While Sony is avoiding any cuts to its games division, Microsoft is taking a very different approach. Details are still trickling in, but it appears significant changes are being made to Microsoft's Entertainment and Devices (E&D) division as part of the previously announced plans to axe 5,000 jobs. ZDnet's Mary Jo Foley has heard the E&D division will represent "the bulk" of Microsoft's immediate cuts.
Already, one of their internal studios, ACES, is confirmed shut down. The studio was responsible for the Flight Simulator series. Dean Takahashi from Venture Beat has also learned that 30 percent of the company's video game testers have been laid off. It appears this may be just the beginning of a larger shakedown for the Xbox and PC gaming parts of Microsoft. Takahashi also notes that "the game group is expected to undergo a management restructuring" next week.
Microsoft has yet to release an official comment. Stay tuned as we'll keep a close eye on this situation.
[Via GameDaily]
Reader Comments (75)
Posted: Jan 23rd 2009 2:17PM Professor Lario said
@AoE - those guys are probably the MOST hardcore out there. I mean, I couldn't fly a Cessna around the skies for hours on end...
Reply
Posted: Jan 23rd 2009 4:37PM sk8monroe81 said
they are laying off ms EMPLOYEE testers...
im sure they will hire INDEPENDANT CONTRACT testers whenever they need something tested...
getting rid of employees for contractors saves a company a great deal of money and also means you are only paying somebody when needed.
do u really think ms will not have testers because of this?? lol..
Reply
im sure they will hire INDEPENDANT CONTRACT testers whenever they need something tested...
getting rid of employees for contractors saves a company a great deal of money and also means you are only paying somebody when needed.
do u really think ms will not have testers because of this?? lol..
Posted: Jan 23rd 2009 4:48PM (Unverified) said
@sk8monroe81
"do u really think ms will not have testers because of this?? lol.."
What makes you think they tested anything to begin with? You really think they tested the 360 and thought it was good to go?
Reply
"do u really think ms will not have testers because of this?? lol.."
What makes you think they tested anything to begin with? You really think they tested the 360 and thought it was good to go?
Posted: Jan 23rd 2009 5:05PM sk8monroe81 said
gotenks- that was a good one with some truth... lol..
but wouldnt you think that they have done an OK job of testing all of their software and online support??
not speaking of hardware at all.
IMO MS has done a good job of making sure games are pretty much done when released.
what can we call the sony approval of the socom release in october??
Reply
but wouldnt you think that they have done an OK job of testing all of their software and online support??
not speaking of hardware at all.
IMO MS has done a good job of making sure games are pretty much done when released.
what can we call the sony approval of the socom release in october??
Posted: Jan 23rd 2009 5:07PM sk8monroe81 said
ms has done a better job of testing and making software, while sony has done a better job of testing and making hardware.
when did ms have to pull a firmware update from xbox live before? never.
shouldnt we know this stuff by now.
ms=software
sony=hardware
Reply
when did ms have to pull a firmware update from xbox live before? never.
shouldnt we know this stuff by now.
ms=software
sony=hardware
Posted: Jan 23rd 2009 1:29PM (Unverified) said
As long as the 360 staff are fine I'm fine, I don't really play games on PC (except for games from the 80's and 90's).
Reply
Posted: Jan 23rd 2009 1:37PM Haggard said
Microsoft don't really have much to do with PC games anyway (aside from making sure they work with the Windows platform, but that's a different division altogether).
They don't develop many PC games themselves except ports of first-party 360 games, and even the 'Games for Windows' branding is mostly just a sticker that third parties can pay to put on their boxes.
Reply
They don't develop many PC games themselves except ports of first-party 360 games, and even the 'Games for Windows' branding is mostly just a sticker that third parties can pay to put on their boxes.
Posted: Jan 23rd 2009 2:37PM HighFiveJesus said
are you gonna throw another party since sony's gaming lay offs couldn't have been that big of a hit? you got more to work with this time!
Reply
Posted: Jan 23rd 2009 2:49PM Da Largest said
I do agree with ya, Alien Lord, in that I'm not much of a PC gamer anymore. There are still plenty of 'em out there, though, so if this doesn't effect the 360, that's just bad news for another audience.
oh, and, uh lol@alien lord
"Sony layoffs don't effect gaming sector"
THEYRE GONNA FAIL FOLKS, ITS THE NEXT SEGA
"Microsoft makes cuts to gaming"
Eh.
Reply
oh, and, uh lol@alien lord
"Sony layoffs don't effect gaming sector"
THEYRE GONNA FAIL FOLKS, ITS THE NEXT SEGA
"Microsoft makes cuts to gaming"
Eh.
Posted: Jan 23rd 2009 3:21PM Levi said
Troll, whether Playstation brand fails or not, they are no Sega. Sega failed so much faster and harder than PS3 is. Sega is a games-only company, while Sony is not. If the Dreamcadt failed, the company failed, whereas if the PS3 fails, Sony can wait it out to see if the can get their head above water.
Sony may be losing money right now, but it doesn't mean Playsations are doomed to fail, and they are CERTAINLY not comparable to Sega at this point.
Reply
Sony may be losing money right now, but it doesn't mean Playsations are doomed to fail, and they are CERTAINLY not comparable to Sega at this point.
Posted: Jan 23rd 2009 3:49PM (Unverified) said
@Levi
I wouldn't compare the Playstation to the Dreamcast either. The Dreamcast had an awesome selection of games, fans that weren't fanboys, and developers that loved making games for it. The PS3 has... well, the opposite.
Reply
I wouldn't compare the Playstation to the Dreamcast either. The Dreamcast had an awesome selection of games, fans that weren't fanboys, and developers that loved making games for it. The PS3 has... well, the opposite.
Posted: Jan 23rd 2009 5:34PM Zertoss said
Uh oh, I got voted down. I guess I'd better explain myself!
DirectX is a set of APIs designed specifically for multimedia applications, especially game development and video. DirectX is part of Windows, Xbox and Xbox 360, so building a game for DirectX doesn't necessarily make your game Windows-compatible.
Likewise, ignoring DirectX doesn't necessarily make your game incompatible with Windows. OpenGL is also an option for game development (albeit antiquated) that will run fine on Windows.
So Microsoft has been doing more for PC gaming than just ensuring compatibility with Windows.
Reply
DirectX is a set of APIs designed specifically for multimedia applications, especially game development and video. DirectX is part of Windows, Xbox and Xbox 360, so building a game for DirectX doesn't necessarily make your game Windows-compatible.
Likewise, ignoring DirectX doesn't necessarily make your game incompatible with Windows. OpenGL is also an option for game development (albeit antiquated) that will run fine on Windows.
So Microsoft has been doing more for PC gaming than just ensuring compatibility with Windows.
Posted: Jan 23rd 2009 1:40PM Shagittarius said
Considering the failure rate of the 360 I'd say they got off easy.
Reply
Posted: Jan 23rd 2009 1:40PM PoisonedAl said
The have testers? I thought they got us to test their crap and patched it when they felt like it.
Clearly nothing of value was lost.
Reply
Clearly nothing of value was lost.
Posted: Jan 23rd 2009 1:50PM (Unverified) said
They were good no doubt on that but they never were all that popular except for a few people like me.
Also that this gen is more focused into FPS and people no longer care about sims and other genera.
For example look at Alien Lord the only way you get guys like him playing these sorts of games is that you put a Halo disguise on them, call it Halo Banshee/Hornet Simulator and dumb down everything. Oh yeah and add some sort of rank system so they can feel special.
Reply
Also that this gen is more focused into FPS and people no longer care about sims and other genera.
For example look at Alien Lord the only way you get guys like him playing these sorts of games is that you put a Halo disguise on them, call it Halo Banshee/Hornet Simulator and dumb down everything. Oh yeah and add some sort of rank system so they can feel special.
Posted: Jan 23rd 2009 1:43PM (Unverified) said
"The studio was responsible for the Flight Simulator series"
NOOOOOOOOOOOO!!!! Not them.
Reply
NOOOOOOOOOOOO!!!! Not them.
Posted: Jan 23rd 2009 1:44PM quadrunner said
I pressume those testers did their work on both sides (PC and XBOX). Once again I have to say that I feel bad about those who have lost their jobs. Microsoft instead of wasting money on insame Marketing for Windows Vista and stupid amouts of money you spend to get Exclusives n the XBOX 360 you should spend it on your employees instead.
Reply
Posted: Jan 23rd 2009 1:47PM tracer bullet said
The first computer my family bought came with, along other software, Flight Simulator. Thus, it was my introduction to playing on the PC.
So, thanks for everything. It's a pity to see the industry on such situation
Reply
So, thanks for everything. It's a pity to see the industry on such situation
Posted: Jan 23rd 2009 2:06PM (Unverified) said
I think you are looking for FFFFFFFFFFFFFUUUUUUUUUUUUUCCCCCKKKKKKK!!!!
Also try SSSHHIIIIIIT WAAAFFFLEEEESSS!!!
Reply
Also try SSSHHIIIIIIT WAAAFFFLEEEESSS!!!
Posted: Jan 23rd 2009 1:56PM SheppyReturns said
Considering the rapid reduction in first party studios they've been going through, is this REALLY a suprise to anyone? Even if they just turn exclusively publisher, it would still be a very small shift from their current 360 lineup anyway.
That said, sucks to work at any of those studios. Especially with the rapid closures but I knew several people at Microsoft already making "escape plans" so it's not like it would be a suprise.
Reply
That said, sucks to work at any of those studios. Especially with the rapid closures but I knew several people at Microsoft already making "escape plans" so it's not like it would be a suprise.
Posted: Jan 23rd 2009 1:58PM (Unverified) said
Sorry for those people that lost their jobs......
but where are the people that Said MS wasnt Hurting because they have Billions in Revenue and the other divisions can pick up the slack??? "$4 Billion on the original Xbox was NOTHING"..."The 360 has been profitable since early '08, they've made that back already, and if they didnt MS has BILLIONS in Profit, so they arent losing anything at all!!"
I bet some of those people are headed STRAIGHT to Nintendo....weak economy or not....they print their own money...
Reply
but where are the people that Said MS wasnt Hurting because they have Billions in Revenue and the other divisions can pick up the slack??? "$4 Billion on the original Xbox was NOTHING"..."The 360 has been profitable since early '08, they've made that back already, and if they didnt MS has BILLIONS in Profit, so they arent losing anything at all!!"
I bet some of those people are headed STRAIGHT to Nintendo....weak economy or not....they print their own money...
Posted: Jan 23rd 2009 2:20PM Duke said
Your comments that a loss in another fiscal year that WERE covered by profits in other divisions, somehow have to be paid back now or magically equal a loss in the XBox division this year continues to make no sense.
I was one of the people that said you were wrong before and I'm sticking by it. MS is having losses THIS year in some divisions and is reacting. You may think that you can 'fanboy' this news so as to change the facts presented in their financial reports, but it still doesn't mean you're right. One fiscal year is different than another. Give up on arguing the previous losses as if there is a debt to be paid back for them. Current MS losses are being reacted to across the company.
Reply
I was one of the people that said you were wrong before and I'm sticking by it. MS is having losses THIS year in some divisions and is reacting. You may think that you can 'fanboy' this news so as to change the facts presented in their financial reports, but it still doesn't mean you're right. One fiscal year is different than another. Give up on arguing the previous losses as if there is a debt to be paid back for them. Current MS losses are being reacted to across the company.
Posted: Jan 23rd 2009 2:26PM (Unverified) said
so you are going to sit there and tell me that $4 biilion lost in the division 3 years ago isnt still adding up???? da fuck are you smoking......has nothing to do with "fanboyism"
Reply
Posted: Jan 23rd 2009 2:30PM KingJD said
Who didn't see this coming? They closed a few game studios at the end of last year, bungie is gone so why would they keep the majority of their game testers?
taken from this post on joystiq
http://www.joystiq.com/category/business/
that linked to this article
http://money.cnn.com/2009/01/22/technology/microsoft_jobs/
"Economic activity slowed beyond our expectations in the quarter, and we acted quickly to reduce our cost structure and mitigate its impact," said Chris Liddell, Microsoft's chief financial officer, on a conference call. "We are planning for economic uncertainty to continue through the remainder of the fiscal year, almost certainly leading to lower revenue and earnings for the second half relative to the previous year."
Basically they are saying that they are cutting these jobs to help save money in preparation for an expected weaker fiscal year and not because they are in the red like your precious Sony.
Well, maybe if you backed up and pulled Sony's balls from over your eyes for a few minutes you can read the article as well.
Reply
taken from this post on joystiq
http://www.joystiq.com/category/business/
that linked to this article
http://money.cnn.com/2009/01/22/technology/microsoft_jobs/
"Economic activity slowed beyond our expectations in the quarter, and we acted quickly to reduce our cost structure and mitigate its impact," said Chris Liddell, Microsoft's chief financial officer, on a conference call. "We are planning for economic uncertainty to continue through the remainder of the fiscal year, almost certainly leading to lower revenue and earnings for the second half relative to the previous year."
Basically they are saying that they are cutting these jobs to help save money in preparation for an expected weaker fiscal year and not because they are in the red like your precious Sony.
Well, maybe if you backed up and pulled Sony's balls from over your eyes for a few minutes you can read the article as well.
Posted: Jan 23rd 2009 2:46PM (Unverified) said
I read the article.....and the point is not that they are LOSING this year.....but that they are AFRAID of losing money so they are cutting MORE corners(this time those that hold employees) in order to prevent from losing more money.....when in reality if they would stop spending hundreds of millions for vista promotions, Exclusive DLC, and others they would have money to pay these people for at least another 6 months to a year instead of letting them go.......
"pull Sony's balls from my eyes..." funny....and would be even MORE true if I like Sony for anything other than PlayStation.....
Reply
"pull Sony's balls from my eyes..." funny....and would be even MORE true if I like Sony for anything other than PlayStation.....
Posted: Jan 23rd 2009 2:55PM Johnnynumber5 is powered by cell said
The X-Box division hasn't been profitable since it's inception. The reason they combined the x-box, zune and entertainment division into the Entertainment and Devices (E&D) division was to pad the staggering losses. Just because you write all your losses off in one financial quarter doesn't mean they don't have a lasting effect on the company.
I have been saying for a while now that MS & Sony's business strategy were flawed and that it would eventually catch up to MS like it has Sony. They may have billions of dollars to piss away on marketshare but eventually somethings got to give for them. Steve Ballmer was recently quoted as saying the "X-Box is a funny project because it doesn't actually turn a profit".
They may not have to recoup losses they had already written off like it's some sort of a corporate loan/debt but it does have a big impact on their longevity in the console business. Why on Earth would they continue to stay in the business if in the end they are losing billions each go around?
Maybe they have some sort of a plan for next generation to introduce hardware that actually turns a profit ala Nintendo.
I think Google is positioning itself to take down Microsoft as the worlds leader in software. They already have some integration into the PS3, released a fully featured web-browser, recently released a cell phone O/S to rival WinMo, have a free suite of office tools that are equal to MS Office, the most powerful search engine on the planet & tons of other initiaves and collaborations. My smart money is that Google will eventually release a fully intergrated and interconnected free to liscense operating system. If Sony were playing things amrt they would want to align themselves with Google as much as possible and have as much of their software available within the PS3's XMB. For example, Google Earth, Google Sky, Mail and all the google works suite intergrated so as not to have to save files online but rather to the HDD.
Reply
I have been saying for a while now that MS & Sony's business strategy were flawed and that it would eventually catch up to MS like it has Sony. They may have billions of dollars to piss away on marketshare but eventually somethings got to give for them. Steve Ballmer was recently quoted as saying the "X-Box is a funny project because it doesn't actually turn a profit".
They may not have to recoup losses they had already written off like it's some sort of a corporate loan/debt but it does have a big impact on their longevity in the console business. Why on Earth would they continue to stay in the business if in the end they are losing billions each go around?
Maybe they have some sort of a plan for next generation to introduce hardware that actually turns a profit ala Nintendo.
I think Google is positioning itself to take down Microsoft as the worlds leader in software. They already have some integration into the PS3, released a fully featured web-browser, recently released a cell phone O/S to rival WinMo, have a free suite of office tools that are equal to MS Office, the most powerful search engine on the planet & tons of other initiaves and collaborations. My smart money is that Google will eventually release a fully intergrated and interconnected free to liscense operating system. If Sony were playing things amrt they would want to align themselves with Google as much as possible and have as much of their software available within the PS3's XMB. For example, Google Earth, Google Sky, Mail and all the google works suite intergrated so as not to have to save files online but rather to the HDD.
Posted: Jan 23rd 2009 3:11PM Johnnynumber5 is powered by cell said
http://blogs.computerworld.com/microsoft_beware_will_a_google_os_power_netbooks
My point is that I think MS is going to have it's hands full when their next operating system releases. We have seen the public outcry against the pretty to look at awful to use OS that is Windows vista.
They have had to run a hundred million dollar Mojave ad campaign to show people what Vista is capable of because it's to hard to figure out.
They have also had to run a "I am PC" ad campaign to counteract the positive press Apple has generated from it's successful anti Vista campaign. Apple has carved out a niche with a more reliable OS and more elegant hardware. Mac's are easier to use and have far less issues than Vista based PC's - from my experience. The premium price tag is worth it when the O/S is better served to use the available components.
Microsoft has always been able to rest on it's Windows laurels but those days could be changing sooner than anyone thinks.
I think people are ready for a change in computer operating systems. A next generation leap so to speak. MS better give people something that is not a performance hog like Vista but introduces new features that changes the way we think about computers.
Reply
My point is that I think MS is going to have it's hands full when their next operating system releases. We have seen the public outcry against the pretty to look at awful to use OS that is Windows vista.
They have had to run a hundred million dollar Mojave ad campaign to show people what Vista is capable of because it's to hard to figure out.
They have also had to run a "I am PC" ad campaign to counteract the positive press Apple has generated from it's successful anti Vista campaign. Apple has carved out a niche with a more reliable OS and more elegant hardware. Mac's are easier to use and have far less issues than Vista based PC's - from my experience. The premium price tag is worth it when the O/S is better served to use the available components.
Microsoft has always been able to rest on it's Windows laurels but those days could be changing sooner than anyone thinks.
I think people are ready for a change in computer operating systems. A next generation leap so to speak. MS better give people something that is not a performance hog like Vista but introduces new features that changes the way we think about computers.
Posted: Jan 23rd 2009 3:58PM Mr Khan said
I still don't understand how that Apple "I'm a Mac" campaign succeeded. In my case, it gave me a borderline hatred of Apple, despite the fact that the company is certainly on higher moral ground than Microsoft
Certainly it prompts me to point out Apple's single-digit market share pretty much every time one of those damn commercials comes on
Reply
Certainly it prompts me to point out Apple's single-digit market share pretty much every time one of those damn commercials comes on
Posted: Jan 23rd 2009 4:13PM (Unverified) said
thats True Khan....but at the very least it cause a FEW more people to buy Mac and in the long run helped damage the public perception of Windows....
Reply
Posted: Jan 23rd 2009 2:10PM 343 Guilty Fart said
Aren't testers usually contract workers anyways? I know they are at EA and Sony. Or does MS use full-time with benefits testers?
Reply
Sorry, you must be logged in to leave a comment.
Featured Stories
The most popular posts
in the last 7 days
- Vita 'UMD Passport' won't be offered in US 220 comments
- Kingdoms of Amalur: Reckoning review: A tempting fate 153 comments
- David Jaffe leaves Eat Sleep Play, layoffs hit developer [Update] 107 comments
- Don't call it a remake: Final Fantasy X is a 'remaster,' to be clear 95 comments
- Battleship movie adapted into FPS by Double Helix 93 comments











