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MMO Business Roundup: Xbox’s resolutions, Microsoft’s employee buyouts, and Meta’s mass layoffs
This industry roundup covers several key business developments, including Xbox's strategic resolutions to expand its reach and Microsoft's offering of voluntary buyouts to a portion of its US workforce. Additionally, Behaviour Interactive has conducted layoffs affecting external development partnerships, and Meta has laid off 8,000 employees while closing 6,000 job postings.
"I want to make the right decision, not the fastest decision" - Xbox's new boss Asha Sharma refuses to rule out the return of exclusive games
Xbox CEO Asha Sharma stated that the company will take a data-driven and strategic approach to decisions regarding game exclusivity, emphasizing the importance of making the right choice over the fastest one. This comes as Xbox reevaluates its exclusivity policies, with Sharma also discussing the fortification of Game Pass and the potential for more affordable hardware and services.
Microsoft CEO sees Xbox as "critical audience and category" that's "really important to the company’s future" says Asha Sharma
Xbox CEO Asha Sharma views Microsoft CEO Satya Nadella's ten-year vision as placing Xbox as a critical audience and category for the company's future. Sharma and Chief Content Officer Matt Booty aim to return Xbox to growth next year by focusing on daily active players and making services like Game Pass more affordable and flexible.
Microsoft Gaming reverts to Xbox branding
Microsoft Gaming is reverting to the Xbox brand under new leadership, with CEO Asha Sharma and CCO Matt Booty announcing the change to employees. The company aims to focus on daily active players across hardware, content, experiences, and services, while re-evaluating exclusivity and AI approaches. This shift follows recent price reductions for Game Pass subscriptions.
Xbox CEO Will Take “Data and Strategic Driven” Approach to Exclusivity, Won’t Commit to Time Frame
Xbox CEO Asha Sharma stated that the company will adopt a data-driven and strategic approach to decisions regarding game exclusivity, emphasizing that the right decision is more important than a fast one. While no specific timeframe for announcements was given, Sharma indicated that more information will be shared when ready. The company is also focusing on improving the Xbox Series X/S platform experience and has adjusted its Game Pass offerings.
PS5 Games on PC Don’t Hurt PlayStation Sales, Finance More Projects, Says Shuhei Yoshida
Former Sony Interactive Entertainment executive Shuhei Yoshida believes that releasing PlayStation games on PC after their console launch does not harm PlayStation sales and helps fund new projects. He stated that the idea that PC ports devalue the PlayStation brand is a concern of a vocal minority. Yoshida also shared details about his departure from his role as president of Worldwide Studios due to disagreements with former CEO Jim Ryan.
'Our presence on PC isn't strong enough,' Xbox bosses admit
Microsoft Gaming CEO Asha Sharma and chief content officer Matt Booty have outlined a renewed commitment to Xbox, including a name change back to Xbox and a reevaluation of exclusivity, windowing, and AI strategies. The company aims to focus on daily active players and shared experiences, acknowledging past shortcomings in PC presence and console market share.
Xbox Will 'Reevaluate' Its Game Exclusivity, Throwing Potential Doubt Over PS5 Ports
Xbox head Asha Sharma has confirmed that Microsoft will reevaluate its approach to video game exclusivity. This internal debate follows a trend of Xbox and PC titles releasing on PlayStation 5 and Nintendo Switch. While previously announced multiplatform releases are unlikely to be affected, future unannounced ports could be impacted by this strategic shift.
Xbox CEO Asha Sharma and executive vice president Matt Booty publish staff memo ‘We Are Xbox’
Xbox CEO Asha Sharma and executive vice president Matt Booty published a staff memo titled 'We Are Xbox'. The memo likely outlines the company's current strategy and future direction for the gaming division.
We Are Xbox
Xbox is undergoing a significant strategic shift, aiming to become a global platform for players and creators across console, PC, and mobile devices. The company acknowledges current player frustrations with infrequent feature drops and fragmented core experiences, and plans to focus on hardware, content, experience, and services to drive daily active players. This includes re-evaluating approaches to exclusivity and AI, and a renewed focus on the Xbox brand identity.
New Gran Turismo 7 update is the live service success Sony keeps ignoring
Gran Turismo 7 is presented as a successful live service model for Sony, despite not being officially branded as such. The game continues to receive frequent updates with new cars and events, contributing to significant sales figures on PlayStation 5 and PlayStation 4, and generating revenue through microtransactions. This success is contrasted with Sony's broader struggles in launching its own live service titles, suggesting a need for the company to learn from its existing successful games rather than forcing the model onto other franchises.
Valve’s New Hardware Finance Job Hints at Steam Deck Empire Expansion
Valve has posted a job opening for a Hardware Finance & Accounting Professional, suggesting a significant expansion of its hardware ambitions beyond the successful Steam Deck. This move indicates a long-term strategy for scaling hardware production, potentially leading to new product lines like a successor to the Steam Deck or other devices. The hire signals Valve's intent to solidify its position as a major hardware player in the evolving gaming market.
Xbox Game Pass Could Lose Other Day-One New Releases Beyond Call Of Duty, Expert Says
Microsoft has announced changes to Xbox Game Pass, including a price reduction and the removal of new Call of Duty titles from day-one releases. Analyst Piers Harding-Rolls suggests that other first-party games might also be "windowed" from day-one launches to generate more revenue. Future plans for Game Pass aim for increased flexibility, potentially including customizable subscription tiers.
Imagine that, players who went to the Epic Game Store just for free games didn’t stick around
Former Epic Games employees revealed that while free game promotions on the Epic Games Store attracted new users, these players did not remain active on the platform long-term. This strategy has not helped Epic Games compete with Steam, which continues to see record user numbers and profitability.
Shoe company pivots to AI compute in sign of a totally normal and healthy economy
The shoe company Allbirds is undergoing a significant business pivot, aiming to transition into an AI compute infrastructure provider and GPU-as-a-Service company under the proposed new name NewBird AI. This strategic shift, pending shareholder approval, involves raising $50 million for acquiring graphics processing units and related high-performance computing assets. The announcement has led to a substantial increase in the company's stock value, despite a lack of prior experience in the AI sector.
Xbox Is Reportedly Having "Very Big Discussions" About Exclusivity
Microsoft is reportedly engaged in significant internal discussions regarding the exclusivity of its Xbox titles. While the company has recently expanded its reach by bringing games like Forza Horizon to PlayStation, there is ongoing debate about whether to prioritize being an ecosystem or a publishing company. This could potentially lead to certain single-player games being locked to the Xbox platform in the future, though major franchises like Call of Duty are unlikely to become exclusive.
How China came to dominate mobile games – and how Western companies can compete | Opinion
Chinese companies have achieved global dominance in mobile games through strategic advantages like early adoption of free-to-play models, intense domestic market competition, and sophisticated live-ops. Western companies struggle to compete due to differences in organizational scale, talent acquisition, and cultural integration. The article suggests Western firms must focus on talent density and unique creative vision rather than scale to succeed.
Bloober CEO says relying on one title creates 'too much risk' in today's market
Bloober Team CEO Piotr Babieno emphasizes the importance of operating with at least two concurrent major projects to mitigate risk in the current market. The studio is focusing on sustainable development, talent retention, and a balanced approach to production, currently working on original IPs, franchise expansions, and co-development titles.
Rumour: Xbox Debating Whether to Make Its Games Exclusive Again
Microsoft is reportedly debating whether to revert to making its games exclusive to Xbox consoles and PC. This internal discussion comes as the company evaluates its brand strategy and the potential launch of 'Project Helix'. While releasing games on PlayStation and Nintendo Switch has increased revenue, executives are considering the impact of exclusivity on their own platform's appeal.
New Xbox CEO reportedly admits Game Pass "has become too expensive for players" in leaked memo
New Xbox CEO Asha Sharma has reportedly acknowledged in a leaked memo that the Game Pass subscription service has become too expensive for players. Sharma indicated that Microsoft needs to develop a better value proposition and that the service will evolve into a more flexible system over time. The memo also suggested that the inclusion of Call of Duty titles was a factor in recent price increases.
