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Forums - Microsoft Discussion - Microsoft has closed down multiple Bethesda studios, including: Tango, Arkane Austin, etc

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trunkswd said:
EpicRandy said:

The context is cut-throat. Looking at the leaks of financial assessment with Spider man 2 last year you can see why that is. The title was anticipated only to start generating profits after the 10m marks. 

This is due to 2 main reasons:

1) The market has barely expanded in the last 15 years.

2) The budget of making video game more than doubled in the same time fame.

This directly cut into ROI and especially since profits from those sales are also used to support the subsidised model of console Hardware. The breathing room have grown extremely thin and created a cut-throat environment.

Covid made everyone think the above number 1 issue would be solve by driving growth in the industry and this have driven many investment, but it did not last not only resulting in entity scrambling to secure there previous investment but also forcing them to acknowledge the current reality of the market.

The industry is adjusting itself to this reality and it's not pretty.

Sadly I expect the layoffs to continue in the gaming industry through the rest of the year and likely into 2025. The industry needs the switch 2 ASAP. Its power should be around the PS4 or a little above it, which makes it easier to port AAA games to it. That gives another platform for those games to sell on.

Agree, i hope the industry will find it's feet quick but it won't happen tomorrow for sure.

Nintendo and their switch / switch 2 are an interesting case, Nintendo is more resilient to the current context and 1 reason is because they don't use a subsidised model to begin while their title's budget are better kept under control.

My guess for the future is, the ps5 pro / next Xbox hardware will not use a subsidised model.



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EpicRandy said:
trunkswd said:

Sadly I expect the layoffs to continue in the gaming industry through the rest of the year and likely into 2025. The industry needs the switch 2 ASAP. Its power should be around the PS4 or a little above it, which makes it easier to port AAA games to it. That gives another platform for those games to sell on.

Agree, i hope the industry will find it's feet quick but it won't happen tomorrow for sure.

Nintendo and their switch / switch 2 are an interesting case, Nintendo is more resilient to the current context and 1 reason is because they don't use a subsidised model to begin while their title's budget are better kept under control.

My guess for the future is, the ps5 pro / next Xbox hardware will not use a subsidised model.

Yeah the only Nintendo games I see costing $100 million or more to develop are the latest mainline Zelda games and 3D Mario. I wish I could say Pokémon, but given all the issues with Scarlet/Violet that is very unlikely. 

As for the subsidized model, the big issue this gen is that the cost to develop them has not really gone down like in previous generations. I could maybe see them subsidizing a bit next-generation, but nowhere near to the level of this generation. Ie. Instead of losing $100 or more per console sold, it is $50 or less. So the sale of 1 or 2 games or a year subscription to PS Plus or Game Pass would be enough to turn that into a profit.

At this point I've personally moved to gaming on my PC, other than with Nintendo. I'll likely get the Switch 2 once the next 3D Mario launches.



VGChartz Sales Analyst and Writer - William D'Angelo - I stream on Twitch and have my own YouTubeFollow me on Twitter @TrunksWD.

Writer of the Sales Comparison | Weekly Hardware Breakdown Top 10 | Weekly Sales Analysis | Marketshare Features, as well as daily news on the Video Game Industry.

Shikamo said:
Chrkeller said:

Arkane, Deathloop? Flicking loved that game.

Deathloop was made by Arkane Lyon

Sounds like a different studio.  Good to hear.  I did think DL was borderline perfect.



What conclusions can we draw from these events. If only there was a way to know.



World's richest Company that Spent nealry 90 billion on acquisitions can't afford to have four AA studios running. Pathetic







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Today Microsoft lost me as a customer.



Legend11 correctly predicted that GTA IV will outsell Super Smash Bros. Brawl. I was wrong.

Thinking on it but one of the reasons they cited for the existence of Gamepass back then, was that AA and smaller games were supposed to proliferate on that service because it was a safer financial bet for them to be placed on that service.

But they obviously weren't the games to drive the sales of Gamepass in itself, therefore with the stagnation of Gamepass it seems, like they've decided these smaller endeavors are too costly.

Sooooo, Gamepass is losing one of it's far argument and the service will suffer because of it.



Switch Friend Code : 3905-6122-2909 

Since last year my excitement for the industry is just dread and I feel like not just with Xbox but all big publishers. I'm watching the industry die. It was so hard to see SEGA kill the Dreamcast and go third party but there was still new hardware and a lot of great stuff to be excited about. This just makes me more and more want to become a retro-exclusive game. I liked playing both modern and retro. But I don't know how much longer I can tolerate seeing this industry put so many people out of work over such bullshit.



Bite my shiny metal cockpit!

It just goes to show why you shouldn't take executives' words at face value. It wasn't long ago Aaron Greenberg over at Xbox was claiming Hi-fi rush was a "break-out hit" Clearly that wasn't true since you've shut the studio down. Seems MS has been taking the axe to Bethesda and Activision, wonder if it'll continue.



An absolute disgrace, though nothing new or unexpected in the current climate in the industry. It's just remarkably shortsighted as always, as the video game industry keeps putting some of its most talented people out of work and out of the industry in general. It's just companies staring at the next quarter earnings, rather than considering what exactly is going to drive the companies' revenue over the next five years, let alone ten. Every time these massive layoffs happen, huge sections of those people will leave video games for good, and every time that happens we lose a ridiculous amount of experience and talent that gets more and more difficult to replace with each passing year.

Most of these massive companies are continually announcing record revenues and profits, yet none of that is ever enough, as the whole system we currently have in place is predicated on the idea that there must always be growth, next year's profits must always be higher than the last. It's unsustainable, and much of these layoffs are just a way to push the inevitable a little further back, to squeeze that little bit more money out of the industry and hide just how shaky the foundation for a lot of these companies has become.