Microsoft Shuts Down XBox Entertainment Studio

[PEB]

Much to the surprise of studio heads, programming managers and Steven Spielberg. Microsoft's new CEO lying out a plan that calls for at first laying off 200 people in the XBox end of the business. It could be likely more as a part of Microsoft's plan to layoff a historic 18,000 employees. A lot of divisions are not safe from this massive restructuring going on at Microsoft.

Many programs already in the pipeline and done will be released but future projects have been stopped all together. Microsoft new CEO's has moved to bring more corporate responsibility and focus on Microsoft bread and butter products. Microsoft's new CEO Satya Nadella is changing the direction of the company to a more conservative business plan. Its more to focus on new products to compete better with Google and Apple as well as business applications.

Nadella talked about XBox but wants it to focus on game programming and Kinect is to be focus more on business applications. To that end Kinect is being sold to businesses such as medical, robotics and manufacturing less on gaming applications and entertainment. Nadella indicated he has not seen enough evidence to invest substantial sums of money on interactive media functions.

He wants to get more effort on tablet applications and work with others to bring applications to Windows tablets. Recently announced plans by IBM to bring enterprise applications to Apple has Microsoft concerned to say the least. Nadella is moving much like other new CEO's to reshape a business to their vision. It's the first time I am concerned about XBoxes future at least not much shall change at first but the long term seems radical.

http://www.cnet.com/news/microsoft-to-shut-down-xbox-entertainment-studios/

 

[bandicoot]

I.e. errybody tired of Microsoft

 

[76Knockout]

Sad to those who lost their jobs but good news as an Xbox One owner. More focus on gaming rather than entertainment is a good thing.

 

[PEB]

Sad to those who lost their jobs but good news as an Xbox One owner. More focus on gaming rather than entertainment is a good thing.

That's what I get out of it at least at first. Under Ballmer he did not talk much about the XBox devision and seem to take a more long ball game with the business. The new CEO has been in his last few presentations talking about where XBox fits in Microsoft's plans. That could be a good thing or a bad thing who knows? It does seem like the new CEO wants greater accountability from the business end of Xbox in terms of revenue and cash outlays for development.

He seems like he is more of a bean counter then Ballmer where Ballmer was more open to experiment. I also believe from a hardware side he would have not made Kinect integrated that way with the console. He seems more of the idea of cost control but would have released the product at 399 VS 499 as was done at first.

 

[Slick_36]

Sounds like they're actually getting their shit together. The layoffs are a bummer, but they're getting their priorities straightened out finally.

 

[HSMike2]

so they build their new console around entertain and then do a complete 180 lol

 

[GearSolidMetal]

So.... the Halo TV series is dead?

 

[milliniar]

So.... the Halo TV series is dead?

nope halo, quantum break and one other thing is still alive. slips my mind atm

 

[Fijeeto]

So.... the Halo TV series is dead?

No.

"Many programs already in the pipeline and done will be released"

 

[Madmick]

Xbox wasn't the division that was that heavily affected. They have a ton of employees. They were just trimming fat, there. This announcement isn't a big deal to gamers. It won't affect the Xbox division significantly.

I was going to add this to the smartphone thread last night, then got derailed IRL. 14,000 of these 18,000 jobs cut were from the smartphone and tablet division. Now that IS massive. It's so massive, in fact, that it almost appears to me that Microsoft is throwing in the towel on the mobile platform.

Their quarterly growth in control of market share has been great, but the actual share itself is tiny. I don't think they were generating enough gross revenue to justify an absolute labor force of that magnitude. So their new strategy is probably to continue this growth with a much, much smaller labor force: they're probably throwing around words like "streamlined" and "sleek" up there in Seattle.

Sorry, though this strategy may gross more revenue per employee and therefore be more profitable, it's less sustainable for increasing foothold and emerging as a viable competitor in the brutally dog-eat-dog world of smartphones and tablets: the most competitive industry in technology by miles, right now. It's tantamount to throwing in the towel in terms of vying for a place as one of the OS platform leaders in the industry. Probably the right move for them to focus on their hub OS, but I dunno...EVERYTHING is going mobile. Pretty soon it will be standard that you won't even need a PC/laptop to maintain your Wireless Router. Support for WiFi routers will be built-in because the CPU's capable of running them are so cheap now, so they'll just bake the software in, and the phones/tablets will be capable of interfacing with this and calibrating it like a PC does now. We're already seeing these low-end CPUs in external storage that basically add server functionality maintained completely separate from the PC itself (i.e. NAS boxes).

It feels like we're down to Android vs. Apple. It's the 90's and 00's all over again: PC vs. Mac. Android is the open-platform and more economical platform dominating total units sold. iOS is, well, Mac: the closed-platform premium niche market catering to a ardent subculture and wealthier users who prefer simplicity/stability in their tech.

 

[PEB]

Xbox wasn't the division that was that heavily affected. They have a ton of employees. They were just trimming fat, there. This announcement isn't a big deal to gamers. It won't affect the Xbox division significantly.

I was going to add this to the smartphone thread last night, then got derailed IRL. 14,000 of these 18,000 jobs cut were from the smartphone and tablet division. Now that IS massive. It's so massive, in fact, that it almost appears to me that Microsoft is throwing in the towel on the mobile platform.

Their quarterly growth in control of market share has been great, but the actual share itself is tiny. I don't think they were generating enough gross revenue to justify an absolute labor force of that magnitude. So their new strategy is probably to continue this growth with a much, much smaller labor force: they're probably throwing around words like "streamlined" and "sleek" up there in Seattle.

Sorry, though this strategy may gross more revenue per employee and therefore be more profitable, it's less sustainable for increasing foothold and emerging as a viable competitor in the brutally dog-eat-dog world of smartphones and tablets: the most competitive industry in technology by miles, right now. It's tantamount to throwing in the towel in terms of vying for a place as one of the OS platform leaders in the industry. Probably the right move for them to focus on their hub OS, but I dunno...EVERYTHING is going mobile. Pretty soon it will be standard that you won't even need a PC/laptop to maintain your Wireless Router. Support for WiFi routers will be built-in because the CPU's capable of running them are so cheap now, so they'll just bake the software in, and the phones/tablets will be capable of interfacing with this and calibrating it like a PC does now. We're already seeing these low-end CPUs in external storage that basically add server functionality maintained completely separate from the PC itself (i.e. NAS boxes).

It feels like we're down to Android vs. Apple. It's the 90's and 00's all over again: PC vs. Mac. Android is the open-platform and more economical platform dominating total units sold. iOS is, well, Mac: the closed-platform premium niche market catering to a ardent subculture and wealthier users who prefer simplicity/stability in their tech.

I was going to point that out that Tablet and phone are getting a major shake up.

 

[sportkillergreg]

you think people want Xbox? Microsoft has been trying to sell people on the xbox for years and it hasn't worked one time. People don't want Xbox, they want graphics, exclusiveness and security in knowing that their console will actually work. They need to be saved from red rings of death, in both single player and multiplayer. And that's where PS4 comes in...

 

[Wariowokecancel]

Xbox wasn't the division that was that heavily affected. They have a ton of employees. They were just trimming fat, there. This announcement isn't a big deal to gamers. It won't affect the Xbox division significantly.

I was going to add this to the smartphone thread last night, then got derailed IRL. 14,000 of these 18,000 jobs cut were from the smartphone and tablet division. Now that IS massive. It's so massive, in fact, that it almost appears to me that Microsoft is throwing in the towel on the mobile platform.

Nope, they're mostly ex-Nokia employees that Microsoft is booting out. 14000 out of 32000 acquired then. Duplicated functions.

 

[PEB]

you think people want Xbox? Microsoft has been trying to sell people on the xbox for years and it hasn't worked one time. People don't want Xbox, they want graphics, exclusiveness and security in knowing that their console will actually work. They need to be saved from red rings of death, in both single player and multiplayer. And that's where PS4 comes in...

Tons of people are buying XBOX not me but that's because I am exclusive to PC for now. XBOX has a huge following and they seem to be still selling well and now at the new price that is helping them sell more units. The new management at the top is resolving the issues with XBOX like trying to do to many things and bringing focus to the brand.

 

[Gregolian]

I live near Seattle and am down there AT LEAST once a week and have many friends working for MS. These layoffs aren't... "permanent" perse from what they say. Basically it is vendors, third party contractors, and such are being told they'll only be kept on "payroll" so to speak for 18 months. It's related to the healthcare stuff and crap I think.

 

[thomnasty]

you think people want Xbox? Microsoft has been trying to sell people on the xbox for years and it hasn't worked one time. People don't want Xbox, they want graphics, exclusiveness and security in knowing that their console will actually work. They need to be saved from red rings of death, in both single player and multiplayer. And that's where PS4 comes in...

we get it. you're a playstation guy and you're awesome.



as for the news, hopefully this means better things for the xbox. sucks to see those employees get laid off though, especially if they did a good job.

 

[Saint Connor]

Dat click bait title doe...

 

[SamboPunch]

Sad to those who lost their jobs but good news as an Xbox One owner. More focus on gaming rather than entertainment is a good thing.

Not exactly.... I don't know much about the Xbox One but I do know it was a very media centered console. Removing the Entertainment Studio which focuses on the very thing the Xbox One was designed for is kind of bad.

If anything they SHOULD be focusing on what they set out to do. Now they're stuck with a weak system to work on gaming with? Doesn't even make sense. I don't get these guys sometimes but I do know the underlying reason for every single thing they do.....

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Their idea failed me thinks and now they're doing damage control.

 

[SamboPunch]

Xbox wasn't the division that was that heavily affected. They have a ton of employees. They were just trimming fat, there. This announcement isn't a big deal to gamers. It won't affect the Xbox division significantly.

I was going to add this to the smartphone thread last night, then got derailed IRL. 14,000 of these 18,000 jobs cut were from the smartphone and tablet division. Now that IS massive. It's so massive, in fact, that it almost appears to me that Microsoft is throwing in the towel on the mobile platform.

Their quarterly growth in control of market share has been great, but the actual share itself is tiny. I don't think they were generating enough gross revenue to justify an absolute labor force of that magnitude. So their new strategy is probably to continue this growth with a much, much smaller labor force: they're probably throwing around words like "streamlined" and "sleek" up there in Seattle.

Sorry, though this strategy may gross more revenue per employee and therefore be more profitable, it's less sustainable for increasing foothold and emerging as a viable competitor in the brutally dog-eat-dog world of smartphones and tablets: the most competitive industry in technology by miles, right now. It's tantamount to throwing in the towel in terms of vying for a place as one of the OS platform leaders in the industry. Probably the right move for them to focus on their hub OS, but I dunno...EVERYTHING is going mobile. Pretty soon it will be standard that you won't even need a PC/laptop to maintain your Wireless Router. Support for WiFi routers will be built-in because the CPU's capable of running them are so cheap now, so they'll just bake the software in, and the phones/tablets will be capable of interfacing with this and calibrating it like a PC does now. We're already seeing these low-end CPUs in external storage that basically add server functionality maintained completely separate from the PC itself (i.e. NAS boxes).

It feels like we're down to Android vs. Apple. It's the 90's and 00's all over again: PC vs. Mac. Android is the open-platform and more economical platform dominating total units sold. iOS is, well, Mac: the closed-platform premium niche market catering to a ardent subculture and wealthier users who prefer simplicity/stability in their tech.

Your posts are always too well informed. If you don't cheat at all, you got a damn good head on your shoulders man.

Wish I could remember all that shit and relay it back that clearly. You in the industry at all?

edit: You just taught me what a NAS HDD is. Was always wondering what they did because they constantly go on sale.

 

[RJ43]

you think people want Xbox? Microsoft has been trying to sell people on the xbox for years and it hasn't worked one time. People don't want Xbox, they want graphics, exclusiveness and security in knowing that their console will actually work. They need to be saved from red rings of death, in both single player and multiplayer. And that's where PS4 comes in...

WOT?

Xbox did a tremendous job building brand loyalty with the 360. Hell the only reason the One is even remotely in this fight is because of the loyalty they created with the 360.