To Avoid Closure
@Nexozi Right and it's not just selling or shutting studios down, but part of the staff is fired after releasing a game, or development is outsourced with poor work conditions. The only positive thing I see is that the talented people seem to find another team easily. This business has become bigger than the film industry and than the music industry. It's probably as stable as those.
Re: Report: Multiple Xbox Studios In 'Active Negotiations' With Microsoft To Avoid Closure
The three studios I predicted. This industry has become volatile with all the big publishers selling or shutting studios down, staff moving from one studio to another constantly, developers fired after releasing a game, etc. I hope that it's like Tango, that the ones that wanted to stay in the studio stay and the others find a position elsewhere, or Toys For Bob, that became independent and now work with Xbox. What I can say is that if you really care and want to support your favourite studio or IP, buy its games.
It's not just the games underperforming, though. I love single-player games and I have played these three, but Compulsion took seven years to make a short single-player game. Ninja Theory took four years to develop a shorter single-player game. Double Fine invested four years of development in a very short game. The first one is fine but rough. The second, I think, is the most impressive Unreal Engine 5 game, but shorter and linear and with little gameplay. The third is a very nice game, but even shorter. The development time of these three games is another argument that I knew was employed. Considering how short these games are and the development times, I think that these studios became slower and lazier under Xbox's umbrella because of the hands-off/trusting approach of Phil Spencer, and I also think they received a warning eventually because of Double Fine and Ninja Theory speeding development up with Kiln and Senua (3).
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Enriesto I agree with you. When I have talked about the hands-off approach by Phil Spencer in the past, I've always referred to it as a double-edged sword. If the studio is not just working on its own but also meeting reasonable expectations, it's perfectly fine, although communication never hurts. In other cases, it has led to members arguing with each other without any kind of team work. The best examples are Playground and The Initiative. Hierarchy, not tyranny, is needed. It's great to have a good leader. In other cases, the hands-off approach has led to dragged or hell development. That's why some Xbox studios excel and others don't. I'm sure that this is over with Asha. She is turning Xbox into a tighter, more efficient business so it can be sustainable in the long term, something that, surprisingly, Nadella agrees with in his last interview, as he usually is seen as a short-term benefits businessman. Xbox makes a fortune but it's also bleeding money. That's why they need to make hard decisions.
Re: Compulsion Games Might Be Getting Shut Down By Xbox, Says Report
@DonnieTACO Which one? South of Midnight? Well, like others I criticised the gameplay back in the day. I posted about it on Last Game You Played, where I'm brutally honest about the games I play, whatever the studio. At the end of the day, it's my opinion. I can't say it's a bad game, but it's rough, and seven years is too much. The latter can also be said about Hellblade II (short game, 4 years) and Keeper (very short game, 4 years).
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Benjamin That's another thing, staff moving from one studio to another. There was a meme about Halo developers making Metroid Prime and vice versa. The positive thing is that most developers seem to find work elsewhere, but studios are volatile.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Friendly That's fine. I also think that Xbox is the most consumer-friendly platform. What I was trying to say is that the three of them are looking at the numbers. I supported the idea of shutting new and messy studio The Initiative down even before it happened, but I've always criticised the cancellation of Perfect Dark and not hiring Crystal Dynamics, that were already working on it. Xbox as a platform has good and bad things, like PS and Nintendo. Like you, I thought that Nadella was bad, but now I'm not sure if the others are any better. At the end of the day, we should enjoy games and not get carried away with questionable business decisions that affect not only our consoles but almost everything that we use and buy in our lives. If we criticise them, let's do it fairly and across the board. By the way, I don't consider you a troll and this is why I reply. 😊
@Enriesto
This is absolutely right and match what those workers in developed countries described.
As I said earlier, Xbox is/was more hands-off, at least during Phil Spencer's tenure, which doesn't mean that they won't shut an underperforming studio down after assessing the results.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Friendly I'm not saying that this (if true) is good news, I'm saying that the three of them are a ruthless business because the whole world is ruled by money, sadly. Nintendo is considered a skeleton company regarding development for the size of their gaming business. Most of their games are outsourced. Don't forget that people working for you is as important as people that are working for you via outsourcing. Nintendo do that just to save money and headaches. Besides, as a Nintendo fan, I read all the Iwata Asks and the pressure within the company was real and officially admitted.
@somnambulance You should not worry nor be relieved until any of these pieces is officially confirmed.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Friendly Expected of you to defend Nintendo with the disproportionate hatred towards Xbox.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Enriesto Mercury Steam (outsourced Metroid) and Naughty Dog (first-party Sony studio) are very good examples. Actually, I think that Xbox has been the most hands-off, so friendlier in a sense, at least during Phil Spencer's tenure. That doesn't mean that it's the ideal approach nor that they are not going to look at a failed project seven years later and shut a studio like The Initiative down. It's a business like Nintendo and PS, but it's very hypocritical of them to consider Xbox evil and Nintendo (or Sony) kind.
Re: Compulsion Games Might Be Getting Shut Down By Xbox, Says Report
As I posted on the last article, all of them are the same and check the numbers. Xbox, Sony and Nintendo. The only difference is that Nintendo heavily relies on outsourced development, which doesn't mean that the work conditions are better nor more stable (ask Mercury Steam ex-workers). None of them is the good guy in this industry.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Enriesto That's absolutely true and what some people want to ignore thinking that Nintendo is the good guy in this industry that keeps everyone home and happy. A Mercury Steam (Metroid) ex-worker said that conditions were not that great in an interview.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@LaurenceJ1987 Yes, it could be those two.
@Lysterao I agree, it could also be Arkane despite Deathloop being critically acclaimed and Blade being in development. We don't know. The Initiative is an exception. The studio was new and a mess according to the people that joined and left. However, Xbox should have hired Crystal Dynamics for finishing Perfect Dark, because they were saving the project.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@AI-Generation If people checked how many Nintendo games are developed by Nintendo since the Nintendo Switch released, they'd be shocked!
Re: Compulsion Games Is Being Shut Down By Xbox, Says Report
I remember that area in the screenshot clearly. Absolutely stunning game, but it took seven years to develop and, unfortunately, was not successful enough to justify the investment in the studio.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@FatGuyInLilCoat Or maybe they are just getting rid of studios like Sony and everyone else except Nintendo that oursources most of their games.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Bob_Tempura Agree about Sony Japan and Tango. 🥲
@Elbow Rare also supports other studios. At the very least, they worked on Killer Instinct 3, Battletoads and another one that wanted to get the water physics right, don't remember which right now. As you said, it took seven years to develop South of Midnight. It took Ninja Theory four years to develop Hellblade II. Both are relatively short single-player games. Interestingly, both Double Fine and Ninja Theory sped development up recently with Kiln and Senua (3).
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@AI-Generation That's what Asha said they need to do, despite PS "misunderstanding" and presenting it as Xbox wanting to make more games and faster. I hope that they are also going back to some of their iconic IPs. Basically, you are right, they want to be a bit more like Sony and Nintendo in that sense, so they don't bleed cash because of underperforming studios, although Nintendo is different because it heavily relies on outsourced development.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@Daniel1221
Turn 10 is already supporting Playground and Playground used their technology for building Forza Horizon, so it makes total sense.
@Sheppard I think that Undead Labs is safe. I hope I'm not wrong. After a rough launch, State of Decay 2 became an excellent game whether you play offline or online and they finally overcame the development problems of 3.
@LaurenceJ1987 Keeper is a very nice game that I enjoyed. Perfect for Game Pass. The only problem I see with Double Fine is that it took them four years to release a very short single-player game.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
@ScalenePowers Often this happens after releasing a new game. Senua launches in 2027. This rumour says 2026, but it's just a rumour. All studios are working on at least one game, or they should. That doesn't matter.
Re: Rumour: Journalist Suggests Two Xbox Studios Are 'At Risk Of Being Closed' In 2026
I posted on the other article before reading this that the most likely are Ninja Theory, Compulsion Games, Double Fine or Inxile. Everything that Asha and Nadella say hint at a more "core" and efficient Xbox, with a simpler infrastructure and focused on beloved IPs and well-performing games, so these are the studios that I think could be affected by this Xbox reboot that, at the same time, wants to go back to being a differentiated platform with exclusives as the others, which means they are keeping the studios and IPs that are more successful and influential.
Re: Two Key Members Of Xbox Game Studios Are Stepping Down
@oopsiezz They are not and they don't work at Rare now, in between. The most likely are Ninja Theory, Compulsion Games, Double Fine or Inxile.
Re: Two Key Members Of Xbox Game Studios Are Stepping Down
I never liked any of them as Rare's leaders.
Re: These Are The Top 10 Xbox Backwards Compatibility Requests After 750,000 Votes
The ones I miss the most are Project Zero/Fatal Frame 1 and 2 (Xbox) and Sonic & Sega All-Stars Racing (Xbox 360).
Re: 'We Have To Turn This Into A Sustainable Business' - Microsoft CEO Discusses Future Of Xbox
@oopsiezz The interview and letter explain that there is not a simple reason. People are making assumptions and guesses like it's because of Game Pass or because games are not selling, but what she's saying is that the infrastructure is bloated, it's not efficient, they have too much staff, they rely on vendors and they are slow-reacting. If you adjust what's not working, the 3% number will improve significantly even before tackling studios.
She also acknowledges that not all games and studios are performing well and that's another factor and a common problem that all big publishers have and need to adjust, even Sony with twice as many (2.5x) consoles sold and not that many studios and exclusive games. Basically, she will cut the fat to make Xbox more "core", smaller in infrastructure, with more Game Pass tiers, more focused on the studios and IPs that perform well and with more exclusives and platform identity.
Re: 'We Have To Turn This Into A Sustainable Business' - Microsoft CEO Discusses Future Of Xbox
To give more context to the active users on Xbox consoles,
https://sensortower.com/report/state-of-gaming-2026/download
https://www.thurrott.com/games/333049/report-highlights-best-selling-videogames-of-2025
Re: 'We Have To Turn This Into A Sustainable Business' - Microsoft CEO Discusses Future Of Xbox
Because there's no reason to ditch Xbox. I agree that the current-gen is capable of much more. That's why they're supporting X|S and why I think that the next cross-gen period will be as long as the current one. Sony will do the same. We still call them generations but the frontiers are fading.
Not being subsidised doesn't equal to cost being as much as a gaming PC. Console manufacturers sign deals for closed specs. Besides, a console's capabilities are greater than the equivalent specs on a PC because of customisation. Actually, I think that Steam Machine, the one you mentioned, is one that will be more an off-the-shelves computer and worse value.
Re: 'We Have To Turn This Into A Sustainable Business' - Microsoft CEO Discusses Future Of Xbox
@Skinny-Pete I liked the campaign of Black Ops 6, too. This year's entry is looking good. We'll see!
Re: 'We Have To Turn This Into A Sustainable Business' - Microsoft CEO Discusses Future Of Xbox
@Schonks That's right and the reason why Game Pass is being adjusted but won't disappear. Many companies would like (or have) a subscription like that, but Xbox has many beloved IPs and games to make it worthwhile. Games that didn't necessarily sold a lot of copies on day one have subscribers playing them years later, on top of games that sell well and also get a lot of players via Game Pass. Besides, first-party games don't leave the service, making the library bigger every year. That aside, Capcom, Ubisoft and Square Enix have all said that they're happy with their games selling digitally years later even if the price gets lower.
Re: 'We Have To Turn This Into A Sustainable Business' - Microsoft CEO Discusses Future Of Xbox
@Skinny-Pete @eduscxbox The last Call of Duty was considered disappointing by fans and reviewers, but still was one of the best-selling games of the year (#5). I want to see how Call of Duty: Modern Warfare 4 performs because it looks like a much better entry.
Re: 'We Have To Turn This Into A Sustainable Business' - Microsoft CEO Discusses Future Of Xbox
@Kilamanjaro It makes total sense for Xbox to release consoles because they have a store with a gigantic amount of content. If Xbox is going to be on PCs via Xbox on PC, why not on a console as well? Microsoft also manufacture Surface computers and they don't expect to sell more units than Asus. Helix is built as a custom gaming PC, but so were Xbox One and PS4 but with specific stores. The only potential problems with consoles are:
1) Being subsidised: they likely won't be subsidised anymore.
2) Having a specific store not available elsewhere: no longer the case with Helix, but still Series X|S were greatly supported by third parties.
3) Requiring specific ports: they won't be required, but still Xbox One and Series X|S were also supported by third parties despite being third in the console space, with Xbox One starting Play Anywhere but with different builds for console and PC.
Remember also that Xbox has 50m+ of active console users right now.
There are many ways to improve the Xbox business and making it more efficient, but killing Xbox consoles is the one that makes less sense and the one they will not do. Moreover, they need to protect their console, the opposite of what Sarah Bond did, for the sake of the Xbox ecosystem.
Re: 'We Have To Turn This Into A Sustainable Business' - Microsoft CEO Discusses Future Of Xbox
He's right. They have invested a lot in content and I don't mean acquiring ABK specifically, but the fact that until 2017 they only had Rare, Mojang, Turn 10, 343 Industries and The Coalition. Now, they have a rich portfolio of IPs and around 40 studios.
By merging the console and PC store it will be much easier to reach a greater number or users. PC has 1.8b players. Some multiplatform and PC players are starting to buy more Xbox games because of Play Anywhere. Besides, Xbox ports will not be required because the console will run PC games, on top of Xbox games via backwards compatibility. That's why I'm not worried about my Xbox library, at all. Something I can't say about the (great) Nintendo games I've been buying on Nintendo's digital stores.
They have everything they need: hardware, OS and software. Next generation, there will be several hardware options, expensive and cheaper: the high-end Helix, dockable handhelds by Asus and more. Hardware will probably be not subsidised from now on and console sales won't matter as much.
According to what The Information reported, Xbox will develop more of their beloved games and IPs. That's basically what all publishers are doing, but I believe we'll still be seeing smaller projects and new ideas that work like Grounded. Game Pass can be adjusted in many ways. Asha teased new tiers in the interview, but it will never disappear because it's the best way to make the best of their huge library, growing each year.
They will need to cut the fat as per sections 4 and 5 of the letter. The fourth is about studios and software, but the fifth is about the infrastructure and lack of efficiency and it's essential because it can be fixed without affecting the content output. If this reboot ordered by Nadella and executed by Asha is needed because Xbox is too oversized in terms of staff and structure and therefore it's bleeding money despite the fortune they make yearly, there's no other way forward. I congratulate them on acknowledging problems and finding solutions.
Re: Talking Point: What Are You Playing This Weekend? (June 13-14)
@Lightbubulz The "corridors" definition is an exaggeration in this case, but be a bit patient because, as most Final Fantasy games, each one has different battle mechanics. It took me a little time, but I loved the three of them for different reasons. As a bonus, the Final Fantasy XIII trilogy looks and plays better than ever on Series X.
Re: Talking Point: What Are You Playing This Weekend? (June 13-14)
Some Monster Hunter World online and I'm going to start Fable II because I've only played the first one, with all achievements except the Smart Glass device one. I have tried Crash Bandicoot 4 on Game Pass but it is a lot worse than the trilogy. Washed-out colours, level design based on memorising rhythmic patterns of (crouch)-jump-additional action and guessing where hidden crates might be in very long level. I'd rather complete the remake trilogy again 100%, which I love.
Happy weekend!
Re: 'Nothing Is Impossible' - Stellar Blade Developer Responds To Demand For An Xbox Port
@Elbow I'm also glad you were wrong when we discussed this. 😂
Re: 30+ Of The Best Games In Xbox's Latest Buy One, Get Two Free Sale
@Nic-Noc20th-C I guess everyone is wondering which three.
Re: Xbox's New Startup Animation Is Now Live For Everyone, Plus Four Other New Features
To be specific, I like the library upgrades we've been seeing lately. It makes much easier to see in a tidy manner which games you own, are on Gold (always included with Game Pass), your current Game Pass titles, etc. You no longer forget about games just because they are not installed. That's probably my favourite thing about the whole Xbox user interface. That and the handy shortcuts. I also appreciate the higher artwork resolution and that we will be able to choose the cover art instead of the tiles if we want to, kind of showing a physical collection on the screen.
Re: Report: Xbox Set For Major Job Cuts, Studio Closure Or 'Lineup Changes' Could Be Involved
@cragis0001 I guess we'll have to wait and see what marketing they do from now on. A Gears of War E-Day bus stop ad as an Xbox exclusive would be cool, but making Xbox games exclusive is intrinsically viral marketing, you have people and websites doing the job for you.
Re: Xbox Thanks Fans For Patience Following Multi-Hour Server Outage
I see. I have no idea, to be honest. It showed up correctly on mine. Perhaps it's a glitch that will be fixed.
Re: Xbox Thanks Fans For Patience Following Multi-Hour Server Outage
Glad to know it's been solved. I wonder if it is because of Forza Horizon 6 like another user said.
@ElectricWizard Yes. I just checked and if your system is completely shut down and you turn it on, the new animation shows up.
Re: Xbox Leaders Outline Five 'Realities' That Will Be Addressed Over The Next 100 Days
For clarification, although all my sentences had that clarification included and conveniently ignored, when I say that Xbox makes a fortune, I also say that numbers are not working out. How could we know that before this letter? We all were guessing if the strategies were working well or not, but we didn't know, including the ones that being always negative are obviously right sometimes. Not all, but people that like Xbox tend to be positive and people that don't like Xbox tend to be negative with their guesses on this site. Now we finally know because of Asha's statement and I'm happy to know the truth. If profitability has went from 15%-20% (posted by other users with sources) to 3%, it means that something wasn't working lately.
I think that the main problem is the damage done to the brand and that's what Asha is rebooting it, but it's also that PS5 ports haven't paid off in terms of sales (data-driven) and platform identity (strategy-driven), because Xbox is constantly compared to PS and Nintendo. But, as we know, Xbox owns massive multiplayer IPs that make sense everywhere. Even for Sony would make sense to have whatever massive multiplayers they have saved everywhere.
The fourth section is about the software. They have many great studios, we all agree about it, but the whole thing is bloated and not everything within is being efficient and, in that sense and sadly, they need to cut something as every other big publisher.
I still think that Phil had great ideas like Game Pass and I see that expanding and growing, but Asha was right to remove Call of Duty and make it cheaper. She teased more tiers in the interview. Some people insist on Game Pass players being trained to not buy games, but we know that it's an unfounded lie and Forza Horizon 6 is just one example more.
We should be paying more attention to the fifth section, because when the infrastructure is huge, fragmented, slow-reacting and depends on third parties unnecessarily, fixing that improves the financial performance of the business without affecting content output. Cut the fat and Xbox will make the most of their income and still produce amazing games.
Re: Report: Xbox Set For Major Job Cuts, Studio Closure Or 'Lineup Changes' Could Be Involved
@cragis0001 I see a connection because making games exclusive is a viral marketing campaign under the current circumstances.
Re: Halo: Campaign Evolved Comparison Shows Difference Between Xbox Series X And Ally X
It's great news that it looks and performs so well on Series X because that's where I'm going to play it.
Re: Xbox Leaders Outline Five 'Realities' That Will Be Addressed Over The Next 100 Days
@betterthings Great post! I had forgotten that Sony changed parts of the PS5 with cheaper replacements, e.g., the cooling system. I think, as have been posted before by many, that Phil thought that multiplatform was the solution. I remember when he said that people aren't buying their consoles and not paying attention to their games even when they're critically acclaimed, which I think it was not exactly the case but his perception comparing Xbox and PS. He was big on Game Pass and I agreed with that. Sarah thought that they could find players on Cloud and mobile, but console games are not what mobile players are after. Everything together means not giving much importance to the current-gen consoles and not having enough stock in many EU countries, yet they had Helix, Xbox on PC and Rog Xbox Ally X planned, which I think were all great ideas.
Asha is not a gamer and is not under the influence of nostalgia. She is set on rebooting Xbox. Despite the fortune that Xbox makes yearly, profitability has plummeted because their recent business strategies haven't paid off. There's also a bloated infrastructure and lack of efficiency. The fifth section of the message reflects that. The fourth section addresses the software area and seems to be hinting at a new balance that still provides great content as they already have, exclusivity to a certain degree to become a differentiated platform and, sadly, getting rid of studios that are bleeding money without releasing well-performing content.
Re: DOOM: The Dark Ages Brings Its 'Revelations' Expansion To Xbox In July
@betterthings Thanks. I watched a DF video saying that the engine wasn't designed for other types of games in the Q&A section, yet Indiana Jones and the Great Circle is a very different title with exceptional graphics and perfect performance. What an engine!
Re: Report: Xbox Set For Major Job Cuts, Studio Closure Or 'Lineup Changes' Could Be Involved
@CallMeDuraSouka
What are you talking about? I haven't said my opinion nor defended Microsoft. I said let me double check because, as I explained, I had read that it wasn't like that. Instead of speculating, I searched and literally posted the official statement. I don't know why you have a distorted perception of my posts when the only subjective thing I said is that I love the studio. By your logic, I could say that you're just hating Xbox.
Re: Xbox's 30-Minute Fable Gameplay Is Getting Great Feedback, Aside From Minor Concerns
One of my most anticipated games or the most. It looks awesome!