Microsoft laying off 76, cuts production of own Xbox games

[Astrakan]

Originally Posted by Brier Dudley at Seattle Times

In the latest adjustment to its Xbox business, Microsoft is closing its sports video-game studio in Redmond and laying off 76 employees.
The cut is the division's largest single layoff since Microsoft launched Xbox in 2001, but it has shed hundreds of games jobs over the past year.

A Microsoft spokeswoman said the company no longer has to make as many Xbox games itself, now that the console has support from the games industry.

"The business has grown and a vibrant ecosystem of third-party developers has emerged," said spokeswoman Molly O'Donnell. "These developers are filling the pipeline with an abundance of great games."

Microsoft's game-development group, which started out making games for PCs, grew from 350 employees to a peak of 1,200 after the Xbox was launched.

Changes were under way earlier this year and the group was down to 1,000, division chief Robbie Bach said in May.

"When we got to that point, we started looking around and started realizing, wait, we've got tons of third-party support," he said. "We shouldn't be the bulk game provider."

There were other hints about the sports game studio's future. Microsoft announced in March that it would not produce any new editions of its sports titles this fall. Then in May it formed a partnership with Electronic Arts under which the game company is producing about 15 Xbox titles.

Microsoft is also refining its Xbox business to make it profitable. Last month, executives told financial analysts that its entertainment business is on track to be profitable by the 2007 fiscal year.

The sports game studio being cut produced titles such as "NFL Fever," "NHL Rivals" and the "Inside Drive" baseball game.

O'Donnell said the 77 employees being laid off were notified verbally starting Wednesday. Their jobs end Oct. 25. Job specialists are helping them look for work elsewhere in the company.


A separate studio in Utah that produces the "Links" golf game and "Amped" snowboard game is unaffected by the cuts, she said

http://seattletimes.nwsource.com/htm...layoffs20.html

[Astrakan]

Obviously fewer games is never good news, but one thing in that article that caught my eye as something positive is the following:

Microsoft is also refining its Xbox business to make it profitable. Last month, executives told financial analysts that its entertainment business is on track to be profitable by the 2007 fiscal year.

To me this confirms that not only are Microsoft commited for the long haul (as we've all been saying) they are also seeing a light at the end of the tunnel. Good stuff if you ask me.

KM

[MooglePorn]

I have no doubts the big M will be in the console buisness a long time...

[Reaver]

Considering that NFL Fever was always crap, this is actually a smart move. Why have a sports division when there are third party devcos that already do it so much better? Why waste money on games that won't sell? Good call on their part. But, I'm glad that Amped will still be around.

[mtcarmel00]

This seems like a good move to me. Less is more can certainly be applied to video games. It's good to know that Microsoft is committed to the XBox because I'm sure I'll have one at some point.

[Sword of Whedon]

TopSpin is good though, it filled the VTennis void mostly (needs better minigames though)

Hopefully they'll pass it to their Utah division. I've been better for awhile that getting EA on board required MS to eliminate the big sports titles, looks like i'm right

[Ruined]

Looks like MS is keeping their eye on the ball, good read.

[Enzian]

Good god, that's smart business. Makes me want to bear Bill's baby.

If I could... nevermind.

[Engineer_J]

Originally Posted by Astrakan

Obviously fewer games is never good news, but one thing in that article that caught my eye as something positive is the following:



To me this confirms that not only are Microsoft commited for the long haul (as we've all been saying) they are also seeing a light at the end of the tunnel. Good stuff if you ask me.

KM

You got to love X-Box fans, MS layoffs off employee's, shuts down three developers games and you all call it a great thing, if Nintendo did that you all would be talking about the end of Nintendo.

BTW, what makes them think they will be profitable in 2007, losses have only keep at 800-1000 million a year and have not gone down at all, lets see some progress first, even if they are profitable in 2007 how long will it take MS to "make up" the 4 billion they have thrown away all ready?

Think it is funny how Nintendo was critized for not have sports and now MS has learned what Nitendo learned (while some of you jeer Nintendo for not having a sports lineup and some of you cheer the MS move) a long time ago, EA sport titles rule.

**Seriously the you, some of you, you all is not directed at anyone in particular, just making a point, not trying to start a flame war.

[Enzian]

Nintendo prides itself on it's first party games. It has a history of creating some of the most original and compelling games. Nintedo could be considered a game developer first, and a hardware developer second. Could.

Microsoft is new as a game developer, and are generally... unskilled. MS' sports titles, as you used as a point, sucked. (from what I've heard). Why on Buddah's green earth would MS continue to create these sports games now that hardware sales has interested real software developers? With ESPN lowering prices to $20 for 2K5, even the profit margins are smaller.

MS' largest concern has been for XBox saturation. They created a huge games division and even bought primo developer talent to get that mission accomplished. Now that saturation is achieved, why keep that effort up when 3rd parties (who are the real pros at this) do it better?

Don't get me wrong, either. I'm sad to see the competition die. Like I say, "The more games made, the better it is for the consumer." But, that doesn't preclude admiration for a strategic (as opposed to tactical) move. It's not often we, the public, can see fundamental strategy in motion, so this is cool. More often, we see in press releases a reactionary, quick response from a company.

So, I'm doubly impressed just to see the strategy. The fact that I doubt I'd be able to focus that well if I were in charge only heightens my admiration.

[Reaver]

Originally Posted by Engineer_J

**Seriously the you, some of you, you all is not directed at anyone in particular, just making a point, not trying to start a flame war.

* snerk*


* snort *

[decorm]

Originally Posted by Enzian

Microsoft is new as a game developer

Microsoft has been making games on the PC for years.

[Iguana Man]

Wow...76 people outta, uhhh, how many? Please..I saw my department loose 1/4th of our staff...I tend to think 76 in the MS world is a small # by far.

It does suck for those 76, but man, given this year and last years economy....I see this layoff as somewhat miniscule given the bigger picture of late.

[Enzian]

Originally Posted by decorm

Microsoft has been making games on the PC for years.

What with those wonderful hits like Deadly Tide and... shit, I can't even remember that other one I had. They both sucked eggs.

Yes. They've been around - but not for the XBox. And they've always been spotty at best. The best games in MS' arsenal are those from other developers they bought.