Microsoft makes cuts to gaming: ACES studio closed, 30% of testers laid off
by Andrew Yoon 
{ Jan 23rd 2009 at 1:26PM } 
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 (Page 1 of 2)
Obie @ Jan 23rd 2009 1:28PM
Testers laid off?? Now we'll never get that L4D patch! :(
Hyams @ Jan 23rd 2009 1:33PM
L4D is made by Valve, not Microsoft.
Obie @ Jan 23rd 2009 1:44PM
No, Duh. Valve made the patch that was sent to MS for "certification". Hence the delay.
Hyams @ Jan 23rd 2009 1:45PM
Oooh. I didn't know that. 0_0
Obie @ Jan 23rd 2009 1:59PM
Yeah, it sucks dude. :(
potato @ Jan 23rd 2009 2:05PM
*sigh* Just what we need... more games that sneak by without testing...
I do agree with axing the Flight Sim team though - I doubt that game has made MS any serious revenue for eons. People simply aren't into physics-perfect simulation games anymore.
AoE @ Jan 23rd 2009 2:07PM
@potato, yeah gamers certainly aren't, but I know it's used in flight instruction schools, and there's also a dedicated enthusiast community. Flight Sim has a strong following... just not among hardcore gamers.
Professor Lario @ Jan 23rd 2009 2:17PM
@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...
sk8monroe81 @ Jan 23rd 2009 4:37PM
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..
Gotenks @ Jan 23rd 2009 4:48PM
@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?
sk8monroe81 @ Jan 23rd 2009 5:05PM
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??
sk8monroe81 @ Jan 23rd 2009 5:07PM
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
Alien Lord @ Jan 23rd 2009 1:29PM
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).
Chin-Poh (I wuv you Yu Yu Hakusho Abridged!) @ Jan 23rd 2009 1:32PM
Microsoft, stop securing exclusive DLC for your console and start securing your employees, that's more important!!!
Haggard @ Jan 23rd 2009 1:37PM
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.
Zertoss @ Jan 23rd 2009 1:51PM
Yeah, it's not like Microsoft has anything to do with DirectX or anything like that.
Oh wait...
Haggard @ Jan 23rd 2009 1:55PM
My first paragraph.
Reading, it helps!
Zertoss @ Jan 23rd 2009 2:00PM
I did read it. What does ensuring compatibility with Windows have to do with DirectX?
HighFiveJesus @ Jan 23rd 2009 2:37PM
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!
Ungamer @ Jan 23rd 2009 2:49PM
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.
Levi @ Jan 23rd 2009 3:21PM
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.
mutebomb @ Jan 23rd 2009 3:49PM
@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.
Zertoss @ Jan 23rd 2009 5:34PM
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.
SoulBlade @ Jan 23rd 2009 1:33PM
It's not like they tested the 360 anyway..
Wiinterfang @ Jan 23rd 2009 1:37PM
Ka ZING.
Shagittarius @ Jan 23rd 2009 1:40PM
Considering the failure rate of the 360 I'd say they got off easy.
Rocketboy @ Jan 23rd 2009 2:05PM
And it's not like any games have had quickly found errors once they get to market. Hell, get rid of the testers because they've been doing a terrible job.
Poisoned Al @ Jan 23rd 2009 1:40PM
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.
Duke @ Jan 23rd 2009 1:40PM
I'm kinda surprised about Aces, I thought the Flight Simulator games were very popular and considered the top tier of that style of game.
Dr Jeckyl and Mr ESC. @ Jan 23rd 2009 1:50PM
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.
Levi @ Jan 23rd 2009 3:27PM
Hahaha best response ever.
Dr Jeckyl and Mr ESC. @ Jan 23rd 2009 1:43PM
"The studio was responsible for the Flight Simulator series"
NOOOOOOOOOOOO!!!! Not them.
manyuca @ Jan 23rd 2009 1:44PM
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.
SoulBlade @ Jan 23rd 2009 1:49PM
big businesses rarely care about employees. and a lot of employees are dead weight sadly.
if the people that ran the businesses actually cared about employees, they'd be taking a pay cut and readjusting some of their practices.
TracerBullet @ Jan 23rd 2009 1:47PM
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
Zertoss @ Jan 23rd 2009 1:53PM
FFFFFFFFF
I really just don't know what else to say anymore.
Just... FFFFFFFFF
Markez (Rubberband Banjo till Death) @ Jan 23rd 2009 1:57PM
JUMANJI!
Dr Jeckyl and Mr ESC. @ Jan 23rd 2009 2:06PM
I think you are looking for FFFFFFFFFFFFFUUUUUUUUUUUUUCCCCCKKKKKKK!!!!
Also try SSSHHIIIIIIT WAAAFFFLEEEESSS!!!
Sheppy (of the Fidlious Clan of Wong) @ Jan 23rd 2009 1:56PM
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.
PSN: Aggie_CEO @ Jan 23rd 2009 1:58PM
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...
Duke @ Jan 23rd 2009 2:20PM
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.
PSN: Aggie_CEO @ Jan 23rd 2009 2:26PM
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"
Duke @ Jan 23rd 2009 2:29PM
Like I said before - if they lost 4 billion in one division and made 20 billion (made up number)in the other divisions, the same year then there is not a company loss to be paid back.
KingOfGods @ Jan 23rd 2009 2:30PM
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.
PSN: Aggie_CEO @ Jan 23rd 2009 2:46PM
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.....
RIP R.L. Causton - YOU WILL ALWAYS BE MISSED (PSN johnnynumber5) @ Jan 23rd 2009 2:55PM
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.
RIP R.L. Causton - YOU WILL ALWAYS BE MISSED (PSN johnnynumber5) @ Jan 23rd 2009 3:11PM
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.
Mr Khan @ Jan 23rd 2009 3:58PM
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
PSN: Aggie_CEO @ Jan 23rd 2009 4:13PM
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....
343 Guilty Fart @ Jan 23rd 2009 2:10PM
Aren't testers usually contract workers anyways? I know they are at EA and Sony. Or does MS use full-time with benefits testers?