Last week the world of video games was shaken by the news of Microsoft’s massive layoffs, which also hit the Xbox division.
The echo of the news is obviously continuing while other details are discovered and we reflect on the conditions that led to this worrying situation for Xbox. Among these there could also be the massive acquisition of Activision-Blizzard.
The pressure on the economic results of the Xbox division has reached such high levels that, according to some analysts (through WCCFTECH), have become problematic for long -term sustainability.
Jez Corden by Windows Central raised a fuss through social media, revealing that Amy Hood, Chief Financial Officer of Microsoft, would have imposed financial objectives considered “completely unrealistic” to the Xbox objectives by several insiders.
According to what emerged from the declarations of the insider, these economic requests would represent the main cause behind the difficulties that continue to hit the Microsoft gaming sector, suggesting that the problems are far from solved.
The discussion quickly involved other experts in the sector, including Tom Warren from The Verge, who offered a different perspective on the matter.
Warren ha sottolineato come questi requisiti finanziari rappresentino semplicemente «la nuova realtà del business Xbox» dopo l’acquisizione di Activision Blizzard, evidenziando che senza questo accordo i ricavi della divisione sarebbero in calo e che la strategia basata su Game Pass non ha ancora prodotto i risultati sperati.
In essence, the annexation of all the intellectual properties of Activision-Blizzard would have greatly raised Xbox’s objectives to the point that, in the current state of the market, they became impossible to achieve without further cuts.
The hypothesis is very plausible but remains such, therefore it will be interesting to have confirmations from the Xbox managers who, honestly, is very difficult for it to arrive.
Among the suspects there is also Game Pass, the subscription service that perhaps begins to be no longer a sustainable service.