Through a long and very interesting post published on Mike Ybarra, the former president of Blizzardhad his say on the latest news regarding Xboxthe negative feelings from the community and the rumors that emerged from reports from publications such as Bloomberg and The Verge, also explaining that Microsoft Gaming has all it takes to achieve success, as an ecosystem or as a multiplatform publisher, which in his opinion could happen only if you realize High quality games at a regular pace.
First, Ybarra talked about IGN’s recent report, where two sources said Microsoft’s top management is overriding Phil Spencer’s decisions and pushing for cost-cutting at the Xbox division.
“Xbox has always been responsible for its own business. Even when it was small or at a loss, the pressure exists and will always exist. Today I see some articles with anonymous former Xbox employees talking about the Board of Directors… I don’t see it as “the Board” does something different. It’s not their job to be the operators who tell business units and teams what to do on a day-to-day basis. the pressure and stakes are always high and they only get taller as you grow. I’ve never seen Satya impose anything from the top down – he asks questions and pushes, but he empowers his teams. He is a fantastic leader.”
Without great games, hardware doesn’t sell and Game Pass stagnates
Subsequently, the former president of Blizzard spoke about current market conditions, Xbox’s work in the sector and how to obtain positive results we need great games at a constant pacean objective which in his opinion is not materializing at the moment but which is within the company’s reach, thanks to the large number of highly talented teams under its wing.
“The idea that ‘the market isn’t growing’ is a PR excuse. As a team, it’s your job to drive your own growth even if the market isn’t growing at the expected rate. Rather, I think the problem is that ‘the strategy is not working as expected’. Which is fine – strategies have to constantly change in a fast-moving gaming market.”
“It all comes down to making great plays. If you make great plays, consumer demand will follow and your business can do well even in low market growth years. A great game is a $500 million to $1 billion profit generator for the company (across platforms). Given the size of the studios, you need to get to a world where some of the teams are achieving this at the right pace (you don’t need all your studios making big, huge games… and you shouldn’t, as the risk profile it is too big). After all, your install base is large right now given where we are in this console generation (and obviously large on PC too) so the opportunity for success exists.
“If you’re not making great plays, then your hardware isn’t selling and your subscription is stagnating…the clarity of strategy or execution is broken somewhere and needs to be repaired, ensuring leadership and the team’s ability to drive great game growth and development is ensured. 100% Xbox has teams that can make great games. It’s just not happening consistently.”
Xbox needs to aim to become a great ecosystem… or a great publisher
According to Ybarra, Xbox has ahead of it two roads: Take big risks by investing in Game Pass, hardware and exclusive products, or become a large multiplatform publisher. In both cases, as already stated, great games at a constant pace and clear communication with the players are needed.
“I see two paths here: if your North Star is your Game Pass subscription, you must make it exclusive to your services and Hardware and fully commit across games, Hardware and services in an exclusive plan where you strong points. Regularly pumping games ratings above 90 will drive consumer affinity and satisfaction. That said, it is a high risk/high reward strategy and requires a strong desire to win. ”
“If you are not willing to do that, then you are on another path: you are one publisher across all devices and you have to embrace this 100% and be clear (probably means getting out of the hardware market, I fundamentally believe that if you don’t have great exclusive content your hardware is doomed because people won’t understand why they need it).”
“Being the largest game publisher in the world is a great place to start – as long as you can make great games. If you can’t, you’ll be back where you started. You have to choose your lane and go hard for success, with clear communication to your players. If you play in the middle of these two paths, in my opinion you will hurt your teams and have constant turnover and chaos. It begins and ends with a strong desire to win and make great plays that exceed player expectations. This is what is fragile at the moment and needs to be addressed as soon as possible.”
Finally, Ybarra also has some advice for gamers, which is to continue to have faith in Xbox, but at the same time ask for clarity on what the company’s future plans areand then draw the necessary conclusions.
“These are all difficult decisions, certainly not an easy task given the current situation, and both paths have dramatic implications. But I fundamentally believe in Xbox, its fans and the opportunity that lies ahead for great hardware, services and games . Or as a publisher of games and services on any screen. keep the faith in Xbox but ask for clarity on what the future path is for the brand and the product. Then make your own decision about what is best for you and your precious time and money.”
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