Microsoft recently hosted the Xbox Games Showcase to give players a glimpse into what the Xbox and its first-party studios are working on. Gamers got plenty of new announcements, but also a hint that some studios might shut down soon. This is just speculation, as Phil Spencer, the CEO of Microsoft Gaming, has used similar words in the past right before the shutdown of some notable studios.
Xbox and its first-party studios have a lot of projects lined up, so they have to make some tradeoffs in order to make it a “sustainable business.” Almost every major studio is adopting a sustainable model, because most AAA titles are struggling to meet their sales targets, resulting in low revenue and shut down of studios.
Phil Spencer might have hinted at another studio shutdown
During the recent Xbox Games Showcase event, Phil Spencer highlighted the challenges of running a good, sustainable business. On the official Xbox podcast, Spencer dropped a hint that some studios under Xbox’s belt might shut down soon.
We’re accountable to Microsoft for running a good business – a healthy business that continues to grow at both top line and bottom line. That’s kind of a foundation for us. And what that does is it allows us to continue to invest in Xbox for our community of players and creators, and that we’re doing. It does mean we have to make tradeoffs through the year on things that we’re going to invest more in. [And] things that we’re not going to invest as much in, because we are the business that we are.
The console wars took a shocking turn as Xbox has now shared some of its exclusive AAA titles with Sony. Many believe that this is just an attempt to generate more revenue, a move that is a part of Xbox’s sustainable business model.
However, this move also benefits Xbox’s first-party studios as its games can now reach a wider audience and generate more revenue, keeping the company afloat.
Phil Spencer used similar words before the shutdown of two notable studios
This statement raises red flags because Spencer has used similar words in the past to justify the shutdown of two studios: Arkane Austin and Tango Gameworks. Krafton swooped in to save Tango Gameworks, but many talented developers still lost their jobs. Despite Krafton’s ownership, Tango Gameworks still has a strategic partnership with Microsoft, as the giant still has rights to franchises like The Evil Within and Ghostwire: Tokyo.
Xbox is taking this “sustainable business” idea way too seriously, to the point where it has infuriated Xbox fanboys. Some fans hate the fact that Xbox has been sharing some of its beloved IPs with Sony, but in return, they are getting nothing. This might be just the beginning, as rumors suggest Microsoft might share the Halo franchise with Sony soon.
Xbox’s Game Pass undoubtedly has the best video game collection, and the day-one release of some AAA titles just makes it better than the PS Plus Game Catalog. For now, Microsoft has taken the lead, but the console war isn’t over yet.
This post belongs to FandomWire and first appeared on FandomWire
