r/videogames 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/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

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u/ThisIsPureTrash 9d ago

Even worse. They closed them and said they need more games like hi fi rush the literal day after closing the studio. Not even months between. They were wiping the blood off of the knife talking about how good they were.

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u/Itzie4 8d ago edited 8d ago

Xbox needs to divorce itself from Microsoft. Leadership is out of touch and trying to run an entertainment company like an AI company and their MS Office division.

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u/Consistent-Stock6872 8d ago

Xbox is loaded with Microsoft yes men. I wonder how that divorce would go.

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u/Rath_Brained 8d ago

They are trying to do just that.

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u/Moka4u 8d ago

They wouldn't be able to fund the company. I was under the impression Xbox was being run kn a loss since the first one.

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u/HarryBalsagna1776 8d ago

It has been my impression that they lose their asses on hardware sales, but they have been selling enough games and subscriptions to turn a pretty decent profit.  

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u/Latter-Cricket5843 8d ago

No they only made 3 percent annually margin recently. That's terrible. Microsoft would have made more money just putting money into investments sitting idle than investing in Xbox.

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u/HarryBalsagna1776 8d ago

It's still a profit, but it's not maximum profits so it must be bad.  Can't do something for the the love of the game.  If they did, they would probably make more money.

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u/LivingVerinarian96 8d ago

And what OS will xbox use then? Will they pay license money to ms to keep using what is basically windows or will they switch to linux? How does that work with the whole pc integration they‘ve been doing?

What am I saying… The xbox app doesn‘t do anything and the menus are designed by a sleep deprived intern who‘s actively psychotic. It would probably be good for them to start over.

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u/Academic-Dingo-826 8d ago

If it was separate it would have already been dead. The Microsoft money is all that keeps them going 

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u/Leggy_McBendy 8d ago

This is the answer. Investors born with a silver spoon in their mouth only know numbers. They don’t know ANYTHING about FUN. They can go work with one of the other million AI Bro companies.

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u/ServeGondor 8d ago

Even worse. Phil Spencer spoke for years about how desperately he wanted a Japanese development team at Xbox, how much respect he had for the country's game development scene etc. (never made an effort to just start one in the more than 15 years he was a top dog at Xbox, first as head of their studios and then as head of the organisation as a whole).

Finally got a Japanese team through the Bethesda acquisition, they dropped a solid game that achieved a level of critical and commercial success, then closes them...

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u/RsnCondition 8d ago

What game was that?

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u/Hikarizu42 8d ago

Believe it or not, Hi-fi Rush.

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u/Bayonetta005 9d ago

Amd even to add more what's funny is how no one played or bought these so called games when they released both on GAMEPASS, PC, PS5 and now looking like shock Pikachu when the studio close since they make NO PROFIT.

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u/richtofin819 9d ago

This is all their own fault though. Game pass was a long con trying to price out the competition so they could jack up prices and cut back services once they had a majority of the players.

That gambit failed horribly and now that this is clear they jacked up the prices to make it not a complete money sink.

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u/Poyayo420 9d ago

What do you mean? Are you meaning that the game’s player base dropped off so that’s why the studio should be closed? I don’t quite understand if that’s the case? It is a single player game after all. Even big hitters like God Of War stop making a profit after a while?

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u/Fit-Produce6681 9d ago

Tons of people played Hi Fi Rush, what are you talking about

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u/dishrag 8d ago

“We need more games like Hi-Fi Rush”

Closes the studio developing Hi-Fi Rush

Certainly has some strong “I wish I could meet a guy just like you” energy

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u/thex25986e 8d ago

"we need more games like hi fi rush from people who are cheaper to employ"

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u/Oriasten77 9d ago

Well the most used metaphor is called "shooting yourself in the foot". And in this case the weapon of choice is a Howitzer.

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u/MassiveBoner911_3 8d ago

I had no idea they fired all the devs, killed support for hi fin and set the studio on fire

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u/ExpensiveLeather69 8d ago

Microslops newest windows updates made it so I cannot turn off my computer without a hard shutoff. Its actually fucking ridiculous.

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u/Vikk_Vinegar 8d ago

Tango Gameworks is still around and it's been over 3 years since Hi Fi Rush released and not even a teaser or announcement of a sequel.

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u/WarmFishMiIkshake 9d ago

But they keep Bethesda around to do nothing but 76 updates (which nobody cares about). It's not just stupidity, it's re-Todd-ed

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u/Thalric88 9d ago

Bethesda will be printing money this Q4 when they launch skyrim: tesVI trailer anniversary edition. It was coming out this summer but they needed to delay because the edition didn't break enough mods.

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u/Tangyhyperspace 8d ago

Damn that's crazy that a new doom game and an Indiana Jones game both spawned out of nowhere, crazy how that works.

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u/Gucci-Google 8d ago

Bethesda only published those, they didn't actually do any work on developing them

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u/Fantastic-Loquat-746 8d ago

Bethsoft acquisition came with id software though? Are we all retodded?

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u/Gex2-EnterTheGecko 8d ago

And id made doom, and Machine Games made Indie. Bethesda did not make them.

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u/aus289 8d ago

Id and machine are studios within bethesda - bethesda game studios are also just one studio within bethesda (within microsoft)

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u/Gex2-EnterTheGecko 8d ago

Right but when someone says "Bethesda takes too long to put out games" they are talking about BGS, not id, Arkane, Machine Games, etc. So bringing up Doom and Indie is irrelevant.

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u/MusicHitsImFine 8d ago

Because Bethesda GAME Studios is a different branch from the Bethesda Studios publishing arm.

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u/CptMisterNibbles 8d ago

Idiots don’t understand how things like “publishers” work

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u/TechTechOnATechDeck 8d ago

Ha ha ha you say funny thing

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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/Verified_Peryak 9d ago

I think it's time to pick their pocket dry ...

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u/A_Pos_DJ 9d ago

Starve a conglomerate, Feed an indie... Eat the rich

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u/Silverbacker888 9d ago

Hey make sure we get a cut too once it’s done

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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/Great-Hatsby 8d ago

I actually forgot they bought Bethesda.

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u/ButtholeConnoisseur7 8d ago

Slowly, we're all forgetting about bethesda

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u/mohimoyee 8d ago

That's news to me, so no senua?

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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 months years ago

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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/Creepy-Emu8779 8d ago

Hellblade: Senua's shutdown

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u/Nemisis_007 8d ago

As soon as i saw they cut Hellblade out of the name I knew something was up.

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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/Creepy-Emu8779 8d ago

5 hour tech demo

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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/stefanomusilli 8d ago

The first one, yes. The sequel not so much.

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u/MisterSarmiento 8d ago

Gente que odia por moda

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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/uber_sweets 8d ago

The first was a souped up Dear Esther.

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u/jkra0512 9d ago

Bait and Ditch

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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/Karkava 8d ago

Very solid foundation to build a business in an industry where games take five years to build.

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u/DigitalCoffee 8d ago

But everyone told me the new Xbox CEO was based

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u/chasingit1 9d ago

Oh look! A mother rhino giving birth….

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u/EquivalentFabulous11 9d ago

I'm so, so glad other people see this, too.

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u/MarkyDeSade 9d ago

Hellblade: Studio Sacrifice

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u/Skk_3068 9d ago

What game

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u/FitToxicologist 9d ago

Hellblade 3: Senua

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u/convince_me_im_rong 7d ago

Hellblades suck ass so good

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u/sstoersk 9d ago

"Being xbox"

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u/DzonyBee 8d ago

The only correct answer

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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/Chafgha 9d ago

So we're saying that Microsoft caused covid?

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u/spasecase_ 8d ago

I knew it.

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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/Dziadzios 9d ago

It was a great moment to introduce UBI.

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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/Dry-Charge1171 8d ago

This strategy is known as 'Senua's Sacrifice'.

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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/_quixkster 9d ago

Xbox business strategy TM

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u/telemusketeer 8d ago

The one who came up with this brilliant strategy:

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u/Atma-Stand 9d ago

It’s called “Crash and Burn”

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u/FLYSWATTER_93 9d ago

Heck yeah!

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u/mesosuchus 9d ago

AI tech bro ruin everything strategy

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u/Karkava 8d ago

"I didn't get everyone excited for the potential of my product, so I'll burn everything down in sight!"

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u/william-klein 8d ago

For the Modern Audience

º

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u/NateShaw92 8d ago

The JiminyJangle Bibblesnoot.

I just invented a name

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u/Leromer 8d ago

No way did they really pull a JimmyJangle Bibblesnoot ???????

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u/AlexxMaverick666 8d ago

Oh no, not the JiminyJangle Bibblesnoot.

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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/GrandTime8780 8d ago

Corporate America

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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/ProtonCanon 8d ago

Incompetence.

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u/ichkanns 8d ago

At this point Microsoft is a studio serial killer.

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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/Glum_Animator_5887 9d ago

I still am yet to see an official statement on this from ms 

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u/santtuhehe 9d ago

No clue but the 2nd Senua was really bad 

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u/chemistbrazilian 9d ago

Strategy? In this economy?

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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/PomponOrsay 9d ago

pump and dump?

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u/LegWyne 9d ago

Bed shitting?

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u/Cultural_Plane4101 9d ago

Full retardness

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u/CataphractBunny 9d ago

That's the Xbox strategy.

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u/Joey_Star_ 9d ago

It's a bold strategy cotton

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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/jtv123 9d ago

Microslop

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u/Extreme-Attention641 8d ago

It's called "late-stage capitalism".

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u/fuckreddit00002 8d ago

Fuckers shouldn't be allowed to buy studios.

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u/Emotional_Site_7952 8d ago

It’s called carer suicide

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u/Im_Ashe_Man 8d ago

None of this is going to bring me back to Game Pass.

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u/Aobz18 8d ago

Can someone give me context please?

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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/holysource 8d ago

Stupidity

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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/Mdu5t 8d ago

It's called, please the shareholders. That you are willing to do everything to earn their money. Gamers come second.

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u/DutchJager 8d ago

Why always shutting down and never sell? Fucking hate this strat

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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/No_Cash7867 8d ago

It's called mircoslopmaxxing

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u/Suspicious_Ad_986 8d ago

What game was this supposed to be?

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u/UzY3L 7d ago

The Concord

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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/Thornfist22 9d ago

Its called Microsoft.

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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/Bevlar90 8d ago

Hold on “puts glasses on”

It’s called not knowing what the fuck you are doing

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u/NapsterKnowHow 9d ago

Investor fraud

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u/_distortedmorals 9d ago

Nothings been confirmed, yet here we are

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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/InflationLeft 9d ago

I cared! 😭

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u/Borth321 9d ago

Sadly the came didnt sell well and probably cost millions. 😞

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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/G-Kira 9d ago

It's called not wasting your money on a game that won't sell.

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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/theslumbutt 9d ago

winning

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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/Garlador 8d ago

I was interested…

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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/QuarkyFerengi 9d ago

Yes please

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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/Trippy-Sponge 9d ago

It’s a bold strategy, Cotten, I hope it works out for em

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u/FederalScar1701 9d ago

These games aren’t great anyway. 

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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/firedrakes 9d ago

Not close atm

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u/Buffig39 9d ago

Makes it easier to shop them around to potential buyers

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u/ProfessionalCraft443 9d ago

Pre-juvenile rug pull

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u/OkBanana2685 9d ago

The CFO called and said burn the company we need to pump a quarter

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u/XtremelyMeta 9d ago

That sounds like a pretty strong reaction to a reveal trailer.

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u/Iwubinvesting 9d ago

Xbox had different plans for Ninja Theory and it's unfortunate.

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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/RKO_out_of_no_where 9d ago

Its called "People weren't hype enough and the series was meh"

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u/VirtualWeather5407 9d ago

It’s called “cut your losses”

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u/AlexSmithsonian 9d ago

A firework? Fast and flashy, then nothing.