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Forums - Microsoft Discussion - Deep cuts at Xbox Europe as Nadella swings axe

Burek said:
Wow, Nadella is really laying it onto XBox. See what happens when you're deemed non-core... I guess they themselves don't have much hope in Tier 2 countries...


Except that none of these layoffs impact The Games Studios at all or affect game development the Entertainment studio wans't neccessary at all and wouldn't help Xbox he basically killed Mattricks legacy and vision.



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kitler53 said:

OT - i don't even know what this means...

"A source told MCV last night that as many as 75 per cent of full time Xbox EMEA roles in Reading were being cut"

roles in reading means what?   is that like staff to do game localization? marketing?  ..guys paid to sit around and enjoy huck fin?

After finishing a game did you actually sit through the credits.  In order to get you the game, there is a huge amount of people that are involved in a project.  Those non developer people are the ones getting axed.  As a global company, MS could be putting a lot of that work in one place and only need staff finalize that work within the country the product is selling in.



Machiavellian said:

Just making a guess but not sure if anyone really cares about MS android patents.  Its not game related and its not like MS is hard up for money.  Anyway, couldn't you just have created another thread for that info.


not game related?  well.. if i recall.. these patents possibly play an important part in xbox finances..

"According to Nomura analyst Rick Sherlund, however, Microsoft isn't quite over that hump just yet. It is, in fact, bleeding money at an alarming rate, but nobody's noticed because the losses are masked by Android licensing revenues.

"If we start with the overall traditional [Entertainment and Devices Division] business that actually loses money before corporate allocations and back out the nearly $2 billion 95 percent gross margin Android phone royalties, we conclude that Xbox platform plus Windows phone and Skype lose about $2.5 billion per year, and we estimate that the Xbox platform may account for roughly $2 billion of this," Sherlund said.

That staggering loss, he added, "is concealed by the hugely profitable Android royalties" that come out of licensing deals Microsoft has with makers of Android devices, which were forced by Google's infringement on various Microsoft patents during the development of the Android OS. Xbox is a "cool" product and successful consumer franchise, Sherlund said, "but it also loses a lot of money and we think is a distraction to the more enterprise strengths of Microsoft."

http://www.escapistmagazine.com/news/view/129463-Microsoft-Loses-2-Billion-Per-Year-On-Xbox-Analyst-Says

and i didn't want to start another thread for the fact that there already are too many doom and gloom MS threads..

oh well..



Man.. I hate it when your girl has to leave my place to come back to you..

EspadaGrim said:
Burek said:
Wow, Nadella is really laying it onto XBox. See what happens when you're deemed non-core... I guess they themselves don't have much hope in Tier 2 countries...


Except that none of these layoffs impact The Games Studios at all or affect game development the Entertainment studio wans't neccessary at all and wouldn't help Xbox he basically killed Mattricks legacy and vision.

Yes, I realize that. But I also realize that Mattrick's vision was the only vision for XBox. 

And sure, games are "still" untouched, but this move signals a clear admission of defeat outside of Americas. They are scaling down their marketing presence across EMEA to focus on salvaging what can be done at home.



75% that's not cutting away the fat, that's cutting it down to the bone!



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That's sad.

They missed the opportunity to rename/restructure RARE to end the ebarrassment. Don't get me wrong, I don't want the people to be fired, but using that name isn't good for them.



Well it should be MS's fault for mishandling the XBox launch. But ill blame this on Sony for PS4 being too successful. Sony......not leaving room for competition to thrive. MS let you thrive last gen and you don't even reciprocate....



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

BillyBong said:
Machiavellian said:

Just making a guess but not sure if anyone really cares about MS android patents.  Its not game related and its not like MS is hard up for money.  Anyway, couldn't you just have created another thread for that info.


not game related?  well.. if i recall.. these patents possibly play an important part in xbox finances..

"According to Nomura analyst Rick Sherlund, however, Microsoft isn't quite over that hump just yet. It is, in fact, bleeding money at an alarming rate, but nobody's noticed because the losses are masked by Android licensing revenues.

"If we start with the overall traditional [Entertainment and Devices Division] business that actually loses money before corporate allocations and back out the nearly $2 billion 95 percent gross margin Android phone royalties, we conclude that Xbox platform plus Windows phone and Skype lose about $2.5 billion per year, and we estimate that the Xbox platform may account for roughly $2 billion of this," Sherlund said.

That staggering loss, he added, "is concealed by the hugely profitable Android royalties" that come out of licensing deals Microsoft has with makers of Android devices, which were forced by Google's infringement on various Microsoft patents during the development of the Android OS. Xbox is a "cool" product and successful consumer franchise, Sherlund said, "but it also loses a lot of money and we think is a distraction to the more enterprise strengths of Microsoft."

http://www.escapistmagazine.com/news/view/129463-Microsoft-Loses-2-Billion-Per-Year-On-Xbox-Analyst-Says

and i didn't want to start another thread for the fact that there already are too many doom and gloom MS threads..

oh well..

The fact that Skype, Windows Phone, Bing, Surface,  and a host of other stuff are within the same Entertainment/Devices unit, there is no way for anyone to know if the xbox division is losing money.  Just the fact that XBL is a revenue maker alone and the 360 is also very profitable, where exactly is MS losing money from the Xbox division.  The X1 hardware is also profitable or pretty close as was shone by many different breakdowns of the hardware.  

One of the main reasons why some investors want MS to spin off the Xbox division is not that its losing money but instead it makes money.  They want MS to only concentrate on their core and Spin off the Xbox division for a brief revenue gain and increase in the stock price. There are plenty of graphs out there that suggest that the Xbox is the only division that makes money within the EDD group.

Also in your link you forget to mention that Sherlund is an opinion piece not fact.  Sherlund does not know the make up of profit and losses between all the business units that make up  Entertainment and Devices than anyone else outside of MS.  

Again, why don't you spin this off in its own separate thread where it can really be discussed.  This is my last reply on the subject here.



sales2099 said:
Well it should be MS's fault for mishandling the XBox launch. But ill blame this on Sony for PS4 being too successful. Sony......not leaving room for competition to thrive. MS let you thrive last gen and you don't even reciprocate....


LOL :) 



Machiavellian said:

The fact that Skype, Windows Phone, Bing, Surface,  and a host of other stuff are within the same Entertainment/Devices unit, there is no way for anyone to know if the xbox division is losing money.  Just the fact that XBL is a revenue maker alone and the 360 is also very profitable, where exactly is MS losing money from the Xbox division.  The X1 hardware is also profitable or pretty close as was shone by many different breakdowns of the hardware.  

One of the main reasons why some investors want MS to spin off the Xbox division is not that its losing money but instead it makes money.  They want MS to only concentrate on their core and Spin off the Xbox division for a brief revenue gain and increase in the stock price. There are plenty of graphs out there that suggest that the Xbox is the only division that makes money within the EDD group.

Also in your link you forget to mention that Sherlund is an opinion piece not fact.  Sherlund does not know the make up of profit and losses between all the business units that make up  Entertainment and Devices than anyone else outside of MS.  

Again, why don't you spin this off in its own separate thread where it can really be discussed.  This is my last reply on the subject here.


like i said.. don't need more doom and gloom MS threads..

also.. sources?  everything i've seen up to this point paints a different picture from what you are saying..



Man.. I hate it when your girl has to leave my place to come back to you..