Welcome back Xbox fans, geeks, and other gamers!
It has been more than a week since Microsoft announced its latest round of layoffs affecting not only thousands of employees but also Team Xbox, its game studios and certain game projects as well.
To be clear, this is not the first time Microsoft had layoffs this year but it is much more significant because the latest layoff round hit Xbox really hard and already Xbox fans and gamers saw their excitement about future video games drop. It is important to keep in mind that Microsoft and its Xbox division are both profitable which makes the new round of layoffs baffling to some. So far this year, over 15,000 employees were laid of by the technology giant. With the layoffs affecting Xbox’s developers and projects, there are matters that concerned both the Xbox fans and gamers who could have joined in.
Firstly, the Xbox game studio The Initiative will be closing down and their high-profile game Perfect Dark (which involved Crystal Dynamics) has officially been cancelled. This is tragic because Team Xbox had the opportunity to reboot the decades-old Perfect Dark franchise, delight the long-time PD fans while offering other gamers something new and exciting to play. A lot of gamers have been anticipating Perfect Dark for many years now only to end up frustrated.
Secondly, the successful and reliable Xbox game studio Turn 10 saw several of its employees laid off and their team will reportedly work as a supporter for Playground Games. For the newcomers reading this, Turn 10 created and built up the Forza Motorsport franchise of simulation racing games that started in 2005. To see Turn 10 get demoted and work on support duty for Playground Games on the Forza Horizon franchise is just very odd and baffling. Could this mean that Forza Motorsport (2023) is the last game of its franchise? Do you think a leaner Turn 10 will still be able to make another Forza Motorsport game?
Thirdly, the much-delayed Xbox game Everwild got cancelled and its developer also suffered from the Microsoft layoffs. This unfortunate development only added to the perception that developer Rare (the team behind many hit games it made with Nintendo decades ago) kept going downhill creatively, critically and commercially. Considering how long the game development lasted, I can only imagine that many millions of Dollars were spent on Everwild and Microsoft decided to pull the plug.
Fourthly and most notably, Xbox head Phil Spencer’s official email (addressed to employees) related with the huge layoffs was revealed and its content has been posted below for you to see. Some parts in boldface…
Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.
I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.
HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.
This is my opinion about Spencer’s message…as head of Xbox, Spencer is really powerless and he has no choice but to follow orders from Microsoft’s top management whose views about video game culture and interests do not really match with what we gamers and the game makers have. For Microsoft’s leadership, they have a business to run but it is clear that gaming (electronic entertainment) won’t be going away soon and they will keep investing more money in video game projects. Of course, Microsoft expects healthy returns on its investments which is why they will keep the Game Pass subscription service moving, offer games to varied users (console, computer, mobile and cloud) and they will push through with the next-generation Xbox with AMD as a bigger strategic partner.
Regarding layoffs reaching thousands, it is depressing on face value because those who lost their jobs will have to deal with the high costs of living in first world economies like the United States and in parts of Europe. However, I see an opportunity that others cannot see…the opportunity for Team Xbox to get rid of their least-productive employees as well as laying off the woke activists scattered among the employees of the many Xbox game studios. As seen in entertainment over the past several years, woke activists working in movies, video games, comic books and TV shows do not prioritize quality, do not care about the fans, and they keep on abusing the company resources as they prioritized their Leftist agenda. Is it any wonder why modern entertainment sucks? Did you notice the use of pronouns in Xbox games?
To be fair, Microsoft and Team Xbox both have been woke for years already. In America, the tone of society has changed drastically ever since Donald Trump successfully returned as United States President. Perhaps Microsoft and Xbox executives realized that they should get rid of DEI (diversity, equity and inclusion) from their business practices and corporate culture before the wave of change under Trump’s America leaves them behind. As of this writing, Trump is making America great again and the woke know they are losing the culture war.
I can only speculate that as Xbox game studios each have less employees to work with, there could be a renewed effort to focus more on making high-quality video games that are both enjoyable to play and worth the money of customers. The Outer Worlds 2, which will be released this October, has an eye-catching American price of $79.99 (regular edition) and already a lot of gamers – including The Outer Worlds fans – find the price excessive.
The way things are right now, the future of Xbox looks gloomy and the excitement of the Xbox fans and other gamers have weakened. That being said, we can only wait and see what will happen next in the near future. Perhaps a month from now, Team Xbox will clarify what direction they are headed to and what exciting projects or events fans can still look forward to.
How do you gamers feel about Xbox gaming right now? If you are an Xbox fan, are you feeling disappointed with the cancellation of Perfect Dark and Everwild? Do you think it is time for Team Xbox’s leadership to be changed now that Microsoft impacted the gaming projects and work forces?
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