Xbox Reportedly Given “Utterly Unrealistic” Financial Target That Could Continue to Hurt the Division

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The troubles at Xbox may be far from over, as Microsoft’s CFO has set an “utterly unrealistic” financial target for the division that will continue to hurt the company’s gaming division in the future.

Over the weekend, Windows Central’s Jez Corden revealed on X that Microsoft Chief Financial Officer Amy Hood supposedly has given Xbox an utterly unrealistic financial requirement that will continue to hurt the division, suggesting that the troubles that led to the latest waves of layoffs are far from being over. The Verge’s Tom Warren chimed in on the discussion, saying that these requirements are the reality of the Xbox business following the Activision Blizzard acquisition. Without the deal, Tom Warren added, revenue would be down, and the Game Pass gamble hasn’t paid off yet.

Last week’s wave of layoffs at Xbox has been particularly impacftful for a lot of game development studios under the umbrella of Microsoft’s gaming division, such as Forza Motorsport developer Turn 10, which has lost over 70 employees and has reportedly been turned into a Forza Horizon support studio, Rare, whose Everwild project has been canceled, and The Initiative, which was completely shut down following the cancellation of the Perfect Dark series reboot. ZeniMax Online, developer of The Elder Scrolls Online, was also impacted by the cancellation of their next MMORPG, which was reportedly turning out so well that Xbox head Phil Spencer loved the game when he played it back in March. Other partner studios were also heavily impacted by the latest wave of layoffs, such as Romero Games, the studio founded by the DOOM series co-creator John Romero and his wife Branda Romero, which also shut down following the cancellation of the studio’s next FPS.





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