In a week that saw Microsoft give Activision the reins to Halo, one thing has become abundantly clear: the people in charge have a long-term overriding plan.
Asha, Booty, etc. have clearly worked on it for months, and it is the most reasonable rational plan for fixing a business with poor margins, which is eliminating the sources of poor margins.
Those sources include IP that are not selling to their potential and studios that take too long to produce games or cost too much relative to their output.
It looks like this:
Step 1 - Eliminate studios that cost more than the revenue they bring in.
This was partially executed in June, further executed now, and will continue to be executed in coming months.
These processes take time. You do not wake up one morning and suddenly do layoffs. What we see this week clearly took 3+ months of deep planning and coordination between studio leadership, HR departments, discussions with the MS board, etc.
Step 2 - Attach IP with potential to the best caretakers within the group.
I have seen very dumb takes from analysts saying "Why bother with Halo at all" but this is wrong as well. Just because an IP has been on the ropes due to bad dev for a decade does not mean it cannot come back.
Step 3 - Continue to optimize and adjust strategy based on market reaction and feedback, particularly given that the fruits of the decisions being made now will take years to grow.
This plan has been telegraphed by the Xbox leadership team for months. It has even been communicated externally with smartly written blog posts. It is being executed by that leadership team on reasonable timelines.
All decisions made are both correct and clearly being done with intent.
No one is "just reacting." Implying otherwise is disingenuous.
If the workers quoted below do not understand this plan, they should leave. Xbox will be better off for it.
in a week that saw microsoft give activision the reins to halo and bungie pivot back to destiny, one thing has become abundantly clear: the people in charge do not have a long-term, overriding plan. they’re just reacting. the result, when times are bad, is chaos