Microsoft’s Xbox Division Faces Financial Hurdles Post-Layoffs – Breaking News
In a recent development, Microsoft’s Xbox division is grappling with financial challenges that seem far from over. The company’s Chief Financial Officer (CFO), Amy Hood, has reportedly set a “completely unrealistic” financial goal for the gaming division, which could continue to impact its future prospects.
Unrealistic Financial Demands
According to reports from industry insiders, including Jez Corden of Windows Central and Tom Warren of The Verge, the financial demands placed on the Xbox division are unprecedented. Jez Corden tweeted that Hood’s demands are “utterly unrealistic” and will continue to “hurt the division.” Tom Warren echoed these sentiments, noting that the financial pressure is a reality for Xbox following the acquisition of Activision Blizzard.
Impact of Recent Layoffs
The recent layoffs within the Xbox division have had a significant impact on several game development studios under Microsoft. For instance, Turn 10 Studios, the developer of “Forza Motorsport,” lost over 70 employees. “Forza Horizon” has reportedly been converted into a support studio. Additionally, Rare’s “Everwild” project was canceled, and the studio responsible for rebooting “Perfect Dark” was closed. Zenimax Online, the developer of “The Elder Scrolls Online,” also faced project cancellations, including a highly praised MMORPG. Romero Games, co-founded by John and Brenda Romero, was shut down, ending their next FPS game project.
Future Outlook for Xbox
The financial strain and project cancellations raise questions about the future of Xbox. Industry experts suggest that without the acquisition of Activision Blizzard, Xbox’s profits would have declined further. The gamble on Game Pass as a growth strategy also remains uncertain. As Microsoft continues to navigate these challenges, the long-term viability of its gaming division is a topic of considerable interest.
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