After Buying Up Studios, Xbox Says It Doesn't Have The Resources To Run Them

2 years ago by alessandro to c/pcgaming

Apparently, Microsoft's top leaders are paying closer attention to Xbox and its plans, too
AlternatePersonMan 83 points 2 years ago

Last I read, Microsoft had $80 billion in cash on hand. I'm pretty sure they have the resources to run whatever the fuck they want.

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alessandro 30 points 2 years ago

I think the "Microsoft dilemma" is between Making Some Money vs. Take All The Money.

If they publish a bunch of successful games on Steam or on Playstation, they will make Some Money, compared to games published exclusive to Xbox, where they can make All The Money.

By acquiring studios they are making sure that good franchises "don't make all the money... yet" (on competing platform like Steam, Playstation or Switch, but also Android/iOS)

They could make good games exclusive for Xbox, but given how relatively unsuccessful is the Xbox platform, compared to Switch and Playstation, it would mean that very expensive (to make) games will bleed money

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DebatableRaccoon 23 points 2 years ago

So it's almost like the smart business decision would be to make some multiplatform games, huh

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OwlPaste 8 points 2 years ago

Get out of here! Microsoft doesn't need this! They needs the mooney? Please won't somebody think of Microsoft?!

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Statlerwaldorf 11 points 2 years ago

I think the "Microsoft dilemma" is just called capitalism. If you're not making all the money, you're losing the game.

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helenslunch 2 points 2 years ago
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lilja 54 points 2 years ago

I wonder if regulators will bring this up the next time Microsoft wants to buy another publisher. They fought tooth-and-nail to buy Activision Blizzard and like a child that got a new toy they're throwing out the old ones.

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Hypx 13 points 2 years ago

It's secretly benefiting the smaller game studios because Microsoft is basically giving up marketshare. The real question is whether MS wants to buy any more studios.

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lilja 9 points 2 years ago

With all the money they'll save from shutting down all the smaller studios they can just go out and buy more.

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sigmaklimgrindset 5 points 2 years ago

Benefits how? I feel like gaming is going to become like the startup sector where companies create something to specifically get acquired by a big company.

Like it's becoming so prevalent for these big gaming publishers to vacuum up IP and sit on it, it's just the Disney-fication of gaming.

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Justas 36 points 2 years ago

Well then, maybe they shouldn't have bought them to begin them?

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DosDude 18 points 2 years ago

I agree. But these days having an IP prints money. Especially an IP as popular as minecraft, fallout, elder scrolls, call of duty, warcraft, Diablo and doom.

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Justas 8 points 2 years ago

Yes, but it is also possible to buy the IP without buying the company.

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DosDude 9 points 2 years ago

But then you miss out on the residuals from the already released stuff

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ILikeBoobies 3 points 2 years ago

Cheaper though a bigger issue would be releasing competing games

Like Halo vs Destiny. Had they just folded Bungie they wouldn’t have to deal with it

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joshhsoj1902 33 points 2 years ago

Well of course not. These game studios were selling games at 60-80$ each. Microsoft bought them, then started providing the all the games for a flat fee of 15$ per month.

I assumed their strategy was to lose money in the medium term while they worked on getting people used to playing games on subscription. Where they make their money back is when they stop outright selling games at full price and make them only available on subscription, and then they slowly start increasing that monthly subscription cost.

In order for that to work they need a large library and like 5-10 years.

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BlemboTheThird 18 points 2 years ago

Turns out corporations can manage long term planning when the plan reduces quality of life for customers. Crazy!

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Zehzin 9 points 2 years ago

No joke, their plan was to have 100m subscribers so the economics start making sense

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dan1101 5 points 2 years ago

It's $9 for the standard Game Pass, and was $1 a month until they stopped that last year sometime.

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ladicius 22 points 2 years ago

And the studios didn't run themselves before the purchases?

Is Microsofts PR AI that bad at dumb excuses?

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kindenough 22 points 2 years ago

Yeah, they needed a shitload of money to pay Bobby Kotick apparently.

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scops 16 points 2 years ago

As a gamer who has owned every Xbox from the OG to a Xbox One S, I just don't understand Microsoft's strategy for this generation. Vanishingly few console exclusives, and most of those shipped on PC, too. As someone with a decent PC and enough income to buy 2-3 consoles per gen, they just haven't given me a reason to buy an Xbox Series console.

I know they hoped to sell Game Pass to PC only players, but without the lock-in of a console, there's just no incentive to buy it over a PS Plus subscription and individually buying the exclusives I want on PC.

Now they're burning bridges with players by closing down beloved developers, even if their last title was successful. I wonder what Ninja Theory devs are thinking with Hellblade 2 a couple weeks out.

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DebatableRaccoon 10 points 2 years ago

I bet they're currently shitting bricks

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tabris 2 points 2 years ago

Why? There's been so much marketing for Hellblade 2, Xbox have basically guaranteed their success! /s

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DoctorButts 9 points 2 years ago

Xbox President Matt Booty

Matt Booty

Booty

Lol

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alessandro 7 points 2 years ago path: 0 9966317, hotness: undefined, score: 7, children: 0
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