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Started By
Message
re: XBOX restructuring; laying off 3,200, spinning off some studios, no games canceled
Posted on 7/8/26 at 9:33 am to CornDogCologne
Posted on 7/8/26 at 9:33 am to CornDogCologne
quote:
Is the gamepass model profitable for the studios that have to include their high development cost products at launch date? Is it sustainable to provide all these products on a subscription based service?
COD being pulled off gamepass seems to indicate no.
The layoffs and closures seem to indicate no.
Maybe not, and if that is the case then Game Pass will likely end at some point. Or, at the very least, drastically change. That doesn't change anything I stated.
That said, June 2027 will be 10 years of Game Pass. Why would I, as a consumer, care how much money a company is making off a product it's providing? All consumers should care about is if it's worth the asking price, and it definitely has been for the entirety of that 10 years. I don't care how many Playstations or XBOXs are sold by each company. I care about who is giving me the better product. For 10 years, that's been XBOX (and Nintendo since the Switch released and got a decent game library started).
ETA: To be clear, leaks from the MS/ABK trial showed Game Pass to be profitable before that merger went through. I don't know what changed since then but Asha indicated in her post in my OP that it hasn't grown at the rate they expected. That doesn't necessarily mean it's unprofitable, but definitely means they need to adjust the model in some way to hit whatever targets they're looking for.
This post was edited on 7/8/26 at 9:41 am
1
Posted on 7/8/26 at 9:39 am to imjustafatkid
I only care about profitability in that it creates a sustainable environment for studios to create products.
If they are thrust into an environment where they must produce things for limited profit so they can be packaged into a subscription service for far less than they are actually worth, that is poor management.
I want to see studios like id thrive. Gamepass ensures that they will not.
I don’t mind paying 60-80 bucks per game to ensure I get a quality game like doom that I can access whenever I want. I detest the idea of paying a lesser amount per month to rent doom which inevitably leads to the failure of the studio that makes it.
Game pass is a shite idea and it needs to die before it kills off or neuters any other studio I care about. The only reason it was conceived was due to desperation after getting skullfricked by Sony in sales after botching the Xbox one launch terribly. One bad business decision begets another.
If they are thrust into an environment where they must produce things for limited profit so they can be packaged into a subscription service for far less than they are actually worth, that is poor management.
I want to see studios like id thrive. Gamepass ensures that they will not.
I don’t mind paying 60-80 bucks per game to ensure I get a quality game like doom that I can access whenever I want. I detest the idea of paying a lesser amount per month to rent doom which inevitably leads to the failure of the studio that makes it.
Game pass is a shite idea and it needs to die before it kills off or neuters any other studio I care about. The only reason it was conceived was due to desperation after getting skullfricked by Sony in sales after botching the Xbox one launch terribly. One bad business decision begets another.
This post was edited on 7/8/26 at 9:45 am
Posted on 7/8/26 at 9:49 am to CornDogCologne
quote:
I only care about profitability in that it creates a sustainable environment for studios to create products.
Well...Microsoft definitely gave studios that. Also, even if it ended today, 10 years is an eternity in the gaming industry. Not many things last that long. Game Pass has, objectively, been a success in the gaming industry. It has lasted through 2 console generations, and definitely won't be completely ending even if they revamp it in some way (which is likely).
quote:
If they are thrust into an environment where they must produce things for limited profit so they can be packaged into a subscription service for far less than they are actually worth, that is poor management.
This obviously hasn't been the case. What we're seeing with the layoffs and studio spinoffs is many of these studios were given a blank check and have been producing nothing at all. It would be hard to defend any of the studios affected under your stated premise.
quote:
I want to see companies like id thrive. Gamepass ensures that they will not.
The most recent Doom game just didn't perform well. I thought it was fun, but people didn't buy in to the "dark ages" thing. That's the only game they've released under Microsoft.
quote:
I don’t mind paying 60-80 bucks per game to ensure I get a quality game like doom that I can access whenever I want. I detest the idea of paying a lesser amount per month to rent doom and lead to the failure of the studio that makes it.
id Software hasn't been shut down, so your comment makes no sense. Microsoft directed them to spend more time on their tentpole franchises and release more Doom and Quake games.
ETA:
quote:
Game pass is a shite idea and it needs to die before it kills off or neuters any other studio I care about. The only reason it was conceived was due to desperation after getting skullfricked by Sony in sales after botching the Xbox one launch terribly. One bad business decision begets another.
No studios were shut down. Since Game Pass started, Sony has closed more studios than Microsoft. If this is your metric, you should be firmly in the XBOX camp.
This post was edited on 7/8/26 at 12:58 pm
Posted on 7/8/26 at 9:59 am to imjustafatkid
you guys have jobs, right?
Posted on 7/8/26 at 10:00 am to sicboy
quote:
you guys have jobs, right?
I make the rules at my job.
Posted on 7/8/26 at 10:02 am to sicboy
Don’t you have some more Reddit memes to post?
Posted on 7/8/26 at 12:04 pm to imjustafatkid
Microsoft somehow hired over 28k H1Bs from FY2023 to Q1 FY2026, but yay layoffs!
Posted on 7/8/26 at 12:33 pm to LemmyLives
Bet they kept those.
Posted on 7/8/26 at 12:53 pm to LemmyLives
quote:
Microsoft somehow hired over 28k H1Bs from FY2023 to Q1 FY2026, but yay layoffs!
Yeah this stuff needs to stop. No doubt about that.
Posted on 7/8/26 at 2:16 pm to LSBoosie
The moral of the story here is don't sell out to big corporations.
Of course the people who really benefit from these acquisition are looking for a quick payday and/or a cushy position on a corporate board and could give a frick less
Of course the people who really benefit from these acquisition are looking for a quick payday and/or a cushy position on a corporate board and could give a frick less
Posted on 7/8/26 at 4:07 pm to BulldogXero
It's coming out today just how badly id software was hit.
Company apparently had about 200 employees and 136 of them got laid off.
They actually have produced quality games on a regular basis which actually got attention. Doom the Dark Ages apparently sold quite poorly but that was largely due to game pass and an inflated price tag.
They were one studio that actually seemed high quality and delivering.
Maybe they were exceptionally expensive or something, regardless it sucks. They'll be a complete shell of whatever they were before and probably never the same again.
Company apparently had about 200 employees and 136 of them got laid off.
They actually have produced quality games on a regular basis which actually got attention. Doom the Dark Ages apparently sold quite poorly but that was largely due to game pass and an inflated price tag.
They were one studio that actually seemed high quality and delivering.
Maybe they were exceptionally expensive or something, regardless it sucks. They'll be a complete shell of whatever they were before and probably never the same again.
Posted on 7/8/26 at 4:34 pm to StansberryRules
I'd wager that all 4 of the studios that MS put out to pasture will be shuttered in a matter of 2-3 years. Id has been reduced to a support studio. Arkane will likely end up the same.
What a fricking disaster. Id has some of the most talented engine programmers in the world and they released polished, high quality games at a consistent pace. Brutal
What a fricking disaster. Id has some of the most talented engine programmers in the world and they released polished, high quality games at a consistent pace. Brutal
Posted on 7/8/26 at 4:42 pm to Carson123987
I give the Microsoft PR team some credit.
1. Asha says, "None of our first party publicly announced games or projects are being cancelled as part of these reductions."
Then news comes out that an Avowed sequel and other Obsidian projects have been canceled. Asha's statement is still true since those weren't "publicly announced."
2. No studios officially "closed," yet targeted layoffs ensure said studios will not be able to continue to make games.
1. Asha says, "None of our first party publicly announced games or projects are being cancelled as part of these reductions."
Then news comes out that an Avowed sequel and other Obsidian projects have been canceled. Asha's statement is still true since those weren't "publicly announced."
2. No studios officially "closed," yet targeted layoffs ensure said studios will not be able to continue to make games.
This post was edited on 7/8/26 at 5:14 pm
Posted on 7/8/26 at 5:37 pm to StansberryRules
quote:
Company apparently had about 200 employees and 136 of them got laid off.
Mostly the id Tech team it seems. Sucks, but if MS isn't going to use that platform to make games then what's the point of keeping that team?
Posted on 7/8/26 at 5:52 pm to Carson123987
quote:
I'd wager that all 4 of the studios that MS put out to pasture will be shuttered in a matter of 2-3 years.
They haven't been releasing games, so that will likely continue and you will be correct. You actually have to create a product for people to purchase it.
quote:
Arkane will likely end up the same.
Were you a big fan of Redfall? I guess Deathloop was okay but I got bored with it pretty quickly.
It's like y'all expect MS to just keep giving studios endless budgets to overpromise and underproduce. But I'm sure most here would also claim the underperformance is Microsoft's fault.
quote:
What a fricking disaster. Id has some of the most talented engine programmers in the world and they released polished, high quality games at a consistent pace. Brutal
Seems odd to see people say this. I liked Doom The Dark Ages, but I didn't see many other people claim to enjoy it. They haven't really released anything else under Microsoft.
This post was edited on 7/8/26 at 6:27 pm
Posted on 7/8/26 at 6:28 pm to imjustafatkid
if you asked 100 people if you liked doom 2016 doom eternal and doom dark ages it'd prob be 40 40 20. dark ages was not great, but the dlc looks good to be fair
This post was edited on 7/8/26 at 6:29 pm
Posted on 7/8/26 at 6:32 pm to geauxtigers87
quote:
if you asked 100 people if you liked doom 2016 doom eternal and doom dark ages it'd prob be 40 40 20. dark ages was not great, but the dlc looks good to be fair
It definitely was an odd choice of follow up, but based on when it was released that decision was likely made before they were brought in to XBOX.
It's wild that a team of 200 hasn't released anything else. I can't believe no one at these studios ever stepped back and said, "man, we really need to start justifying our jobs." It's like there were entire companies who felt they just deserved a salary without ever showing results.
This post was edited on 7/8/26 at 6:34 pm
Posted on 7/8/26 at 6:34 pm to imjustafatkid
quote:
Were you a big fan of Redfall? I guess Deathloop was okay but I got bored with it pretty quickly.
No, Redfall was shite and Deathloop was mid despite the strong critical reception. Redfall was a Zenimax-mandated production and many of Arkane's strongest developers quit during production because that's not what they came to Arkane to make. Zenimax owns that massive L. The Austin office that made it has been closed for a while.
quote:
Seems odd to see people say this. I liked Doom The Dark Ages, but I didn't see many other people claim to enjoy it. They haven't really released anything else under Microsoft.
I thought Dark Ages was a good game but a bit of a letdown for a Doom game - just didn't shake things up enough from 2016 or Eternal. It was still a highly polished and optimized experience though. The reason it failed was because of Day 1 Gamepass
quote:
You actually have to create a product for people to purchase it.
The problem is that the average AAA dev cycle is 5-6 years now, so if your game doesn't do numbers, you're probably going under. Everything has to be a massive hit if you want to keep your studio open, so devs are taking less creative risks and sticking to mass-market conventions that are more likely to sell.
Posted on 7/8/26 at 7:38 pm to geauxtigers87
Yes I loved 2016, was absolutely awesome.
The gameplay of Eternal was incredible, the tone wasn't quite Doom enough for me, I wasn't a fan of the venture into high fantasy. To me Doom is fundamentally military/industrial/mars, that's what 2016 captured so well. But the intensity of the fighting in Eternal is absolutely crazy.
Dark Ages, found it very underwhelming. Extremely easy, didn't feel like Doom, the Dragon and Mech sections were completely "meh" but even despite that it was a great single player game, but definitely not what I was looking for in a Doom game.
One slightly underwhelming game shouldn't in theory be enough to shutter a historically successful and prominent studio though, I get the feeling it was more than just that.
The gameplay of Eternal was incredible, the tone wasn't quite Doom enough for me, I wasn't a fan of the venture into high fantasy. To me Doom is fundamentally military/industrial/mars, that's what 2016 captured so well. But the intensity of the fighting in Eternal is absolutely crazy.
Dark Ages, found it very underwhelming. Extremely easy, didn't feel like Doom, the Dragon and Mech sections were completely "meh" but even despite that it was a great single player game, but definitely not what I was looking for in a Doom game.
One slightly underwhelming game shouldn't in theory be enough to shutter a historically successful and prominent studio though, I get the feeling it was more than just that.
This post was edited on 7/8/26 at 7:40 pm
Posted on 7/9/26 at 2:29 am to Carson123987
quote:
The reason it failed was because of Day 1 Gamepass
I don't think this is true. Lots of games hit Game Pass day 1 and still don't fail. I wonder if the DLC presales were bad and that was the kicker.
quote:
The problem is that the average AAA dev cycle is 5-6 years now, so if your game doesn't do numbers, you're probably going under. Everything has to be a massive hit if you want to keep your studio open, so devs are taking less creative risks and sticking to mass-market conventions that are more likely to sell.
This is definitely an issue. 5-6 year turnaround time is pretty awful honestly.
This post was edited on 7/9/26 at 2:33 am
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