Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
October 24, 2014
arrowPress Releases
October 24, 2014
PR Newswire
View All





If you enjoy reading this site, you might also want to check out these UBM Tech sites:


Microsoft CEO committed to Xbox, but also to changing the company
Microsoft CEO committed to Xbox, but also to changing the company
July 10, 2014 | By Christian Nutt




Microsoft CEO Satya Nadella has said in no uncertain terms that the company has no plans to sell off its Xbox division, but made his vision for the brand clearer in an all-hands email sent to employees (and posted on the web) today.

Nadella was installed as CEO of Microsoft in February, and has a strong enterprise background -- leading many to speculate he wouldn't be interested in the Xbox business. The Xbox One console has also so far been lagging behind Sony's PlayStation 4.

Xbox = opportunity

However, while Nadella admits that the Xbox business is not part of Microsoft's "core," it's also "important to make smart choices on other businesses in which we can have fundamental impact and success" -- and that's Xbox.

"The single biggest digital life category, measured in both time and money spent, in a mobile-first world is gaming. We are fortunate to have Xbox in our family to go after this opportunity with unique and bold innovation," Nadella writes. "Microsoft will continue to vigorously innovate and delight gamers with Xbox."

Change is coming to Microsoft

However, change is coming to the company at large -- Nadella's email promises big shifts in the structure in its workforce, and software developers across the company will be shifted into new jobs and use new methodologies.

It's unclear precisely what this email presages, but Nadella seems bent on remaking the company now that he's in charge: "Organizations will change. Mergers and acquisitions will occur. Job responsibilities will evolve. New partnerships will be formed. Tired traditions will be questioned. Our priorities will be adjusted."

Microsoft just recently went through a restructuring process prior to former CEO Steve Ballmer's exit. The company appears to have already been reevaluating the structure of its game studios; a recent example of that is layoffs at Rare.


Related Jobs

Forio
Forio — San Francisco, California, United States
[10.24.14]

Web Application Developer Team Lead
Forio
Forio — San Francisco, California, United States
[10.24.14]

Project Manager / Producer (Games)
Digital Extremes
Digital Extremes — LONDON, Ontario, Canada
[10.24.14]

UI ARTIST/DESIGNER
Digital Extremes
Digital Extremes — London, Ontario, Canada
[10.24.14]

Generalist Programmers










Comments


Benjamin McCallister
profile image
""The single biggest digital life category, measured in both time and money spent, in a mobile-first world is gaming. We are fortunate to have Xbox in our family to go after this opportunity with unique and bold innovation. Microsoft will continue to vigorously innovate and delight gamers with Xbox."

What a load of verbose non-speak that is clearly geared towards vacuous, zombified board room members.

Michael Wenk
profile image
I read his statement as that while he's not going to toss Xbox, he framed it in mobile. To me that means one of two things, either he's planning on a mobile game devices, which I don't see as likely. Or he's planning on putting more game things into Windows Phone. I'd see the windows phone push as much more likely.

He doesn't say specifically that MS will continue Xbox in the way it currently is, in fact if you read the letter, it sounds like he wants to use the expertise in mobile.

However, and since Nadella came from MS, and more important Bill Gates is mentoring him, I don't think he'll kill off the Xbox console business. It likely won't get as much love.

That may be a good thing, without a ton of resources they might focus purely on games rather than try to hit the living room.

Christian Nutt
profile image
Yeah, it's hard to fully understand it, but there's no reason Xbox can't become a service. It also makes sense given the way the company's overall moving into turning its traditional products into services (Office 365) or offering new ones (Azure.)

The email is full of nice sounding but very vague statements, though, and is impossible to interpret meaningfully.

SD Marlow
profile image
Coming soon: Bing Play and Microsoft TV.

Troy Walker
profile image
this to me (having read many a-letter from CEO mumbo-jumbo-talk) seems obvious that:

- xbox development will continue = (for now)
- "Organizations will change" = staff reductions in many "non-core" functions.
- "Mergers and acquisitions will occur" = we will continue to purchase possible middleware platforms to be integrated or not into our own products (roll the dice on that). If we merge a division or acquire something similar that might add value to our products, staff reductions will probably occur on either end of the rope.
- "Job responsibilities will evolve" = staff reductions in many "non-core" functions, prepare to re-apply for your position or given a transfer package to unemployment services.
- "Tired traditions will be questioned" = our employee investment and personnel development planning will be modified along with advancement opportunities.
- " Our priorities will be adjusted." = we are going to shut-down non-core profit centers in the company and focus (probably mistakenly) for markets that we are severely falling behind in.


the last one I may be wrong about, but when letters like this bubble up to the public the shit is hitting the fan and people are worried.. obviously spilling out into the real-world. All this says to me is, Nadella is about to take a hatchet to a lot of shit to try and clean house and get things in order.

Troy Walker
profile image
I guess my crystal ball guessing wasn't to far off from realization:

http://www.gamasutra.com/view/news/221287/Microsoft_to_cut_18000_
jobs__but_Xbox_will_only_see_limited_change.php

http://www.gamasutra.com/view/news/221317/Report_Microsoft_to_win
d_down_Xbox_Entertainment_Studios.php


none
 
Comment: