After the billion-dollar company’s leaders sent staff a memo saying the brand had ‘over-extended’, game studios may be in the firing line
In March 2000, Bill Gates stood onstage at the Game Developers Conference in San Francisco and, to a packed crowd, officially announced the company’s long-anticipated video game console. “We want Xbox to be the platform of choice for the best and most creative game developers in the world,” he told attenders – and that was indeed the intention of the small, dedicated team who put together the blueprints of that first machine.
The Xbox landscape seems very different 25 years later. Last week, mere days after a bullish summer showcase full of Gears of War revivals and promises of a renewed focus on Xbox’s gaming strengths, new CEO, Asha Sharma, and chief content officer, Matt Booty, wrote a memo to Xbox staff inviting them to brace for “hard truths”. “Excluding Activision Blizzard King, over the past five years, we have spent over $20bn on ongoing investments in our content, platform and hardware subsidy, but our annual revenue has declined nearly half a billion during that time. Going forward, this cannot continue,” it read.
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