Xbox Legacy in Jeopardy as Activision and Bethesda Gain Control
Microsoft's Xbox division is facing an intense crisis, according to analysts who believe that Activision and Bethesda are gaining control over the former Xbox structure. NYU Stern Professor Joost van Dreunen called this situation a 'slow reverse acquisition,' noting that these two companies are becoming key decision-making structures and taking control of legacy Xbox projects.
Experts from Omdia and Alinea Analytics warn that Microsoft's focus on Game Pass has not expanded the audience as expected, and may have even deterred players from purchasing games at launch. As a result, the company is reducing its internal portfolio and focusing on large publishing structures, which could reduce competition between projects for player attention.
The distribution of genres among divisions also raises concerns, with shooters going to Activision, RPGs to Bethesda, casual games to King, and racing games to Playground Games. The failure of Ninja Theory, a studio that was involved in two unsuccessful attempts to sell, highlights the difficulties in monetizing expensive single-player projects.
Dr. Serkan Toto of Kantan Games warns that excessive simplification of the structure could strip acquired studios of their individuality and lead Xbox into an even deeper crisis if key future projects fail.