Xbox first party studios will cost $2.1 billion a year in staff costs alone

[Gediminas]

2.1 billion really means nothing to them. They just spent 70+billion. Have trillions.
And make billions from “other stuff”

and yet, they are cutting everything. with rising massively spending, they will cut even more.
at the end of the day, they cutted more for less. xbox days are numbered.

 

[SLB1904]

2.1 billion really means nothing to them. They just spent 70+billion. Have trillions.
And make billions from “other stuff”

Microsoft doesn't have trillions. You guys needs to understand there is a difference between market cap and actual money

 

[Bryank75]

Now I want to see how the third parties feel....

Now that Microsoft feels they probably have enough studios or nearly enough studios to be self-sustaining. They don't want to pay studios and publishers to have their games in Gamepass. Will they now regret supporting Gamepass and the acquisitions? I expect so.

 

[Kokoloko]

Microsoft doesn't have trillions. You guys needs to understand there is a difference between market cap and actual money

There still have way more money then 99% of tech companies out there. 2billion a year is nothing to them

 

[SLB1904]

There still have way more money then 99% of tech companies out there. 2billion a year is nothing to them

Yeah that's why there are thousands of job losses at Microsoft

 

[Swift_Star]

This will be terrible for management.

 

[PropellerEar]

Operating cost for Activision is roughly $1.5b for one quarter, the calculations in the OP make no sense.
That's ~6B per year, just for ABK.

Just wait a year and there will be reductions, specially on the marketing and publishing side.

 

[SLB1904]

Operating cost for Activision is roughly $1.5b for one quarter, the calculations in the OP make no sense.
That's ~6B per year, just for ABK.

Just wait a year and there will be reductions, specially on the marketing and publishing side.

They forget most of this money comes from playstation

 

[PropellerEar]

They forget most of this money comes from playstation

Mobile and PlayStation.

 

[nongkris]

nothing a 2 trillion dollar company can handle

2.1 billion really means nothing to them. They just spent 70+billion. Have trillions.
And make billions from “other stuff”

Microsoft does not have trillions of dollars in cash. That is their market cap, not revenue. While they can certainly afford 2.1 billion a year, I still expect to see layoffs upcoming. Heck google spends 10 billion+ a year just to have google as the default search engine in safari. Then again google search is a profitable division while Xbox is not currently.

 

[Old Gamer]

With AAA games development costing 100s of million per game, I shudder to think what MS will be spending per year on these gamepass giveaways.

You think they intend to produce even half as many games as Activision did when they were independent? You actually believe that this buyout had anything to do with first party output?

 

[Old Gamer]

Now I want to see how the third parties feel....

Now that Microsoft feels they probably have enough studios or nearly enough studios to be self-sustaining. They don't want to pay studios and publishers to have their games in Gamepass. Will they now regret supporting Gamepass and the acquisitions? I expect so.

Welfare "indies" will be the first to be dropped.

 

[Dr Bass]

Operating cost for Activision is roughly $1.5b for one quarter, the calculations in the OP make no sense.
That's ~6B per year, just for ABK.

Just wait a year and there will be reductions, specially on the marketing and publishing side.

This makes way more sense. People seemingly have no idea what it costs to run a business with skilled professionals.

 

[Kokoloko]

Yeah that's why there are thousands of job losses at Microsoft

Either way its not good news for us. They sack employees. Hire more, sack some more and then buy a publisher worth billions again. Which will probably happen again.

If they were worried about money, they wouldnt be staying in the video game industry probably losing money all these years. They are in to take over unfortunately and they just spent 70billion plus. And are willing to lose more by putting games on gamepass.

Im not saying they are smart or doing a good job. Just they are willing to lose alot of money to get what they think they want.
Personally I think gamepass wont grow much despite it all and in a 1-3 of years the board members will have had enough and something will change, maybe an exit from console gaming.

 

[Snes nes]

Disney of videogames - No quality but a lot of quantity

I recall a lot of people attributing that to Nintendo if I’m not mistaken. What changed I wonder

 

[SLB1904]

I recall a lot of people attributing that to Nintendo if I’m not mistaken. What changed I wonder

Well is not the old Disney anymore. I remember every stuff they put out was quality. Now is amc quality

 

[Killer_Sakoman]

They will cut redundancies. They don't need all the ITs, HRs and other functions that comes with these mergers.

 

[Swift_Star]

You think they intend to produce even half as many games as Activision did when they were independent? You actually believe that this buyout had anything to do with first party output?

Some people believe ms will bring back dead IPs lol

 

[shrike0fth0rns]

and yet, they are cutting everything. with rising massively spending, they will cut even more.
at the end of the day, they cutted more for less. xbox days are numbered.

Several of the senior execs just got a huge pay cut even satya and brad smith. Smith looks like like a fcking out their pushing for the abk acquisition and they cut his salary by 20% to reduce cost. What a dumbass. Microsoft doesn’t have bottomless pockets they will cut cost to maintain high revenue and profit even if it means taking a pound of flesh from top execs. If they are willing to reward satya snd smith with pay cuts devs and leadership at Xbox will definitely get bleed in the coming yr. Corporate are eventual themselves victims of unrestrained corporate greed.

 

[Gediminas]

Several of the senior execs just got a huge pay cut even satya and brad smith. Smith looks like like a fcking out their pushing for the abk acquisition and they cut his salary by 20% to reduce cost. What a dumbass. Microsoft doesn’t have bottomless pockets they will cut cost to maintain high revenue and profit even if it means taking a pound of flesh from top execs. If they are willing to reward satya snd smith with pay cuts devs and leadership at Xbox will definitely get bleed in the coming yr. Corporate are eventual themselves victims of unrestrained corporate greed.

Wait, they will cut xbox massively as what they bought isn't sustainable long term even for m$. They bled massive numbers from bethesda and they were way smaller yhan ABK.
Shareholders won't take long xbox liability.
They don't care about unions, developers, customers, just bottom line - prifits.