Shaunodon said:
'Profitable' doesn't always mean 'successful'. If Microsoft believes those resources have a higher potential return in another division while the growth in Xbox has stagnated, why do you think they wouldn't cut their losses? Critisicism about Xbox leadership isn't down to just one or two guys, the whole division has been clearly lacking a single person that actually undestands the current landscape. They've needed a complete cleanout for a long time now, but you always speak under the impression if they just get rid of a couple key guys, everything will suddenly smooth out again. The only thing current Xbox leadership knows how to do is spend money and sell lies. It's been that way for two generations. Getting rid of Don for Phil didn't change that, getting rid of Phil for Sarah won't change that. You keep talking with the short-sighted mentality that a fresh face will make a difference, what they need(ed) is an actual clue of what they're trying to sell. |
Microsoft has done that to every division though, AI currently has the higher potential return in their minds and so they've made layoffs in every department, it doesn't mean they're all unsuccessful, it just means they want more money and AI is the current trend. Last year they laid off 1,500 employees from their Azure division and Azure is one of their most successful units, Lol.
Growth in Microsoft Gaming hasn't stagnated, we can see that from the recent fiscal quarters, the only thing declining is Hardware but everything else is up, sometimes even beating their projections, they've singled out Microsoft Gaming multiple times in recent quarters as being the reason for growth in profits in their overall "More Personal Computing" division which includes Windows and Devices, Windows OEM licensing, Surface, PC Accessories, HoloLens, Gaming, Search and News Advertising, etc. If Microsoft Gaming is the reason for profit growth in that area then it is not stagnating.
Also we can see from NPD's recent reports that Subscription Spending has been notably increasing every single month since CoDs inclusion into Game Pass, before that Subscription Spending had stagnated, now obviously this includes other Sub services but I think it's pretty damn safe to say that a decent chunk of it is due to Game Pass spending growth.
They're also starting their porting initiative which will result in a lot of growth, they've dominated this quarter via software as per NPD and it's almost guaranteed they're about to show a record quarter and this is without including the layoffs because the layoffs won't be calculated in Q4 as they happened at the start of the Fiscal Year therefore they will only show up in Q1.
I don't agree that every single person in the entire Gaming division is to blame and lack vision, I don't agree with firing every single executive position inside of Microsoft Gaming, a complete cleanout would just result in Satya shutting down the division, ain't no chance anyone will do that. Plenty of brilliant Xbox studios guys who could step up to the plate too, I've been an advocate of Feargus Urquhart taking over Matt Booty's position. But again, Microsoft Gaming is far from failing.
If anything, Satya will probably keep Phil and Matt around because they're yes men, he tells them to fire people to pump up the stock and save some money for AI and Phil/Matt say "How much?" without any struggle, anyone who did refuse to follow the orders of their CEO would probably end up fired anyway, and they'll likely be mass layoffs under any MS CEO because Satya is a cutthroat CEO who has been doing mass layoffs for years now.







