Ryuu96 on 09 May 2024
Analysing this from the perspective of the bean counters, they have some pretty convincing arguments and hard questions to answer for the Gaming division:
- ABK was the biggest acquisition in MS history and we made important sacrifices from an economical, legal and even reputational perspective during the review process. Why should we let you run it on your own terms as a division?
- Without ABK, the Gaming division would have single digit or negative growth. What have you been doing during the last 5-6 years?
- ABK was very successful and made a lot of money using a premium model focused on huge IPs. What happened to our own huge IPs and why haven't been able to create new ones?
- Bethesda has huge IPs that haven't received a new entry in years and will need 4-5 extra years to have a new game (Elder Scrolls or Fallout). What are you waiting for and why?
- Starfield was the only new IP in 2023 that entered the Top 10 of the most played games. Then, why are you wasting time and money on smaller, riskier and less profitable projects?
- Game Pass growth has stalled and it affects 20-25% of premium sales. Why should we sacrifice (part) of the huge IPs that we have recently acquired and that generate almost all your profits?
And a few more…
From the perspective of the ones focusing on numbers, many of the arguments make sense.
The issue is that these moves are colliding with a very different strategy that has been presented during years and that in the end has mainly failed from a hardware, software and even services perspective.
And now the shift on the strategy feels sudden and even brutal (with a very poor and insensitive execution), but the signs were likely there from years ago.
- ABK was the biggest acquisition in MS history and we made important sacrifices from an economical, legal and even reputational perspective during the review process. Why should we let you run it on your own terms as a division?
- Without ABK, the Gaming division would have single digit or negative growth. What have you been doing during the last 5-6 years?
- ABK was very successful and made a lot of money using a premium model focused on huge IPs. What happened to our own huge IPs and why haven't been able to create new ones?
- Bethesda has huge IPs that haven't received a new entry in years and will need 4-5 extra years to have a new game (Elder Scrolls or Fallout). What are you waiting for and why?
- Starfield was the only new IP in 2023 that entered the Top 10 of the most played games. Then, why are you wasting time and money on smaller, riskier and less profitable projects?
- Game Pass growth has stalled and it affects 20-25% of premium sales. Why should we sacrifice (part) of the huge IPs that we have recently acquired and that generate almost all your profits?
And a few more…
From the perspective of the ones focusing on numbers, many of the arguments make sense.
The issue is that these moves are colliding with a very different strategy that has been presented during years and that in the end has mainly failed from a hardware, software and even services perspective.
And now the shift on the strategy feels sudden and even brutal (with a very poor and insensitive execution), but the signs were likely there from years ago.
Essay Pro