Maybe instead of selling a fight stick, fight for the customers who've supported you for decades. Not the suits.
Trying to sweep the death of physical media under the rug is exactly the kind of PS3 era arrogance that made people turn on PlayStation.
Fuck this company man
I mean, the layoffs suck, but at least all of the studios get to live on.
It does make you wonder how many studios that were shut down in the past under Xbox and PlayStation alike could've been given the same chance.
I still grieve for Japan Studio.
This is an important email I sent today to all employees at XBOX:
Team,
We are beginning the most significant restructure in XBOX history. After careful consideration, I've made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management. I recognize that a year-long restructuring creates additional challenges. Unfortunately, it is not possible to make all the necessary changes in a single day, and I wanted to be direct about the scale.
I know this is painful. These changes will directly affect people who have poured their creativity into building XBOX. Many joined us through acquisitions, while others were recruited here, or sought us out because they loved this industry and loved XBOX. Today's decisions do not reflect their talent or dedication.
Our business today is not healthy. We are operating at margins that are 3–10x lower than comparable platform and publishing businesses. We entered Gen 9 with a smaller install base and a higher cost structure. To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. While those businesses have created meaningful value, they did not grow at the pace we expected. As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history. We must reset XBOX.
First, we will reset our content portfolio.
Since 2018, we have aggressively expanded our studio portfolio while the number of games created each month across the industry now outpaces the last ten years combined. We now find ourselves competing not only with the largest publishers, but also with smaller independent studios. It is neither possible nor desirable to own every great independent studio. We have also learned that we are not the best home for every type of studio; in a typical year, we lost 64 cents for every dollar we invested. As we reset XBOX, we will help independent creators succeed by providing open development tools and audiences to realize their vision.
Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games. Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.
We are also making reductions across other units, and in some cases, shifting investment to focus on higher priority projects. These changes vary in size across Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game Studios. None of our first party publicly announced games or projects are being cancelled as part of these reductions.
In addition, Mojang and King will now report directly to me. These two studios have increasingly become platforms and are our largest by monthly active players. They bring critical geographic, demographic, and differentiation to XBOX.
Second, we will reset our platform.
We know that great technology gets better when it gets simpler, not bigger. Today, in some parts of the company, work passes through as many as 14 layers of management. Our platform teams are 40% larger than they were at the start of this generation, even as our player base and playtime have declined. That complexity has slowed decisions, blurred accountability, and made it harder to deliver for players. As we reset XBOX, we will simplify.
We will reduce management layers to no more than 5, and where possible, 3. We will deliver success through a flatter organization that is built around makers (individual contributors focused on building), player-coaches (leaders who remain deeply involved in the work while developing their teams), and directly responsible individuals (DRIs) who own key decisions and outcomes. And we will streamline how we work across our tools, with a cleaner code base, shared services, and 50% reduced vendor spend.
Third, we are resetting how we operate.
As XBOX grew our headcount, we became more fragmented. Teams, studios, and functions often operate independently, and it became harder to work towards a shared goal, make the right tradeoffs, and get things done.
For the first time, we are establishing a Chief Operating Officer with end-to-end P&L responsibility across content, hardware, platform, and services. Helen Chiang has been promoted to this role and will report directly to me. Over nearly two decades at XBOX, Helen has helped build some of our most important businesses, from XBOX Live to leading Mojang and the Minecraft franchise. She will bring our businesses together under one operating model, making sure we make clear investment decisions, learn from our successes and failures, and hold ourselves accountable for results.
Thank you, Dave McCarthy, who is retiring after 17 years with XBOX. Dave has played a defining role in building the platform that millions of players rely on every day and has been a trusted partner through many of the biggest moments in XBOX's history. We wish him all the best.
These changes are about a bigger future for XBOX, not a smaller one. The next decade of gaming will be larger, more global, and more creative than anything we've seen before. This year, we'll invest as much in XBOX as we ever have, but we'll invest with greater focus, greater discipline, and greater clarity, all in service of making XBOX where the world plays and creates.
I want XBOX to be one of the few companies that entertains more than a billion people each day and gives everyone the opportunity to create and connect. I know we can achieve this goal. XBOX has many of the most beloved franchises in entertainment history, talented studios around the world, and we will return to growth in 2027.
History is full of companies that mistake longevity for inevitability. We will not be one of them.
Asha
Might be the dumbest thing I've read
You literally wrote a book. If physical copies are so pointless because they eventually rot, why print it?
Yes, everything ends eventually. But if your DVDs are rotting after five years, take better care of your shit they'll last much longer
Before streaming, I was a big DVD collector. I bought nearly a thousand movies. I thought I was building a library. And I will tell you a secret:
DVDs rot.
The glue that holds the layers together can become opaque so the laser doesn’t read the disc properly or it can simply degrade so the disc falls apart or it can warp or expand so the disc won’t spin properly in the drive.
So, in addition to needing to keep antique hardware with delicate moving parts in working order to play these games or watch these movies, the media itself is degrading.
Yeah, your purchased digital movie might get deleted from the network over rights issues at some point in the future or the service that provides it might shut down. But if you buy a BluRay and put it on a shelf for five years and then decide to watch it, there is a decent chance it won’t work.
I love a beautiful Criterion movie box set or a game with cool box art and a manual as much as the next guy, but people overly romanticize physical media. The universe is governed by entropy and everything is falling apart.
Because on PC, games are actually preserved digitally. If I buy a game on GOG, I own it. I can back it up and keep it forever.
Is it as nice as owning a physical copy? No. But console players don't even get that option. They're locked to one storefront.
Also... piracy.
CDs and DVDs aren't the dominant format anymore, but they're still produced because people value owning and preserving media. Games shouldn't be treated differently. We shouldn't just accept physical ownership slowly disappearing. Art deserves to be preserved. Not lost.
Why’s everyone so shocked that @PlayStation have announced NO more disc’s from January 2028.
It was obviously going to happen one day, no one watches DVD’s anymore, no one has a CD player for music.
This was ALWAYS going to happen. Enjoy it whilst it lasts…
Important updates:
News on physical discs for new games - https://t.co/BzZODXdWGY
News on PlayStation Store on PS3 and PS Vita - https://t.co/ev3mN6wj14
Important updates:
News on physical discs for new games - https://t.co/BzZODXdWGY
News on PlayStation Store on PS3 and PS Vita - https://t.co/ev3mN6wj14
This is a tag Heuer professional 2000 watch.
this is a watch you can find second hand (as they aren't made anymore) for less than a grand easily.
Tag Heuer is seen as entry luxury in the watch world
there is a boutique in Watford need i say more
Pre-orders for Grand Theft Auto VI will officially begin on June 25 on digital storefronts and at other select retailers.
Check out the official cover art, also available as downloadable artwork at https://t.co/XPwC8URCQ4
Xbox is currently in negotiations to close both Double Fine and Ninja Theory, as well as the previously-reported Compulsion Games https://t.co/uvlg7OSilq
Join us on June 9 at 7am PT for a #NintendoDirect followed by Nintendo Treehouse: Live!
The Nintendo Direct will be roughly 50 minutes and Nintendo Treehouse: Live will be 95 minutes.
Watch here: https://t.co/Zp54IsS30q
Looks good but man I knew the old voice cast wasn't returning but man I'm going to miss Yuri as Yosuke.
They sound fine though would wait till the full game releases to really judge the changes and P6 announced I'm happy.
Pretty good show this time can't lie. I think it does show a lot of developers are going to his shows now for their reveals. As much as i like to joke Geoff deserves a lot of respect for creating a place to give these games the respect they deserve.
I hope tga is good aswell.
Just 5 days until our biggest #SummerGameFest live show yet.
See you live on Friday at 5p ET / 2p PT / 10p BST / 11p CEST / 6a JST
https://t.co/Hp7WuL9J5M