It's always a sad day when peoples favorites studios close down. Unfortunately, nothing anyone can do about it.
We need to understand this won't be the last time we see studios close, and it won't just be Microsoft either. The industry you game in has become very corporate. I wanted to explain some notes below for better understanding.
NINTENDO AND SEGA DAYS GONE
We have to accept the truth and move on with life. We no longer game in an industry that use to consist on Nintendo and Sega, those days are long gone. The industry has changed the moment the major leading corporations entered. The industry has become a money pit for major stake holders and its only going to continue this way moving forward.
VALVE AND NINTENDO ARE DIFFERENT
Yes, we don't see these decisions that often with Valve and Nintendo and that's due to the fact they are not owned or under greater power. They make all the decisions inhouse. Whereas Xbox and Playstation have to answer to Microsoft and Sony and their shareholders. This is why we will continue to see more closures moving forward. The moment Valve or Nintendo get brought out, you will notice the same trend with Xbox and PS happen to them.
POSITIVE REVIEWS IS NOT SUCCESS
It's nice to play a game with positive feedback however unfortunately that isn't success for businesses. All companies make games to make money, and if they are not making money, they will be internally reviewed which can lead to selling, closures and layoffs. All companies have budgets that have to align to, its not how much more money another company has in this case MS. No one wants to lose money when it comes to capitalism.
SAD DECISIONS CAN LEAD TO GREATER SUCCESS
Yes, sometimes making hard calls like what we have seen with MS lately, isn't as simple as turning off a light switch. No company wants to disband another company, it costs money to do that also. Sometimes you have to cut some to save others.
For example: Phil probably was given a bunch of studios by his higher ups and was told you need to cancel 4 of them, so the 4 he chose was probably to sacrifice to keep others afloat like maybe Rare, Ninja Theory, Obsidian, Double Fine, who knows. Thats the corporate speak that goes on behind those walls. I had to make some calls in my life when I had to cut casuals from my job, and i was given a list and could only save less than half and its never an easy decision especially when they are all good. Thats life.
THESE THINGS HAPPEN WITH OR WITHOUT MERGERS
In Bethesda case, they weren't in the best way before MS brought them. Infact, 2015 companies like Tango were in a lot of trouble finically. The merger isn't to blame for closures, the mergers normally give companies second chances and unfortunately for a studio like Tango, Games like HiFi Rush just didn't sell well across XB, PC and PS. Steam Databanks were showing that HiFi only made $16m on PC, probably the largest userbase for that game. People will want to blame GP, lets not look past Forspoken from Square, a game that also had its Studio closed/merged with no GP service. Sales is the lifeblood of a video game. This is why companies focus more on GAAS and MTs, because companies need income to fund future projects. Thats why Fallout 76, GTA Online, Sea of thieves, Grounded, Elder Scrolls Online, Final Fantasy Online etc all exist. They keep the heart pumping for these companies, even if some players don't like them.
WHERE TO FROM HERE?
It's a difficult time for these companies, Capitalism mixed with Inflation is a horrible combination. However, the industry will always exist, companies will continue to fold while new companies will continue to rise. Also for the companies that have recently closed, not all staff lose their jobs, some internally get transferred, while the IPs are not lost, they still exist. We still might get a Evil Within 3 or a HiFi Rush 2. It's not the end.
Enjoy the games and support your favorite studios.
UPDATED
Wanted to add this little article for those that aren't in the loop. The truth behind Tango Games closure.
Last edited by Azzanation - on 13 May 2024
