Microsoft has faced a turbulent six months with layoffs, studio closures, and the controversial decision to release Xbox exclusives on rival consoles. The upcoming Xbox Games Showcase is a critical opportunity for the company to regain fan enthusiasm, with expectations of major game reveals and new release dates. Amidst these changes, Microsoft is also rumored to be working on a next-gen Xbox and a handheld device, while continuing to expand its game offerings to platforms like PS5 and Nintendo Switch under "Project Latitude."
Embracer has sold off Saber Interactive for $247 million and will cease operations in Russia, while improving its cash flow. The sale includes studios 3D Realms, Slipgate Ironworks, and more, and is being sold to a group of private investors under Beacon Interactive. The buyer also has an option to acquire 4A Games and Zen Studios for a total deal value of about $500 million. Embracer will retain other studios and IPs, and the long-term license and publishing rights to the Metro franchise. The sale is part of Embracer's restructuring plan to reduce debt and improve financial flexibility, and Saber co-founder Matthew Karch will remain a shareholder of Embracer.
A recent industry survey revealed that over 500 game development studios worldwide are currently working on or maintaining live-service games, with 95% of surveyed studios involved in such projects. The report indicates that the majority of live-service developers are working at a rapid pace to create content to keep players engaged, with 66% of studios considering live-service essential for long-term game success. While live-service games offer the potential for sustained revenue, many of them do not endure for extended periods, posing a challenge for both developers and players.
Rumors suggest that PS5 Pro dev kits have been sent to major game studios, indicating a potential release in 2024. The PS5 Pro is expected to offer double the performance of the current PS5 and has been associated with a major franchise title, possibly GTA 6. It is speculated to be the "world's most powerful console," capable of 4K 60 fps gaming, improved ray-tracing, and 8K output, all while costing less than $500.
Xbox Game Studios head Matt Booty says the company wants to be more "disciplined" about managing expectations for its upcoming games. Booty explains that Xbox's slow release slate is due to many of its acquisitions having unfinished projects and DLC obligations, but assures fans that there is plenty more to come. Booty acknowledges that Xbox's big promises have gotten them in a little bit of trouble, but he feels optimistic about the company's ability to deliver in the coming years. Xbox may be saving some of its showings for "other events during the year, other beats that we want to hit," and wants to be more disciplined about how it manages expectations.
Game studios Ready at Dawn and Downpour Interactive, both owned by Meta, have been impacted by the company's recent layoffs. The cuts are part of Meta's restructuring efforts, which include its game developers and Reality Labs divisions, as well as Facebook, WhatsApp, and Instagram. The affected employees were notified this morning, and the layoffs are expected to continue.
