Jul 17, 2014

What does Microsoft’s closure of XBox Entertainment Studios mean to XBox One owners?

I was surprised to see the news that included in the massive 18,000 job cuts is the elimination of XBox Entertainment Studios. I thought that Microsoft was “all in” on the XBox One, but this sure doesn’t look that way. What will this mean for XBox One owners over the life of the console? Will it have a significant impact on the user experience?

I think they are just refocusing on the fundamentals, I don't see this closure as being very significant at all. It was something that was really outside their core competencies and they are now putting an end to that. I think it makes a lot of sense for them to do this.

It’s not going to have all that much impact. It means that Microsoft will not be creating and streaming content in an attempt to compete with Netflix and Amazon, but I don’t think many people expected them to match the programming options offered by their competitors anyway. They had a few original programs, and the most popular, the Halo series will continue. I assume the other original programming will fade away, but I’m not sure how much traction it was getting anyway. 


I can see why Microsoft made this decision. They were trying something outside of their core competencies, and it was probably pretty expensive. I’m not sure how much of an ROI they were seeing from it. This was probably the right move anyway, as one of the criticisms Microsoft faced with the XBox One was that they were focusing too much on being a media hub and not enough on offering killer, next-gen gaming. 

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