The next generation of consoles might be closer than we thought, at least for Xbox fans. Today, Call of Duty leaker TheGhostofHope relayed a rumor from trusted sources that the next Xbox console might launch in late 2026, way earlier than most analysts and fans predicted, with Call of Duty as a launch day title.
Xbox Likely Sees Studio Closures as ‘Eggs Broken to Make Omelet’ Situation; An Impressive Showcase Could Mostly Eclipse Anger, Says Analyst
09.05.2024 - 21:39 / wccftech.com / Alessio Palumbo
The news that Microsoft's Xbox division shuttered three studios and folded a fourth into ZeniMax Online is still ringing throughout the entire games industry at a time when layoffs and studio closures are almost a weekly certainty.
To try and make sense of the shocking announcement, we reached out to our good friends at MIDiA Research. Games Industry Analyst Rhys Elliott kindly answered a few questions, pointing out that the new Xbox vision centered on big IPs required 'breaking a few eggs to make an omelet'. He also reckons an impressive Xbox Games Showcase in June could mostly eclipse fans' anger.
Related Story Xbox Will Reportedly Cut More Jobs, Arkane and Tango Were Pitching New Projects Pre-Closure
Despite the overall Xbox business going up, Microsoft is still axing even respected developers who have made award-winning games. Why do you think that is the case? Should Xbox fans be worried about reduced investment in gaming?
While it’s true that gaming revenue was up +51% and Xbox content/services revenue was up +62% in calendar Q1, these gains mostly came from Microsoft’s Activision Blizzard acquisition. The inorganic acquisition growth actually offset a -5 % drop in gaming revenue, as well as flat Xbox content/services growth for Xbox.
As for the layoff news, there are a few angles to look at it. Xbox was acquiring a bunch of studios during the growth phase of Xbox Game Pass on console and when money was cheap. The days of cheap money are over. Profitability, stability, and efficiency are now in vogue, and interest rates have skyrocketed. Consolidation and cost-savings are the name of the game for big-tech companies now – from Meta and Amazon to Google and Microsoft. This is part of the reason Xbox chose to shutter respected studios that made award-winning games.
What’s more, Game Pass has clearly left its growth phase on console. Content from other studios and the recent Activision Blizzard acquisition – chiefly Call of Duty and Blizzard games – gives Xbox enough content to retain current subscribers while chasing other segments, like mobile.
Xbox is also rather siloed in terms of its studios, and likely looks at their profitability on a case-by-case basis, choosing to let go of studios it sees as a cost—in terms of opportunity and spending.
With the latest news, Xbox's reputation among hardcore gamers (and possibly even among developers) has taken a major hit. The perception is that Microsoft appears to be focusing entirely on short-term ROI (return on investment) for investors instead of building a long-term vision. Do you think the damaged reputation will hurt Xbox in the long run?
Xbox wants to reach 3 billion gamers, so it is refocusing towards bigger, sure-bet franchises that will help them
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