'It's No Longer Xbox, but Microsoft Gaming.' Brand Veterans Explain Recent Layoffs
Even before the announcement of more layoffs, Xbox veterans confirmed that Microsoft bosses have now begun to interfere more in the company's games division.
Phil Spencer isn't popular among gamers this week. At most, he is considered a "hero" in many posts, although not necessarily in a flattering way for the head of Microsoft's gaming department. However, statements from Xbox veterans indicate that the latest major layoffs are most likely not Phil Spencer's decision, even if his responsibility for the condition of the brand is unquestionable.
Is Phil Spencer not (entirely) responsible for the layoffs?
We mentioned yesterday that, according to Bloomberg, the purchase of Activision Blizzard made the most important people at Microsoft very interested in the Xbox division. This seems to be confirmed by an article by IGN, which interviewed two former Xbox employees. It's worth adding that at least some of the information was conveyed prior to the announcement of the closure of four studies.
One of IGN's interviewees mentioned that Xbox's recent moves aren't the decisions of Phil Spencer and other Xbox bosses, but were dictated by Microsoft CEO Satya Nadella and CFO Amy Hood. This could account for the inconsistency between the CEO's and other representatives' previous statements from the "gaming" division of the Redmond giant and the recent layoffs.
Furthermore, one of these former veterans indicates a shift in the Xbox situation. Sales of Microsoft consoles (and more) have significantly slowed down, as has the growth in Game Pass subscriptions. Furthermore, the acquisition of Activision Blizzard took more time and money than expected, including: by resistance from the Federal Trade Commission (FTC). And the Redmond giant could spend money and time "considering the impact on people and research" of Xbox.
Of course, this doesn't mean that Spencer is without fault. Ultimately, the decisions made by people in top positions aren't driven by malice, but rather by the sales of Xbox. And these, as we know, aren't particularly impressive.
Not Xbox, but Microsoft Gaming
IGN's interviewees also highlight two matters. Xbox has expanded greatly in recent years, from a few hundred people during the Xbox 360 era to over 30,000 employees, according to recent information from a veteran. Activision Blizzard alone employs three times more people than the entire Xbox. The integration of Bethesda with Xbox hasn't yet been completed.
As a result, as one of IGN's interlocutors pointed out, we should be talking not so much about Xbox, but about Microsoft Gaming. IGN even speculates whether the takeover of Activision Blizzard King won't end the existence of the Xbox brand.
Even if we consider these theories too dramatic, we cannot deny that this week has significantly harmed the reputation of both Spencer and Microsoft overall. IGN described the previous assurances of Xbox representatives as empty words, if not outright lies, due to the closure of the studio of the well-received new game, following the layoff of nearly 2,000 people just a few months ago.
