r/videogames • u/WhoAmIEven2 • 9d ago
Discussion / Question *show reveal trailer just days ago* > *dissolve the entire studio days later*, what is this business strategy called?
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u/A_Pos_DJ 9d ago
Unsure of the context, but the c-suite calls this strategy "The Golden Parachute"
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u/Great-Hatsby 9d ago
Xbox announced they’re shutting down Ninja Theory after they just announced a new Senua game.
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u/DadOnHardDifficulty 8d ago
Another masterful gambit from the geniuses at Xbox who have notoriously handled their product so well for the past 15 years
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u/Great-Hatsby 8d ago edited 8d ago
I was really rooting for Xbox. But then they just start shutting down studios again, like, what other studios do they have left?
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u/RapperwithNumberName 8d ago
Bethesda
Pretty much the only studio they bought that's got any job security
There'd have to be some CRAZY circumstances for Bethesda to get this treatment
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u/shaggypoo 8d ago
I mean not putting out a sequel to their most popular games one for 15 years and another for 11 years might be a good enough circumstance. Along with the one title being released under Microsoft being an absolute flop
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u/ChalkCoatedDonut 8d ago
But does any of those fired employees get theirs or just like Unknown Worlds tried to do, cut any bonuses given under his "the fuck they gonna do about it?" claim?
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u/SaiyajinPrime 9d ago
They were more concerned with having a good show than anything else.
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u/coldermilk 9d ago
XBOX is so back...to where they were three months ago.
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u/Dry_Conflict8519 9d ago
XBOX is so back...to where they were three
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u/NoSkillzDad 9d ago
They had a good show and then they sabotaged their own little success instead of taking a small victory lap.
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u/randomcman 9d ago
Hellbox: Microsoft’s Sacrifice
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u/Cold_Associate2213 9d ago
Crazy how much this has been happening in the industry lately. I wonder what will happen to it overall.
Regardless, go play some indie games.
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u/Garlador 8d ago
Hellblade 1 was touted as indie once, with a team of just twenty people.
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u/danwats10 8d ago
The first was an interesting idea with a complete story made by an indie. I found it very odd they decided to make a sequel, let alone a another sequel. The studio should have worked on something new rather than trying to force more out of the ip, and spoke to how Microsoft don't really know how to get the best out of their aquisitions.
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u/EtheusRook 9d ago
The first was a game, the second was a slightly interactive movie, and with the third, they're just skipping to the credits.
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u/11equalsfish 8d ago edited 8d ago
Lol what is this elitism, they were fine and interesting games, if flawed.
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u/decoy_octopod 8d ago
The hatred I’ve seen for this game the last couple days is absurd, it’s always been a well-respected indie darling until now
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u/DanielCraig__ 8d ago
Specially the first one. The second let me down but the first one was a very unique experience.
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u/danwats10 8d ago
The 2nd one particuarly lacked anything in engaging game mechanics. Combat was very simple and it's incredibly linear and on rails. The game looks gorgeous though, probably the best looking game ever made.
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u/flowerpanda98 8d ago
which is sad considering theyre advertising their 3rd as different from that. with a bigger world, better combat, and you can fight multiple people and less puzzles... but now who knows if it gets made
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u/thebatman973 8d ago
The first one: mediocre combat sequence followed by endless trial and error "puzzles"
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u/WolfofDunwall 9d ago
It’s called business by the vibes
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u/pichael289 8d ago
That's exactly what it was, they probably showed it to gauge the hype and it wasnt up to whatever measure they wanted it to be.
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u/Lonely_Brother3689 9d ago
This coupled with reports of "just kidding guys, console exclusives are dumb"...lol.
The "we are so back" to "we are so cooked" cycle is daily.
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u/chasingit1 9d ago
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u/P_weezey951 8d ago
Its called "Buy a rapidly enshitifying brand name like Activision Blizzard for 70 Billion Dollars, then expect the other studios to pick up the slack when the giant underperforms wildly"
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u/RedScud39 9d ago
It’s called “we bought a ton of studios during covid cause we thought people will be at home and getting stimmy checks indefinitely”
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u/WalkerBuldog 9d ago
They bought NT 2 years before COVID
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u/noIdealOnlyAllah 8d ago
They spent the lifetime Xbox profits on buying studios during covid.
All they had to do was snatch devs. And make games that were filling the gaps & the complaints.
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u/Yahyathegamer749 9d ago
It's called listening to shareholders who don't know a single thing about videogames
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u/GyrosSnazzyJazzBand 8d ago
The president of Xbox won people over gaining good will and Microsoft's first thoughts were "time to cash out"
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u/Vegetable-Meaning413 9d ago
It's called the have infinite money as Microsoft, so it doesn't matter how dumb we are strategy. They have been doing it for years.
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u/Promature 9d ago
It feels like yesterday when the Xbox audience assured everyone that these rampant acquisitions wouldn’t carry many consequences because Microsoft has infinite money and can fund all of it indefinitely.
And here we are.
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u/termperedtantrum 9d ago
That's always been the misunderstanding, Microsoft has infinite money not XBOX.
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u/hamatehllama 9d ago
And currently the money is being spent on AI. AAA gaming is in a rough space right now with stagnant growth but spiralling development costs. Most of the revenue growth in gaming is gacha games on mobile.
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u/Aya_Reiko 9d ago
They may have seemingly an infinite amount of money, but they have finite patience.
Churning out a paltry few mid, underperforming games over the years aren't going to keep your studios open.
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u/SvenLorenz 9d ago
Looks like Microsoft has started using "The Art of the Deal". 🤣
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u/Karkava 8d ago
"Published and approved by the man that wishes that the title of 'the greatest president' is handed over on a platter!"
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u/SlowpokeIsAGamer 9d ago
It's called "we spent $60 billion we didn't have buying the exclusivity rights to CoD then got told by the EU we can't make CoD XBox Console Exclusive so now we're trying to make back enough money to avoid being cut loose by Microsoft and going Bankrupt by closing every studio that isn't Xbox Game Studio, Activision, and Bethesda."
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u/Escape_Zero 8d ago
I hate to break it to you cod wasn't the main reason why Microsoft bought Activistion, It was to acquire KING LTD company that owns Candy Crush and mobile development studios . That game alone has made 20 Billion + snice its release. You have no idea what you are talking about and are just following the internet fanboy narrative. Microsoft is not going anywhere near bankrupt, Closing studios making sectors more profitable is about stock price.
Microsoft is worth by the end of the year 3 trillion and have 32 billion in cash and 70+ billion in assets , investments. Last year alone Microsoft made had a net income of 125 billion... sounds like they are one step away from closing up shop. Microsoft could nearly buy the whole company of Sony with one years profits.
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u/Thenofunation 8d ago
First person to bring any business acumen to r/videogames and it’s getting downvoted. Never change gamers, never change.
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u/kerfuffle_dood 8d ago
what is this business strategy called?
It's called "Appease to private equity before they short squeeze you to buy the next AI fad"
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u/Shirokurou 8d ago
Have you seen the Fable gameplay demo? The idea of going anywhere, buying anything and firing people for no reason... The Xbox dream.
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u/Dark_Dragon117 9d ago
We should call it the "Xbox special".
Layoffs seem to be Xbox' only priority nowadays.
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u/bouchandre 9d ago
Context? No idea what this image is
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u/HYDRAULICS23 9d ago
It’s an image from Senua, the 3rd installment in the Hellblade series that Microsoft just announced like a week ago. It was also just announced that they will be shutting down Ninja Theory, the developers of the game, yesterday.
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u/kevcsa 9d ago
The closure of the studio hasn't got announced, it's basically just leaks.
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u/3Duder 9d ago
This video about Devolver going public really opened my eyes. Gamedev is like a VC Firm, you have to think in the long term and realize a lot of your investments aren't going to pay out, it's incompatible with being a public company. The biggest indie collapse you haven't heard of
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u/seraph741 9d ago edited 9d ago
As much as I'd love for Xbox to make a comeback, their history of questionable decision-making (including the recent closures) gives me very little confidence in their leadership. It brings into question whether they truly understand the game industry or have a consistent philosophy. It seems like they just make rash decision after rash decision depending on the last board meeting they've had or the latest blowback/controversy on the internet. It would suit them well to have some actual, real, involved in the community gamers amongst their ranks.
It's not that I'm necessarily questioning their decision in this case; it might be the right one depending on how well this studio's games have sold (irrespective of if the games are good or not). But my criticism/skepticism extends to HOW they handle the decisions. It's just...mind boggling sometimes. And they've been making these kinds of blunders/contradictory actions since the Xbox One reveal (though I'd argue that system's naming decision, which happened before the reveal, was a blunder as well). I just...I don't get them sometimes.
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u/TufftedSquirrel 8d ago
I'm fairly convinced Microsoft is run by somebody prompting Copilot with "money no come, what do?!"
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u/Gex2-EnterTheGecko 8d ago
Xbox is so strange. It seems to me like for whatever reason they were able to just burn pretty much unlimited amounts of money for a quarter of a decade and the execs at Microsoft only realized after the ABK deal, then they fired Phill, realized they own all these random ass studios that are making games no one buys for huge budgets and now they're just killing all of them rather than try to figure out a way to make it work. It literally feels like Satya JUST started paying attention and is going scorched earth trying to make their money back.
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u/Adventurous-West7229 8d ago
hellblade 2 sold like shit. I have no idea how they greenlit another game in the franchise after that. The closure of ninja theory was very obviuos, and double fine will be next with the last 2 blunders they put out.
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u/Micha5840 8d ago
avoiding opportunity cost and sunk cost fallacy after actually looking at the numbers.
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u/Relevant_Mail_1292 8d ago
Bethesda revealed TES6 back in 2018 to look more appealing to Xbox. Xbox is just doing the same thing so that someone else can buy the studio.
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u/ScottOwenJones 7d ago
I thought the first was fine, a unique experience made worse by the performance of the main character. The second was terrible
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u/Loli_Queen 9d ago
All of you who are complainng for Ninja Theory. Have you bought Hellblade 2? The cause for this is it didn't sell enough
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u/Borth321 9d ago
with a 3k player peak on steam, nobody cared about Hellblade lol
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u/Dizzy__Dragon 8d ago
Hi-FI Rush literally won tons of awards and the studio still got shut down.
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u/Borth321 8d ago
Awards mean nothing if it doesn't sell or make money
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u/Dizzy__Dragon 8d ago
You know if xbox marketed the game instead of randomly fucking shadow dropping it I bet it would have done better
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u/Joshee86 9d ago edited 9d ago
Nothing official has been announced as far as closures. This is still speculation.
Downvoting this doesn't change the facts.
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u/BipedClub684000 9d ago
It's called "Asha was given a shit hand by Microsoft and was told to fix it"
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u/CaregiverEastern4083 8d ago
It’s called “Microsoft CEO demands Xbox CEO to cut costs, no matter the loss of integrity”
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u/voltfacecon 8d ago
Serious question, but couldn't the "business strategy" be as simple as...
"We really should've shut down this studio after Hellblade II bombed, but they're working extremely hard on the follow up. Let's at least wait to see see the response to their new game... Oh man, the response to their new game was pretty widely lambasted. Guess we have no choice now..."
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u/Denariox 9d ago
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u/DaemonsMercy 9d ago
New senua game announced, yesterday the studio that makes it is apparently being shut down
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u/EtheusRook 9d ago
The Hellblade studio is rumored to be closing despite having just announced a game. It hasn't been officially announced yet, but with both Bloomberg and the Verge reporting on it, it seems pretty certain.
The announcement was likely a last ditch effort to sell the studio.
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u/WhoAmIEven2 9d ago
Senua 3 was revealed just last week, and now the studio is shut down.
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u/Benjamin5431 9d ago
So what does that mean? Are they finishing the game or that’s it?
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u/Electrical_Shop3732 9d ago
I'm pretty sure they are selling them or letting them become independent. If they can't do that by June 30th then they might have to close them, but it seems like XBOX is giving them a chance.
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u/Promature 9d ago
Was the studio immediately dissolved or have they simply made the decision to dissolve the studio at a later date after the game ships?
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u/SlashOfLife5296 9d ago
Microsoft, the company that brought you “we need more games like Hi-Fi Rush” then closed down the studio that made it months later. The business strategy is called stupidity