With the cancellation of Scalebound, we have the third instance this gen of Microsoft cancelling a third party game because it didn't make expectations, leaving the developer in a poor situation.
First we had Obsidian's Stormlands, which was
cancelled after seven months of development, leaving Obsidian in a state of near ruin, at which point they had to lay off 30 people, go to Kickstarter, start work on a f2p game, and
turn the remnants of that game into Tyranny.
Then we have
the infamous Phantom Dust debacle. I'll just leave some choice quotes here:
The end result is that Darkside went out of business.
Then we have Scalebound, which according to several sources involved Microsoft setting very high milestones and withholding pay
And as a result a significant portion of Platinum workers are without a task, Kamiya on mental health leave, and the studio bereft of payment for a month of work.
We also have Fable Legends, though that was a first party game so not sure how that fits in here.
So, overall, if this were just one developer and one set of rumors, maybe it would be some bad apples and conjecture. But this same pattern has happened several times with them, which begs the question, is it all bad third party relations, or perhaps some sort of mismanagement from Microsoft? I don't wanna be all "doom and gloom" but can this be really attributed to a series of coincidences and bad partnerships? Even then, isn't it still on them making those partnerships?
My presumption is that Microsoft perhaps underestimated the effort it would take to get games with as-a-service multiplayer (which seems to be their big push with all the full priced titles with pay2win microtransactions) that also has a AAA grade campaign out of smaller studios with newer IPs. They tried their luck at getting these projects at a low cost, but then as management and goals changed (a lot of these projects must have started during Mattrick and Ballmer's era and shifted to Spencer and Nadella) they no longer were interested in that kind of investment for that kind of project. Presumably not wanting to back out of contracts, they just used increasingly high demands on developers to burn them out and make them drop the contracts instead, taking the damage with them. Is this an unfair characterization of the situation?
Given an attitude like this towards new AAA IP, it seems it would be difficult for them to grow new IPs in this climate without investing significantly. Perhaps this signals a change in philosophy in Microsoft?
I'd like to discuss these subjects without being bogged down by the specifics of the individual games, as there's threads for those. This seeming strategy change and possibility of mismanagement (or arguments against it) are the specific points I'd like to speculate on.