VGC
has posted an interesting article about Xbox; basically saying that, because of the scale of Activision Blizzard's huge share of the division's profits, investors and shareholders might well be wondering why time, effort and money is being spent on the games being produced by Xbox's large range of smaller studios - as their proportion of the overall profit is relatively small.
VGC wrote:The problem Microsoft faces—and it was one entirely of its own making—is that it now owns a string of studios working on games that, when compared to Activision-Blizzard’s titles, will barely move the needle in terms of revenue growth.
For evidence of this change, look to a statement Xbox marketing VP Aaron Greenberg made in April last year, before the Activision-Blizzard acquisition. Speaking of Tango Gameworks’ Hi-Fi Rush, he said the game “was a breakout hit for us and our players in all key measurements and expectations.” Yesterday, Microsoft closed the studio.
What was a success last year has clearly been recontextualised by the new scale Microsoft is working to. The cost side of Tango Gameworks became challenged in light of an updated balance book.
The ABK acquisition has turned Xbox into a massive publisher and, as with all companies, people interested in the finances will want investment in the biggest money-making initiatives rather than the smaller things. It's a challenge faced by all large companies but it feels like this is ramping up at Xbox, with some relatively smaller studios being closed.
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what the hell is going on over at MS?
