Walter Baines 🏀

NBA Trade announcer. Father of 3. Parody. Trying to get signed to @BallsackSports. #BLM #IFB

[Shams Charania @ShamsCharania]

Developing: The Los Angeles Clippers-Toronto Raptors trade centered on Kawhi Leonard will not be complete until the NBA investigation into the Clippers is over. Statement from the Clippers to ESPN:

For the past 10 months, our organization has fully cooperated with an NBA investigation, participating in dozens of interviews, providing tens of thousands of documents, and facilitating access to our staff. While the process has been challenging, we have remained committed to transparency.

On June 30, we reached an agreement in principle to trade Kawhi Leonard to the Toronto Raptors. We have since been informed that the trade can only be finalized if the Raptors' ownership group assumes the risk of penalties related to Kawhi’s contract that could theoretically result from the ongoing investigation.  The investigation is ongoing, and we expect the trade to be finalized following its conclusion.

At the heart of this investigation are Joe Sanberg and Aspiration. We did not funnel money to Kawhi Leonard through Aspiration. Like many sophisticated investors, financial institutions, and business partners, we were victims of a fraud initiated by Sanberg, who has been convicted and sentenced to 14 years in prison.  

We recognize the uncertainty this has created and the impact it has had on our team, our fans, the Raptors organization, their fans, and the players whose futures remain affected while this process continues.

We remain confident that, when the facts are evaluated fairly and thoroughly, the NBA will confirm exactly what we have said from the beginning: We have not done what we are accused of doing.

[Walter Baines 🏀 @NBAWalterBaines]

This is unfortunate for people affected, but understandable. Thousands of employees had to go through 10+ layers of management to get things done, which is inefficient and can lead to a hectic workplace. Cutting down studio size makes sense. I’m also glad no studios were closed.

[ASHA @asha_shar]

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

[Shams Charania @ShamsCharania]

BLOCKBUSTER: The Boston Celtics have agreed to trade Jaylen Brown to the Philadelphia 76ers for Paul George, two first-round picks and two second-round picks, sources tell ESPN.

[Shams Charania @ShamsCharania]

BREAKING: The Los Angeles Clippers are nearing deal sending Kawhi Leonard to the Toronto Raptors for Brandon Ingram, Gradey Dick, 2 first-round picks, 1 pick swap and 2 second-rounders, sources tell ESPN. A return to Canada for the Raptors champion and two-time Finals MVP.

[Shams Charania @ShamsCharania]

BREAKING: The Charlotte Hornets are trading star guard LaMelo Ball and Josh Green to the Minnesota Timberwolves for Naz Reid, a 2033 unprotected first-round pick, three first-round pick swaps (2028, 2029, 2030) and three second-round picks (2029, 2032, 2033), sources tell ESPN.

[Shams Charania @ShamsCharania]

BLOCKBUSTER: The Milwaukee Bucks are trading franchise icon Giannis Antetokounmpo and Bobby Portis to the Miami Heat for Tyler Herro, Kel'el Ware, Jaime Jaquez Jr., Kasparas Jakucionis, 3 first-round picks (including No. 13), 1 pick swap and 1 second-rounder, sources tell ESPN.

[Walter Baines 🏀 @NBAWalterBaines]

@Danny2KYT 🔥

[Shams Charania @ShamsCharania]

Just in: Minnesota is sending Julius Randle and the No. 28 pick in the NBA Draft to the Brooklyn Nets in a three-team trade that sends Nic Claxton to the Chicago Bulls, sources tell ESPN. The Timberwolves will acquire Brooklyn’s No. 33 pick for Randle and No. 28.

[Walter Baines 🏀 @NBAWalterBaines]

@Wario64 Every game that comes out of Xbox studios after this is just going to be heavy hitters from massive AAA IPs huh? No more smaller, unique and creative offerings…
This is unfortunate and I hope the best for people affected.

[Walter Baines 🏀 @NBAWalterBaines]

Really feels like if you’re not making cinematic, movie style games in the AAA world, your whole existence as a studio is a gamble. Just sad, but I understand the decision.

[Walter Baines 🏀 @NBAWalterBaines]

This is terrible. Great teams with a lot of great people. This industry is not very kind to smaller studios, which is unfortunate because of the amazing and unique output they offer.

[Tom Warren @tomwarren]

Xbox is closing down Hellblade creator Ninja Theory. Compulsion Games and Double Fine are also in “active negotiations” about spinning off https://t.co/2tvywBVnF0

[Walter Baines 🏀 @NBAWalterBaines]

Layoffs are terrible, and should never be looked at positively. However, it is understandable, as previous management has left XBOX in a bad position with their poor decisions. I hope the best for anyone affected, and that goes for anyone in general aside from this industry.

[ASHA @asha_shar]

We just shared with our team the realities we need to navigate as we work to reset the XBOX business. We won't succeed by hiding hard truths, nor will we succeed by doing the same thing and expecting different results. See the note here: https://t.co/IahtBNzwnR

[Walter Baines 🏀 @NBAWalterBaines]

I have been hearing a lot of controversy around exclusives on #XBOXGamesShowcase. My take is that exclusives are important. But as a consumer, I can’t look at more people being able to play games as a bad thing. What’s most important is if the games are good! #XBOX #PS

[Walter Baines 🏀 @NBAWalterBaines]

I just went 82-0, my favourite so far! https://t.co/rcoU3Is46R #NBA #82and0

[Walter Baines 🏀 @NBAWalterBaines]

I went 82-0 again! Very happy with the lineup.
https://t.co/6o6N38WF4K #NBA #82and0

[Walter Baines 🏀 @NBAWalterBaines]

What an interesting team! #82-0

[Walter Baines 🏀 @NBAWalterBaines]

I just went 82-0, think you can go 82-0? https://t.co/s6b15iRUe2 #NBA #82and0

[Walter Baines 🏀 @NBAWalterBaines]

Congratulations!

[Forza Horizon @ForzaHorizon]

Forza Horizon 6? More like Forza Horizon 6-Million! 🤯 Thank you all for joining us at Horizon Japan ❤️

[Walter Baines 🏀 @NBAWalterBaines]

How exciting!

[TJFBTZ @TJFBTZ]

live in your lie out now
#music #newmusic
https://t.co/pMKdNWpdjf

[ASHA @asha_shar]

Game Pass Ultimate has become too expensive for too many players. Starting today, we’re dropping the price from $29.99 to $22.99/month.
Future Call of Duty titles will no longer join Game Pass Ultimate on day one. They will join this tier the following holiday after launch (about a year later). Current Call of Duty titles will remain available to Ultimate subscribers.
We’ll keep learning and evolving Game Pass to better match what matters to players.
https://t.co/6zesAEP6HH