So Why All The Microsoft Game Group Firings?


Recommended Posts

Microsoft said they were sacking 1,400 people across the entire company, yet a disproportionate number of those cuts fell upon the (relatively) small gaming group. What gives? Did somebody **** in Steve Ballmer's coffee?

In the literal sense, no, but somebody looking at Micosoft's research & development budget may well have exclaimed "oh man, the entertainment & services division is sure ****ing in everybody else's coffee".

spending.jpg

Look at this graph. It shows the R&D spending across the entire company in the six months leading up to December 31, 2008. Now look at the far right. Look how much the entertainment & services division (the Xbox, Games for Windows, Zune & Windows Mobile guys) blew through.

They spent more than the Windows guys! Who were working on Windows 7! And nearly as much as the server & tools crew! This despite the fact the E&D team is small compared to those other two, and contributes bugger-all towards Microsoft's overall bottom line (only $329 million of the company's $6.2 billion).

So if costs needed to be cut, and you were doing the cutting, and you looked at that expenditure, you'd know a good place to start.

Before you all go blaming some mysterious Xbox portable, the rumoured 360 waggle or even the Zune, it's worth noting a fair whack of that increase in spending was due to Microsoft's acquisition of the guys behind T-Mobile's Sidekick. That meant more people working on more R&D, which increased the spending proportionately.

So, there you have it. One good reason (one out of a few) why the axe fell on the E&D group. All that spending with so little return made them the first, and most obvious target for some enforced belt-tightening.

Source: http://kotaku.com/5139904/so-why-all-the-m...e-group-firings

Link to comment
Share on other sites

Well that and the Games For Windows, Zune, Windows Mobile and Xbox division all live udner E&D. Games for Windows seems to have taken the hardest hit, including losing their actual VP, 2 studios (and counting) etc...

Link to comment
Share on other sites

Fewer people is often better, hell, imo MS has too many middle men anyways.

They'll be alright though, I think 2009 will bring us some good stuff in all those areas under E&D.

Link to comment
Share on other sites

I think MS games for windows have been doing really well.

I look at the stack of PC games next to me and almost all of them has the "games for windows" logo.

Strange that they will fire someone so successful.

Link to comment
Share on other sites

I think MS games for windows have been doing really well.

I look at the stack of PC games next to me and almost all of them has the "games for windows" logo.

Strange that they will fire someone so successful.

They were getting hammered by Steam, took for too long for Games For Windows LIVE to get any traction, etc... Too bad as i agree with you, it's a nice marketing program.

Link to comment
Share on other sites

This topic is now closed to further replies.
  • Recently Browsing   0 members

    • No registered users viewing this page.