Microsoft abandons original programming plans, will shut down Xbox Entertainment Studios

[Shawn Knight]

As part of Microsoft's massive workforce reduction announced earlier today, the Redmond-based company is also streamlining a handful of portfolio and engineering development efforts across its Xbox team.

One such casualty is Xbox Entertainment Studios, a division created in 2012 dedicated to producing original programming for Xbox Live. According to an internal memo from recently-appointed Xbox chief Phil Spencer, it'll be shut down in the coming months.

The first piece of original content, a soccer-themed interactive mini-series called Every Street United, debuted last month under the Xbox Originals banner. At the time, Microsoft committed to a dozen projects but given today's news, it's unlikely that most of those will ever see the light of day.

Spencer did, however, confirm that a few projects already in production will continue as planned. These include a documentary series called Signal to Noise whose first episode will cover the rise and fall of Atari as well as Halo: Nightfall and the live-action Halo television series. The latter is being produced by Steven Spielberg with help from 343 Industries.

One has to wonder how this change will affect the overall strategy behind the Xbox One, a device that was initially marketed as more of an entertainment hub than a hardcore game console. That decision certainly ruffled the feathers of some but we're curious to hear what you think.

Do you believe Microsoft is making the right decision by shifting the Xbox One back to a gaming-first device?

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https://www.techspot.com/news/57449-microsoft-abandons-original-programming-plans-will-shut-down-xbox-entertainment-studios.html

 

[Guest]

Whats the point of getting an XBone then. They would understand why content is important if steam pulled out of Windows. Imagine Half-life 3 for non windows only.

 

[WangDangDoodle]

It's a little late to be taking the Xbone back to the drawing board, but that's not gonna stop Microsoft from trying. I'm not intimately familiar with the more advanced workings of this console, but I do remember something about the Xbone reserving system resources for the Kinect and such. The PS4 is so obviously a superior gaming system, and I think Microsoft is doing everything they can to close the gap now. I don't know how much they can do just by updating the software, though.

 

[davislane1]

This is further evidence supporting my theory that Microsoft's E3 showing had a lot more to it than simply games.

 

[Guest]

Other than the unfortunate human cost, I'm happy with this decision. Xbox is still an entertainment hub, without Microsoft's original programming, with TV, Netflix, Hulu, twitch, youtube, NFL, NHL, bluray, Xbox music and video, etc. To me the original programming was always an interesting experiment, but not the reason I bought the console.

 

[Skidmarksdeluxe]

I still think the best thing MS can do is to dump the entire XBox division, let some other company take it over then they can concentrate more on their core products.

 

[WangDangDoodle]

I still think the best thing MS can do is to dump the entire XBox division, let some other company take it over then they can concentrate more on their core products.

Word.

 

[Jad Chaar]

I still think the best thing MS can do is to dump the entire XBox division, let some other company take it over then they can concentrate more on their core products.

I wish they did that to; BUT, it is currently a huge money maker for them.

 

[Skidmarksdeluxe]

I wish they did that to; BUT, it is currently a huge money maker for them.

It's not really as big as you think it is. Most of the money comes from games and not the console, in fact the hardware operates at a loss.

 

[Guest]

Why? Do you think it is coincidence that Apple, Android, etc. have been developing advance GPU APIs, more powerful mobile devices, partnerships with gaming companies and entertainment media houses?

Office software products while great, have become a commodity. There are plenty of alternative options Microsoft Office products. The next battlefield is analytic data for an increasing mobile workforce.

Apple crushed everyone by outselling the entire retail division in the US with just two multimedia entertainment devices (iPhone and iPad). As soon as these devices become more robust gaming and enterprise capable devices, it's a wrap!

Hence the reason Microsoft is restructuring and focusing on mobile computing and the cloud.

 

[Jad Chaar]

It's not really as big as you think it is. Most of the money comes from games and not the console, in fact the hardware operates at a loss.

Wow really. I didn't know that! (no sarcasm in that BTW)

 

[Railman]

Why? Do you think it is coincidence that Apple, Android, etc. have been developing advance GPU APIs, more powerful mobile devices, partnerships with gaming companies and entertainment media houses?

Sure mobile devices will continue to improve but the same goes for PCs etc.

Office software products while great, have become a commodity. There are plenty of alternative options Microsoft Office products. The next battlefield is analytic data for an increasing mobile workforce.

There may be alternatives to the MS Office products but MS is still seen as the de-facto industry standard. Can you name any alternatives that are household names?

Apple crushed everyone by outselling the entire retail division in the US with just two multimedia entertainment devices (iPhone and iPad). As soon as these devices become more robust gaming and enterprise capable devices, it's a wrap!

Don't know why you have come to that conclusion? Apple may well outsell individual competitors but if you lump all the competitors which sell Android devices then Android wins hands down.

Hence the reason Microsoft is restructuring and focusing on mobile computing and the cloud.

MS is restructuring because that is what happens when you have a new boss.

 

[mailpup]

There may be alternatives to the MS Office products but MS is still seen as the de-facto industry standard. Can you name any alternatives that are household names?

I prefer and still use WordPerfect but I know I'm in the overwhelming minority. Probably not a household name these days though.

 

[captaincranky]

It's not really as big as you think it is. Most of the money comes from games and not the console, in fact the hardware operates at a loss.

Wow really. I didn't know that! (no sarcasm in that BTW)

I think most printers are loss leader items, or very close to it. They're sold to get you hooked on the ink cartridges.

Game cartridge, ink cartridge, not much difference in the marketing strategies. The ink cartridges likely have a higher markup than the games.

I buy a printer every year or so at BB on Black Friday. I'm absolutely certain they're well under cost. Then I retire it when it runs out of ink.

Shame that part of my consumer strategy won't work with games....

On a more somber note, layoffs are always tragic. However, I suspect that M$ has plenty of dead wood in their forest of workers. Perhaps most notably, Steve Ballmer.

 

[Jad Chaar]

I think most printers are loss leader items, or very close to it. They're sold to get you hooked on the ink cartridges.

Game cartridge, ink cartridge, not much difference in the marketing strategies. The ink cartridges likely have a higher markup than the games.

I buy a printer every year or so at BB on Black Friday. I'm absolutely certain they're well under cost. Then I retire it when it runs out of ink.

Shame that part of my consumer strategy won't work with games....

On a more somber note, layoffs are always tragic. However, I suspect that M$ has plenty of dead wood in their forest of workers. Perhaps most notably, Steve Ballmer.

Good point. I wonder how much the xbox team gets from developers' game profits.

 

[Skidmarksdeluxe]

I think most printers are loss leader items, or very close to it. They're sold to get you hooked on the ink cartridges.

Game cartridge, ink cartridge, not much difference in the marketing strategies. The ink cartridges likely have a higher markup than the games.

I buy a printer every year or so at BB on Black Friday. I'm absolutely certain they're well under cost. Then I retire it when it runs out of ink.

Shame that part of my consumer strategy won't work with games....

On a more somber note, layoffs are always tragic. However, I suspect that M$ has plenty of dead wood in their forest of workers. Perhaps most notably, Steve Ballmer.

I wouldn't be at all surprised if 9/10th's of the senior management is much more than dead wood, thats where M$ should start pruning first.

 

[Railman]

There may be alternatives to the MS Office products but MS is still seen as the de-facto industry standard. Can you name any alternatives that are household names?

I prefer and still use WordPerfect but I know I'm in the overwhelming minority. Probably not a household name these days though.

I remember Wordperfect so you are not totally alone. Whilst I now use MS Word at work I must confess I preferred using Wordperfect. What was great about it was being able to see the code behind the formatting. It made correcting formatting errors so much easier.

 

[mailpup]

What was great about it was being able to see the code behind the formatting. It made correcting formatting errors so much easier.

Yes, it is the reveal codes feature that makes it so easy to work with the formatting of documents.