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News Xbox closes Arkane Austin, Tango Gameworks, and others.

Microsoft after Tango makes a banger of a game that earns them a lot of goodwill:

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This is terrible, but honestly not surprising. I know some people on the internet were cheering for this acquisition, but these are the negatives that come with industry consolidation. I’ve never been a fan of it.

I also don’t trust Microsoft with M&As, they have a bad track record, even apart from gaming.
 
Dizzle said:
Look, I'm not here to say "I told you so" because I wasn't especially vocal about the acquisition, so I don't really have skin in the game. I do want to poke a couple of holes in your narrative though.

The lack of growth in Gamespass could be predicted precisely because of the lack of transparency. It's the Netflix model. It's an infinite growth model. It has never proven to be sustainable. It was a red flag with foresight not hindsight.

More importantly this is not a failure for Microsoft. This is the strategy working as intended. When you are big enough that you can pursue a strategy of aggressive M&A, you don't expect every acquisition to pay off. You are intending to shut down all sectors that aren't profit making. It may be that, by some kind of accounting black magic, Microsoft could have earned enough money to not shut down these studios. But shutting them down was always in the cards.
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Just as an aside, I wasn't in favour of both acquisitions either - I'm just positing why someone would've been supportive of it. Industry consolidation is bad, and will continue to be bad.

That said, most people don't pay attention to industry data to perhaps recognise that the Netflix model isn't sustainable - because even if you get the model up-and-running, you quickly become a victim of your own success (as seen with Netflix right now!)

I would agree that shut downs were likely to always happen, but I can't foresee a world in which the plan was to shutter a not insignificant number of the studios you've just bought!
 
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I think we have to bear in mind that Microsoft's 180 in their strategy has been incredibly rapid, and very, very few could have predicted the industry would enter such a dark and shitty place in the space of a couple of years. There were elements of Microsoft's strategy at the time that made sense, and there is a universe out there where their eyes didn't get too big for their stomach regarding Acti-Blizz where maybe these studios could have been saved. But alas, it seems like Microsoft have just gone 'Hey we own COD, Fallout, Elder Scrolls and Halo now, everything else can go hang.' Which is an unfortunate new development, and its the devs who pay the price. A leopard never changes its spots I suppose.

Even so, the optics of them shuttering Tango when they produced such a cult hit and GOTY candidate in Hi-Fi Rush, after initially sending the game out to die with shocking marketing, are absolutely terrible and I hope Spencer gets raked over coals for it. We can safely say the the days of 'here's everything you could ever want on Gamepass' are gone. They're going to be rinsing as much out of their popular IP as possible from now on...which is what got Acti-Blizz in trouble in the first place, so those who don't learn from history etc etc.
 
Brock Reiher said:
Seems a little naive for a guy who has been in the business for so long, doesn't it?
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To be fair: What was Mikami supposed to do, otherwise, though? He's a creator at heart, who wanted to move on to do other things, but ideally wanted to make sure that Tango's position would've been secured after his departure.

For all sakes and purposes, he did his part. It's Xbox who didn't operate in good faith.
 
I find it hilarious that some people are still putting most of the blame for the current state of Xbox on Don Mattrick. He worked there for 6 years, was in charge for just 3 of those and left over a decade ago. Yes, the Xbox One launch was a disaster, but nothing that couldn't be turned around with a steady stream of quality software. Even if the Xbox One was a lost cause, exciting Xbox console exclusives would have set up the Series S/X for a comeback. But that's the thing, you need quality software, which Xbox hasn't really delivered on since the mid-late 360 days.

Phil Spencer has been managing Microsoft Studios since 2008 and has been in charge of Xbox as a whole since 2013. He's had more than enough time in the driver's seat on the software side, and even got what is essentially a blank cheque since he took over the division. Why are people still making excuses for him?
 
All of these acquisitions, all that money spent, just for them to become one giant CoD factory.

It's over for Xbox.
 
John Omaha said:
I find it hilarious that some people are still putting most of the blame for the current state of Xbox on Don Mattrick. He worked there for 6 years, was in charge for just 3 of those and left over a decade ago. Yes, the Xbox One launch was a disaster, but nothing that couldn't be turned around with a steady stream of quality software. Even if the Xbox One was a lost cause, exciting Xbox console exclusives would have set up the Series S/X for a comeback. But that's the thing, you need quality software, which Xbox hasn't really delivered on since the mid-late 360 days.

Phil Spencer has been managing Microsoft Studios since 2008 and has been in charge of Xbox as a whole since 2013. He's had more than enough time in the driver's seat on the software side, and even got what is essentially a blank cheque since he took over the division. Why are people still making excuses for him?
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Not to mention that Nintendo was in an even worse state in 2013 than Xbox was, and managed to turn it all around by 2017.
 
Microsoft embracing the Activision way of doing things: shut down everything that isn't one of the big tentpoles.

Ninja Theory and Double Fine are both probably shutdown after their next game. Inexile and Obsidian either become BGS support studios or merged into them.
 
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Armoured_Bear said:
Apart from silly fanboys, did anyone of sound mind celebrate?
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The unfortunate reality is yes, and I can only imagine that it's because corporations made it sound like some kind of victory. I guess people just celebrate any news like a new possibility for crossovers or something.

Granted, a lot of people were skeptical, but I've seen plenty of weirdly positive tweets not just from "stick it to the sony" crowd
 
John Omaha said:
Why are people still making excuses for him?
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Because Phil has some outward PR charisma. He very blatantly tried to copy the "I'm your dad" strategy that endeared Reggie to Nintendo fans. Early on, it worked; it's what gave Microsoft a fighting chance amidst Sony's fuckup with the PS5 launch. A lot of people still are under that impression because that's all they see of Phil Spencer; a guy who loves games and will passionately talk about how much he loves them.

The problem Phil has is that he can't actually seem to keep the mask on outside of those prepared statements. Whenever you read anything he's ever said that isn't before a rolling camera, he comes across as the same steely executive that is dime a dozen at companies like Microsoft. Loads of empty words, a handshake and a fuck you. The moment you peek behind the curtain is when the charade falls apart. Most people just never bother trying to do so.
 
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Neverx said:
Fuck Microsoft, imagine putting out the best game in years and you close studio a year later
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It's nothing new for Microsoft. In 2007, they shut down FASA Studio (MechAssault, Crimson Skies) and sold Bizarre Creations (Project Gotham Racing, Geometry Wars). I'm sure there are more pre-ABK instances that I'm less familiar with.

There is only one kind of studio they are interested in, one that produces consistent uber hits. One slow-seller and you're out. Honestly, if Rare's next title isn't a hit, they could be next.
 
Laim Robertson's Game History Secrets Donkey Kong Vicarious Visions video is a duology and the second part will focus on the Microsoft merger.

 
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Vookatos said:
The unfortunate reality is yes, and I can only imagine that it's because corporations made it sound like some kind of victory. I guess people just celebrate any news like a new possibility for crossovers or something.

Granted, a lot of people were skeptical, but I've seen plenty of weirdly positive tweets not just from "stick it to the sony" crowd
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Keep in mind that the merger was also brought to public focus right after ActiBliz was hit with a literal truckload of sexual harassment allegations. The notion of the C-suite that was involved with said allegations getting the boot (which to my understanding, Microsoft did do and is something that usually doesn't happen) was what made people's opinions on the merger pretty complicated to say the least.

It's near-impossible to decouple that truckload of allegations with the circumstances of the ActiBliz merger.
 
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The least surprising outcome from the third place first party going on a spending spree. Damn shame this has to happen. American corporations under late stage capitalism are freakin’ grim.
 
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Regulus Tera said:
I’ll be honest, I’m surprised Microsoft hasn’t gotten rid of Rare considering how easily they discard other subsidiaries.
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Sea of Thieves is doing well.

Though I wonder if there isn't some sort of symbolic reason as well, with Rare being their first major acquisition (and from Nintendo, no less).
 
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Lugia667 said:
apparently there are rumors that Redfall DLC was being worked on not even 5 hours ago

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Wouldn't be a surprise at all. The reactions from folks affected on X speak volumes in lieu of the blissfully ignorant cake toppers celebratory tweets.

Sarah seemed pretty upbeat after her Dunkin' break this morning.
 
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John Omaha said:
I find it hilarious that some people are still putting most of the blame for the current state of Xbox on Don Mattrick. He worked there for 6 years, was in charge for just 3 of those and left over a decade ago. Yes, the Xbox One launch was a disaster, but nothing that couldn't be turned around with a steady stream of quality software. Even if the Xbox One was a lost cause, exciting Xbox console exclusives would have set up the Series S/X for a comeback. But that's the thing, you need quality software, which Xbox hasn't really delivered on since the mid-late 360 days.

Phil Spencer has been managing Microsoft Studios since 2008 and has been in charge of Xbox as a whole since 2013. He's had more than enough time in the driver's seat on the software side, and even got what is essentially a blank cheque since he took over the division. Why are people still making excuses for him?
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Microsoft can buy as many studios as they want to but they have two major problems.

1. They have a poor internal culture of making great games
2. They are severely mismanaged

On top of the above two points, Microsoft's focus as a business in the last decade has been on subscriptions and driving adoption rates, both to businesses and consumers. When you couple the above two problems with their focus and look at what they did with Xbox hardware and Game Pass, it's a recipe for disaster. Game Pass might be great from a consumer's perspective, but it's problematic for even the richest company in the world. The internet was making fun of people for asking how Game Pass is sustainable but it's a fair question. The cost of game development is only increasing, Xbox hardware is in steep decline, Game Pass subscriptions have stagnated and the brand perception is at an all time low.

You take all that into account and add on that they've decided to shift strategy in the middle of last generation and again this generation and in that same process, acquired a number of studios and two big publishers...yeah this was going to happen eventually. Anyway, I hope they'll actually stop trying to acquire as many companies, they can't even manage what they already own and just end up shutting down beloved studios.

I honestly feel like Microsoft as a whole is just not good at B2C, they're a much better B2B company. They fundamentally misunderstand a lot of their consumer business and seemingly have a hard time managing it.
 
Microsoft, please, before you inevitably close Rare, approach Nintendo and let them make an offer for it.

Also, get fucked for all these firings.
 
Sheldon said:
But if game pass and the need to differentiate themselves from their competitor that comes from being in last place can't get Microsoft to value creative mid-budget offerings, all hope is lost for Xbox.
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I think they DID value those kinds of games because of Game Pass, but then Game Pass stagnated and even retracted, as far as we know from reports. So they've probably deemed those efforts a failure internally, and will try to position Call of Duty as their selling point going forward instead
 
Lugia667 said:
apparently Grubb just said on his podcast that Perfect Dark is in a really rough state atm
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It's been suspected this has been the case for a while from precious reports. Leads at the studio making it left, and then they announced a partnership with Crystal Dynamics to develop it. And by last accounts, it still hadn't gotten far off the ground as of last year.
 
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And yet Microsoft fans will still advocate they buy companies like Sega or insist they should try to force Nintendo to sell. It's painfully clear MS is cancerous to the industry as a whole.
 
Lugia667 said:
we really have come full circle, this was when Mikami met with Microsoft during Re4 development
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A Nintendo exclusives for... About a 4-9 months

But his point stand true, Microsoft has a identity crisis, Sony has big AAA story driven titles, Nintendo has games meant for everyone, Meanwhile Xbox has nothing, the 360 was the platform meant for hardcore gamers, but now their like headless chicken.

Ironically Nintendo somehow Killed Xbox identity, because of the Wii success, which made Xbox to a 180, to soley focus on casual gamers with the Kinect and that's why we got the Xbox One reveal.
 
Sigh. Hope those affected get a job back, soon.

But Tango is so strange. Feels a bit out of left field. But with Mikami leaving last year I had my suspicions
 
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First MS was like:
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And then:

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Edit: hmmm seem to be only thumbnails... I guess ImgBB sucks nowadays too for image uploads
 
I was not cheerleading MS's purchase of either ZeniMax or ABK, but I will admit that I had not considered the angle in which Microsoft purchased these companies and then Xbox began to collapse under their weight.
 
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Does anyone believe games like Perfect Dark and Everwild are ever gonna release at this point? Witnessing the collapse of Microsoft as a first party is just depressing
 
god bro that fucking indiana jones game is gonna come out and bomb harder than the movies and then theyre gonna shut down machine games before they get to make a wolfenstein 3 fuck this stupid shit man
 
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Lord Azrael said:
I think they DID value those kinds of games because of Game Pass, but then Game Pass stagnated and even retracted, as far as we know from reports. So they've probably deemed those efforts a failure internally, and will try to position Call of Duty as their selling point going forward instead
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So it is. The decision really only starts to makes sense if the strategic goal is indeed to move away from of the hardware business and being a platform holder - not just in terms of as a traditional console maker, but even if you see Game Pass as a platform that can be put on different devices of one's own or another company's making - and focus all efforts on becoming the biggest third party publisher in the industry.

Like Xbox didn't eat up Bethesda and Activision-Blizzard-King so much as Activision-Blizzard-King-Bethesda is gonna eat up Xbox.
 
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Well thank goodness we don't have to worry about Toys for Bob.

Unbelievable that you can give it your all and put out a critical hit, and then proceed to get shut down at the drop of a hat.
 
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Lord Azrael said:
Does anyone believe games like Perfect Dark and Everwild are ever gonna release at this point? Witnessing the collapse of Microsoft as a first party is just depressing
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I think we'll see Everwild. Perfect Dark not so much. But I wouldn't have predicted Tango getting shut down until this morning...
 
Lugia667 said:
apparently Grubb just said on his podcast that Perfect Dark is in a really rough state atm
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Shame. One of the few games outside of the usual suspects (Gears/Halo/Forza) that I was looking forward to from the XBOX crew. Series S is likely gonna be my last Microsoft console unless they turn things around in a major Wii U to Switch kind of way.
 
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Words cannot describe how bummed I am about this. Layoffs like this are never good, but ESPECIALLY with Tango Gameworks, what the hell did they do? Critical acclaim from being one of the only Microsoft games in the past decade to get awards isn't enough? Their one japanese studio, the area Microsoft struggled with the most, was constantly knocking things out of the park, and performing well, and they just shutter them?

I know Redfall being set up for failure probably killed Arkane Austin, but Tango Gameworks wasn't even set up at all! It really feels like they were killed for no reason. This fucking sucks, I hope the talented people from all these studios continue to get work because none of them deserved this. At least let this serve as a reminder to play Hi-Fi Rush.
 
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Hailinel said:
Last we saw, Everwild was still in the "vibes" stage and not actually a game with a defined direction.
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Yeah, but we at least know who is working on Everwild (most notably Gregg Mayles) and have seen some visuals of it. I don't think we know literally anything about PD.
 
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