Following the news developer id Software has been significantly impacted by Asha Sharma's sweeping Xbox job cuts, John Carmack has shared his thoughts.
Wait, the plan was to get recurring revenue out of single player games by tying them to gamepass.
This failed, for entirely predictable reasons, and now MS is holding a load of very mature, stable game studios and needs them to make checks notes double the revenue (actually, profit). This simply isnt posssible.
Theres a story out from early in the year about MS requiring a 30% profit margin across the firm which when applied to games is just nonsense. Not ambitious or unrealistic, nonsense.
Games is a terrible fit for MS and the companies who allowed it to buy them for stability are realising that.
Wait, the plan was to get recurring revenue out of single player games by tying them to gamepass.
This failed, for entirely predictable reasons, and now MS is holding a load of very mature, stable game studios and needs them to make checks notes double the revenue (actually, profit). This simply isnt posssible.
Theres a story out from early in the year about MS requiring a 30% profit margin across the firm which when applied to games is just nonsense. Not ambitious or unrealistic, nonsense.
Games is a terrible fit for MS and the companies who allowed it to buy them for stability are realising that.