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Microsoft shutting down Xbox Entertainment Studios (TV studio, 200 employees)

I actually think this is a horrible mistake. Streaming video is a market that is becoming more and more important, as is providing exclusive content through your video services. It sounds like XES needed some restructuring and maybe a leadership change, but to totally shut down what could've been a very promising venture is highly disappointing, in my opinion.

They had literally no plan to monetize the programming they planned. They were spending hundreds of millions on the blind hope exclusive shows would act as some kind of differentiator, but we still have no real idea how most of these shows were going to be released, if you had to buy them, if they came with gold, etc, etc, etc. Hell, I think the plan for the Halo series right now is that it comes with the Master Chief collection, as if people would not have bought it without.

The popularity of Orange is the New Black, House of Cards, and Amazon's pilot initiative show that there's an audience there for exclusive content programming. I don't know if Halo is ever going to be that killer app though. Better to spend the money on games.

Yeah, they love high quality programs they can get on good services that can be accessed from literally any internet connected device in the world. They don't want shows hidden behind a $400 hardware purchase.
 
Their E3 conference wasn't a disaster IMO. Had a similar format to this year's E3 for that matter (just games) but didn't have as much of a quick pace.

E3 wasn't a disaster, but it still had memorable moments. Phil Spencer coming out and saying $499 is just as awful as Kaz Hirai's $599 moment, along with Mattrick saying "well, we got a 360 for those folks without internet". Their message was still what people didn't want, even though they had games on display.
That's why I said that both events will be remembered as a set, which represents the unveiling of the X1, just like how Sony's E3 2006 will be remembered or the Sega Saturn, and to a lesser extent, the first E3 Nintendo talked about the WiiU. Companies just go crazy sometimes, I guess.
 
I actually think this is a horrible mistake. Streaming video is a market that is becoming more and more important, as is providing exclusive content through your video services. It sounds like XES needed some restructuring and maybe a leadership change, but to totally shut down what could've been a very promising venture is highly disappointing, in my opinion.

agreed. Considering Amazon (even Yahoo, I mean: did anyone even knew that existed?) and other players are firing the first shots at open competition on the streaming market with their own shows, it seems like a strange decision to shut off that particular type of content at this point.
Also considering Felicia Day's career build-up basically equals The Guild, which was heavily promoted through the Xbox360 menu.

Though this shutdown has likely no influence on those things, I guess.
 

Tarr

Banned
E3 wasn't a disaster, but it still had memorable moments. Phil Spencer coming out and saying $499 is just as awful as Kaz Hirai's $599 moment, along with Mattrick saying "well, we got a 360 for those folks without internet". Their message was still what people didn't want, even though they had games on display.
That's why I said that both events will be remembered as a set, which represents the unveiling of the X1, just like how Sony's E3 2006 will be remembered or the Sega Saturn, and to a lesser extent, the first E3 Nintendo talked about the WiiU. Companies just go crazy sometimes, I guess.

nope, lol
 

Palocca

Member
Perspectively speaking, I understand your points, but I look at the marketplace right now and what the competitors are doing, I'd be scared shitless at the Netflix, Amazon, the deals that they're making for exclusive content, and most importantly, the pace of which these deals are materialising.

Xbox ED sounds like they'll have one desirable show by the time Netflix and Amazon makes 5 each.

If you can't double-down to make your products competitive, you'll forever be scraping the bottom of the barrel. Even Sony doesn't dare risk its entertainment products to be an 'exclusive' to their streamning service.

I work in Digital Media distribution, and you're pretty much spot on with the climate of streaming VOD right now.

What happened was when Netflix first began their VOD service, distributors were pretty much giving away content for cheap, at the expense of having short terms. As Netflix started to mature and become a legitimate business plan, the majority of the distributors decided to ask for more money for the same content. As a result, Netflix can't afford to have the large library they had before and decided that it would be cheaper to start producing their own shows, as well as broker exclusive deals for premium content. So what you'll start to see in the near future are fragmented libraries from each major player, which is going to suck.
 
The water cooler has been emptied.
UebXWiM.gif
 
Yeah, they love high quality programs they can get on good services that can be accessed from literally any internet connected device in the world. They don't want shows hidden behind a $400 hardware purchase.

Weren't the shows be available for all Xbox Video users, even on other platforms?
 

Metallix87

Member
They had literally no plan to monetize the programming they planned. They were spending hundreds of millions on the blind hope exclusive shows would act as some kind of differentiator, but we still have no real idea how most of these shows were going to be released, if you had to buy them, if they came with gold, etc, etc, etc. Hell, I think the plan for the Halo series right now is that it comes with the Master Chief collection, as if people would not have bought it without.

I think the exclusive programming still works as a solid differentiating element, but I just don't think Microsoft's chosen leader for the division had the right vision. To me, video game licenses and the trash they put out simply isn't the right way to go about things. The direction needed is that of the competition: HBO-esque content. A logical way to monetize it would be to have advertising for third party games at semi-regular intervals during views.

Yeah, they love high quality programs they can get on good services that can be accessed from literally any internet connected device in the world. They don't want shows hidden behind a $400 hardware purchase.

I think access via Xbox Phone and the potential to access via your PC could've offset that, though I'm not sure if Microsoft would have eventually gone down that route.
 

Kuni

Member
Bad times. It always did feel out of place though that TV content as well as not really fleshed out.

Sadly just another big part of the original Xbone reveal now cut to the way side.... How did they get so much so wrong :/

My thoughts are with all the people laid off (18k!). Hope they land safe somewhere else.
 
E3 wasn't a disaster, but it still had memorable moments. Phil Spencer coming out and saying $499 is just as awful as Kaz Hirai's $599 moment, along with Mattrick saying "well, we got a 360 for those folks without internet". Their message was still what people didn't want, even though they had games on display.
That's why I said that both events will be remembered as a set, which represents the unveiling of the X1, just like how Sony's E3 2006 will be remembered or the Sega Saturn, and to a lesser extent, the first E3 Nintendo talked about the WiiU. Companies just go crazy sometimes, I guess.

I don't think it's a coincidence all those events, minus Sega, came after really successful generations for the companies.
 
That's somewhat disappointing. If they continued to make more game-based content like that ET dig it could have been pretty cool.
 

Metallix87

Member
I can't imagine why they would do that. Better to make apps that work across many devices, maybe even non-MS devices. There's a precedent for that now with Office.

It's obvious why they would do that: Windows is a name that basically is meaningless to kids and young adults, while Xbox is a brand they recognize and have connections with. I think a re-branding movement, as well as an initiative to pay for more cross-platform support of apps and games missing on their phones would go a long way.

They need to revolutionise not follow behind again

Not remember the playstation phone?

The market is too crowded

The bubble will eventually pop

Too crowded? There's only three options: iOS, Android, and Windows. The third is trailing behind, and struggling. Switching to a more powerful brand is a good way to gain some momentum. Also, the bubble will not pop, since there is no bubble. People need smart phones, and they only have three options, really, in terms of what OS they want to use.
 

Bgamer90

Banned
E3 wasn't a disaster, but it still had memorable moments. Phil Spencer coming out and saying $499 is just as awful as Kaz Hirai's $599 moment,

Disagree. $599 almost a decade ago was much worse than $499 last year.

along with Mattrick saying "well, we got a 360 for those folks without internet". Their message was still what people didn't want, even though they had games on display.

Now yeah, that was really bad. Definitely agree. That was outside of the conference though.
 

Guevara

Member
It's obvious why they would do that: Windows is a name that basically is meaningless to kids and young adults, while Xbox is a brand they recognize and have connections with. I think a re-branding movement, as well as an initiative to pay for more cross-platform support of apps and games missing on their phones would go a long way.

Personally I don't think Xbox is that powerful a name.

Phones can be great gaming devices, but there's no evidence that a gaming-focused phone would sell well. In fact all the evidence so far (Ngage, Xperia Phone) indicates the opposite.
 

Metallix87

Member
Personally I don't think Xbox is that powerful a name.

Phones can be great gaming devices, but there's no evidence that a gaming-focused phone would sell well. In fact all the evidence so far (Ngage, PS Phone) indicates the opposite.

Nowhere did I say it would be a gaming-focused phone. I said Xbox is a more recognizable brand to the people buying the most smart phones when compared to Windows.

Why not Perfect Dark? People still associate that with the N64.

Why would they sell an IP that perfectly hits their main demographics, and has been used as a system seller by them in the past?
 

brett2

Member
Microsoft has very little to gain from Xbox at this point. It's obvious that it will sell moderately well and make a (relatively) small profit over its lifetime but investing anything more than acquiring a few exclusives per year is just not going to be worth it. There is no way it is going to be a runaway success and "take over the living room" or create any other pie in the sky synergies. Being aggressive an try to move an extra 10 million units over its lifetime will make no negligible difference to the bottom line of a company as big as MS so why bother? Microsoft is going to get desperate over the next few years to develop or acquire a new line of business that can move the needle and the Xbox brand is honestly just a big waste of time for them.
 

Metallix87

Member
Microsoft has very little to gain from Xbox at this point. It's obvious that it will sell moderately well and make a (relatively) small profit over its lifetime but investing anything more than acquiring a few exclusives per year is just not going to be worth it. There is no way it is going to be a runaway success and "take over the living room" or create any other pie in the sky synergies. Being aggressive an try to move an extra 10 million units over its lifetime will make no negligible difference to the bottom line of a company as big as MS so why bother? Microsoft is going to get desperate over the next few years to develop or acquire a new line of business that can move the needle and the Xbox brand is honestly just a big waste of time for them.

I think you're underestimating what can be done with the Xbox brand. As I said, I expect Windows Phone to eventually be re-branded as Xbox Phone, and I'm still confident that, within the next two or three years, Microsoft will announce their own set-top box for streaming, and call it the Xbox TV. THAT is how they will take over the living room.
 

Tarr

Banned
Why would they sell an IP that perfectly hits their main demographics, and has been used as a system seller by them in the past?

Perfect Dark Zero was/is guilty pleasure trash though. That's like them buying the Ryse IP. Why? Both was hyped by MS as launch titles but never really push the console over to that demographic it supposed to hit.
 
I don't think it's a coincidence all those events, minus Sega, came after really successful generations for the companies.

I know it's no coincidence, it was just a small observation :)

Disagree. $599 almost a decade ago was much worse than $499 last year.
Now yeah, that was really bad. Definitely agree. That was outside of the conference though.

To me, anything with a $499 (or above) price tag on the console market is just a completely baffling move which has proven to be a poor decision, with price cuts happening as soon as these companies can afford them.
 
It's obvious why they would do that: Windows is a name that basically is meaningless to kids and young adults, while Xbox is a brand they recognize and have connections with. I think a re-branding movement, as well as an initiative to pay for more cross-platform support of apps and games missing on their phones would go a long way.



Too crowded? There's only three options: iOS, Android, and Windows. The third is trailing behind, and struggling. Switching to a more powerful brand is a good way to gain some momentum. Also, the bubble will not pop, since there is no bubble. People need smart phones, and they only have three options, really, in terms of what OS they want to use.

Lol you are funny

Yes 3 main OS in western territories, but hundreds of different handsets with custom GUIs

And Nokia is a very strong brand

Yes people love smart phones, but there will be a revolution at some point which pushes it towards the next level and the way we use phones

The iphone revolutionised the smart phone and something will come and do something else bigger and better

Technology brother ;)
 

Metallix87

Member
Perfect Dark Zero was/is guilty pleasure trash though. That's like them buying the Ryse IP. Why? Both was hyped by MS as launch titles but never really push the console over to that demographic it supposed to hit.

Perfect Dark Zero was a million seller, and the XBLA Perfect Dark sold well over 400,000 units. Do you think this is bad? Also, the quality of Zero has no bearing on the quality of future entries in the series.
 
I was not expecting this. Sucks for those affected, hope they land on their feet.

I wonder how the people who bought an Xbox One for it's all around value will take this.
 

Metallix87

Member
Lol you are funny

Yes 3 main OS in western territories, but hundreds of different handsets with custom GUIs

And Nokia is a very strong brand

Yes people love smart phones, but there will be a revolution at some point which pushes it towards the next level and the way we use phones

The iphone revolutionised the smart phone and something will come and do something else bigger and better

Technology brother ;)

I'm still not understanding your point. You've just basically given the very reason why Microsoft is still at it.
 

Percy

Banned
Perfect Dark Zero was a million seller, and the XBLA Perfect Dark sold well over 400,000 units. Do you think this is bad? Also, the quality of Zero has no bearing on the quality of future entries in the series.

If it's going to be made by the same people, it kind of does though.
 
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