Lately, Microsoft has undergone a radical change in image and company focus; this re-focus affects most of their divisions as they try to decide where their core lies. However, especially after they axed Xbox Entertainment Studios, they don’t seem to know where the Xbox brand fits in.
Over the last year, the Xbox brand has been building itself around a core vision – being an ‘all-in-one’ entertainment unit. This saw Microsoft implement features such as the HDMI-in slot for TV functionality, a slew of entertainment apps, and the birth of Xbox Entertainment Studios. The some-200 employees were in charge of Xbox Originals, which was set to bring a multitude of original TV programs to the Xbox One. Now that they’ve fallen prey to Microsoft’s closures, it skews the original picture the Xbox team set out to paint.
According to IGN, a few key staff will remain on-site to deliver the studio’s immediate upcoming projects, such as Halo: Nightfall, Steven Spielberg’s separate Halo TV series, and the first episode of their documentary series, Signal to Noise.
Thankfully, upcoming Xbox Originals projects, such as Halo: Nightfall, are unaffected
This closure comes after Xbox Division boss stated that the Xbox will see “limited change”, and – worryingly – after company CEO Satya Nadella said the Xbox isn’t part of Microsoft’s ‘core’.
What is the Xbox division to Microsoft, then? They were an all-in-one division, focused on delivering blockbuster games as well as innovative entertainment opportunities. According to an all-employees letter Nadella wrote last week, Microsoft is “… fortunate to have Xbox in our family to go after this opportunity with unique and bold innovation. Microsoft will continue to vigorously innovate and delight gamers with Xbox.”
This statement provides ill-comfort after the Xbox Entertainment Studios closure – if they aren’t supporting the division’s innovation with original TV programming, then what are they supporting? Do they want the Xbox brand to focus more on games and less on entertainment?
Phil Spencer issued a response regarding the closures, detailing his pride for those working at the Xbox brand. Moreover, he states that other entertainment areas of the Xbox One are unaffected:
“Additionally, our app partnerships with world-class content providers bringing entertainment, sports and TV content to Xbox customers around the world are not impacted by this organizational change in any way and remain an important component of our Xbox strategy.“
With reassurances that the change is largely so Microsoft can focus on strengthening its video game business, he goes on to say that this closure actually helps them “better align with [our] long term goals.”
So what does Xbox One mean to Microsoft? Do they still want them as a brand focused on delivering a balance of games and entertainment in one console? Or do they want a gaming console that focuses strongly on gaming over entertainment peripherals? In one swift stroke they have managed to throw the Xbox divisions previously constructed image right out the window. And this is after they stopped bundling the Kinect; something else which was part of their original vision.
Microsoft needs to decide where to go with the Xbox brand, and they need to set them on that track right away; they need to give it an identity and a direction. Without one, the Xbox One is forever doomed inside console purgatory, where no one really knows exactly what its focus is – even the company that built it.
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