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Bloomberg: Xbox is planning major layoffs next month, as new CEO Asha Sharma confronts a bleak picture and plans what she calls a "reset"

Do what the terminator couldn't!

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"Xbox is also planning to significantly slash budgets for marketing"

How will they get my beloved Spyro to 11m youtube views if they don't have a marketing budget anymore? F
 
So they decided to make Gears last minute exclusive, ignoring a playbase of 100 millions of PS5, while KNOWING that they're about to fire people cause the business isn't businessing?
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Did they kinda imply that the past 5 years have been horrific? 4 of those years has had project latitude, I guess the decision to go all in on third party…and yet still try and make consoles with 0 major reason to own your hardware was a failure…who could have seen that coming.

I lowkey like that this team is more real and honest then the "evreything is fine, we're making more money than ever crowd" But this almost doesn't seem fixable, hope for the best.
 
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Just make 3 Console SKUs
And fuck us over like the Series S is doing. That's why so many games skip Xbox, because the Series S is making it difficult to actually make games now or they have to gimp and cut a lot of stuff on all versions, to get it running on the more shit versions of a console. Now we'll have 2 SKUs holding developers back.
 
And fuck us over like the Series S is doing. That's why so many games skip Xbox, because the Series S is making it difficult to actually make games now or they have to gimp and cut a lot of stuff on all versions, to get it running on the more shit versions of a console. Now we'll have 2 SKUs holding developers back.
I don't think anyone gives a fuck about this anymore.
 
Xbox desperately need to restructure their whole development pipeline. It will have taken almost 7 years to release Fable and State of Decay 3 following their announcements, and 7 years to release Gears E-Day after Gears 5. Perfect Dark didn't even see the light of day after 5 years and the Blade game is missing in action after almost 3.

Development times are longer now, yes, but these are still well above average waiting times, turning studio output into a once in a generational event. If they want to keep people as Game Pass subscribers, they need to get serious about rapidly releasing content on the fucking thing.

Exclusivity also matters a lot here, not so much for the reason of selling a specific piece of hardware, but because a subscription service's library will snowball and increase in value over time. A Game Pass sub granting instant access to dozens of top first-party games goes out the window the second MS just prostitutes them to competitor's devices and services (they gave away Grounded: Fully Yoked for free on PS+ this month ffs).
 
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We need to reassess the balance between these and our investment priorities for the next 5 years.

but our annual revenue has declined nearly half a billion during that time," she wrote. "Going forward, this cannot continue."



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"Let's reset for a stronger XBOX and build the #1 gaming and entertainment company.

Asha and Matt"
👆

If this is their ambition, they will fail catastrophically.
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I lowkey like that this team is more real and honest then the "evreything is fine, we're making more money than ever crowd" But this almost doesn't seem fixable, hope for the best.

The first bullet point of her email is literally that

" Over 1 billion players choose to play XBOX and our games each year, for a total of 72 billion hours across Console, PC, Mobile, and Streaming (excluding much of China and a few other properties). Our franchises are also among the largest and most beloved globally and are now breaking records in TV and film. Going forward, our competition is attention. There are more great games, TV series, franchises, creators, content formats, apps, etc., than ever before."


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We need to reassess the balance between these and our investment priorities for the next 5 years.

but our annual revenue has declined nearly half a billion during that time," she wrote. "Going forward, this cannot continue."



oVLQhOLhWYscRK5p.gif


"Let's reset for a stronger XBOX and build the #1 gaming and entertainment company.

Asha and Matt"
👆

If this is their ambition, they will fail catastrophically.
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Leave sweet fine honey sweet Asha alone.

AI and Asha are just doing what needs to be done for all of our shared futures together.
 
Imagine being dragged into and publicly humiliated at the Town Hall screamed you're an Xbox and then you're actually not an Xbox, just unemployed. Lol
 
That's an interesting time to start doing exclusives and limiting sales further.
I think they feel like the only chance the brand has at survival is exclusive content going forward. Clearly evreything else they did was wrong. Notice they even mentioned 3rd party exclusives….weird to mention if you only have two exclusives in the pipeline.
 
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Less than 35M consoles sold worldwide, 3% accountability margin, oh and "our business isn't particularly healthy so we're introducing 1 or 2 exclusives".
Microsoft is backing Xbox, they are not losing money they are just making less money… Don't worry about Microsoft financial issues, they are more than ok. We have to worry about the quality of the games that they are making, and by looking their latest "E3" showcase, i am satisfied.
 
Microsoft is backing Xbox, they are not losing money they are just making less money… Don't worry about Microsoft financial issues, they are more than ok. We have to worry about the quality of the games that they are making, and by looking their latest "E3" showcase, i am satisfied.
Nothing of what you said changes the fact that the Xbox division isn't in a financially good state. Sharma said as much.
 
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Hardware subsidies have to be the first to go. Just make 3 Console SKUs at various power levels and price points, let people choose what they can afford.

That ain't gonna work either, you can't release 3 skus and see how 1 or 2 just bomb while the last one is the real seller, manufacturing, shipping, product placement and advertisement for the damned things are also added to the equation

Sony hasn't gone broke, so it checks out.

You're right, FAILGAMES and HORIZON LANDWHALE ADVENTURES didn't come out yet...

MS is just (if not more) woke than Sony. So.... 🤷🏻‍♂️

Touche, I don't pay much attention to MS games other than their triniry since this whole gen has been a disaster so i'm out of the loop, just happy I can play Halo, Gears and FH on PS, so they're cool in my book
 
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