Impact of the Microsoft/XBOX/Zenimax Restructuring?

FlopsyPrince · May 2024

XBOX just closed several studios (on other games) and I heard some of these were under Zenimax. I am having trouble finding if any of this impacted ZOS that we know of (and thus ESO).

Have any more details on this been released on any possible ESO impact?

Nerouyn · May 2024

https://variety.com/2024/gaming/news/xbox-closes-four-bethesda-studios-tango-gameworks-1235994961/

FlopsyPrince · May 2024

Nerouyn wrote: »

https://variety.com/2024/gaming/news/xbox-closes-four-bethesda-studios-tango-gameworks-1235994961/

That notes the studios and has the obligatory "the future looks great" that always comes after these types of announcements (across fields).

I am wondering if anything was mentioned about other restructuring, especially any that would impact ESO. Perhaps those closures are it, but this seemed a bit more comprehensive.

Alinhbo_Tyaka · May 2024

There was this thread from a couple of days ago talking about Roundhouse or some subset moving to ZOS.

https://forums.elderscrollsonline.com/en/discussion/658244/say-hello-to-the-devs-from-roundhouse-games-joining-zos#latest

DoofusMax · May 2024

None of those developers have had much, if anything, to do with ESO, although they were all owned by the ZeniMax parent company (ZOS is also under that umbrella). Arkane Austin's thing was stuff like Prey (pretty good) and Redfall (the less said the better), Alpha Dog was a mobile game developer (not my thing), and Tango developed stuff like The Evil Within and Ghostwire:Tokyo (both are reportedly good games, but neither is my cup of tea). Roundhouse, who hasn't developed anything I'm familiar with, is being folded into ZOS rather than shuttered. On the whole, I expect that this will have little impact on ESO, but it does point to some fiscal belt-tightening happening on Microsoft's end of things. Perhaps something to keep an eye on going forward, not a current or imminent crisis.

FlopsyPrince · May 2024

Alinhbo_Tyaka wrote: »

There was this thread from a couple of days ago talking about Roundhouse or some subset moving to ZOS.

https://forums.elderscrollsonline.com/en/discussion/658244/say-hello-to-the-devs-from-roundhouse-games-joining-zos#latest

I missed that one. Though I would love to know more about exactly what they will be doing. Given the past, I have a harder time believing this will be a staff increase rather than just something like replacing normal losses for a net neutral.

It is still good to know (if true) that ESO won't be directly impacted, though these kind of restructurings are rarely that clearly delineated. (In any field as I noted before, not just in the game field.)

Hotdog_23 · May 2024

My thoughts are the bean counters noted that ESO has made a big load of money, so the potential is their for it to continue to make big money for them. Adding more people is an overall positive and welcome addition. No idea how much or how quickly if ever we will see the fruits of labor the new group adds to ESO.

With the gaming and tech industry overall having a shakeup and layoffs this year, or at least more public shakeup and layoffs. It’s gives me hope to see ESO recognized as an asset worth continuing to invest into and not left to die a slow, painful death or shop closed up.

So welcome new folks, sorry you had to go through a shakeup at work and the stress that causes on you as an individual. We are a tough group and often thankless at times but overall, a great community here at ESO. Wish you the greatest happiness and success here at ESO with us.

Stay safe

Nerouyn · May 2024

FlopsyPrince wrote: »

I missed that one.

That was also detailed in the article I linked.

Elowen_Starveil · May 2024

At the conference in Amsterdam, I noted that they made a point of saying how financially successful ESO has been. It was signaling to the public in front of their new Microsoft overlords to try to reassure people that they wouldn't get caught up in exactly these kinds of cuts which *always* follow acquisitions. But is Zenimax's balance sheet strong enough for ESO to be left alone, in the presence of the acquisition of the behemoth that is WoW, which has 10x the number of players? I guess only time will tell. Sure, they say they've made a lot money, but the corporate game is about revenue/cost, and the other side of these numbers are secret, as far as I can tell.

Dovahkiin02191973 · May 2024

Xbox and company are looking at the next gen console situation and why it is failing. The reason or reasons for that are many. They want a smash hit game and thought they were going to get it with Starfield. So what do they do. They terminate 4 sub companies that were making pretty good games to narrow down the field which they think will produce the next big hit which will translate to lots of revenue.

ESO is not a next gen game and runs just fine when it is working right on all platforms and has generated the kind of revenue they want so it is not going anywhere. They may have their eyes now on Elder Scrolls 6 as being the break through game that puts them on the map of the next gen war.

In all honesty Xbox is going to have to redesign their next gen console. Bottom line is that the Series X is not powerful enough to run top quality next gen games. It was garbage on Starfield locked at 30 FPS which forced lots of players to turn to streaming services as the average consumer like me can't put down 4 Grand or more for a 4090 gaming PC.

Elsonso · May 2024

DoofusMax wrote: »

On the whole, I expect that this will have little impact on ESO, but it does point to some fiscal belt-tightening happening on Microsoft's end of things. Perhaps something to keep an eye on going forward, not a current or imminent crisis.

I expect it will have an impact on ESO, depending on what Roundhouse expertise is being transferred in. I also expect that it will have an impact on the other game that ZOS is creating.

As for why... fiscal belt-tightening might be a consideration, but also consider that XBox may be trimming studios that are not live services studios, too. An average live services game can make more money than an average single player title.

dcam86b14_ESO · May 2024

Well ZOS is working on another MMO so some of those teams could be sent there maybe.
I doubt their 2 billion dollar cash cow will be shut down, it's literally free advertising and word of mouth for any future TES projects.

wolfie1.0. · May 2024

If anything, expect some more monetization opportunities to be taken in eso.

Edit: and/or cost saving measures

FlopsyPrince · May 2024

"We won't do what every other company does after making changes like this!"

Anyone who believes this is a bit naïve at best.

Many know ESO makes money for ZOS. I just haven't seen that change the focus on things (for the positive) in the past, when it also made lots of money.

I would love to see more dev resources for ESO with those moving over, but I won't hold my breath waiting for that.

Though all this is why I raised the question. Nothing directly official for the ZOS we play with, except maybe some more resources, maybe.

Nerouyn · May 2024

dk_dunkirk wrote: »

Sure, they say they've made a lot money, but the corporate game is about revenue/cost, and the other side of these numbers are secret, as far as I can tell.

Yes.

Zenimax was a privately owned company so had to legal duty to publicly report any financial details.

I think it's likely that it significantly underperformed relative to expectations but that has been true of most MMOs.

Having been bought by Microsoft will be good for the game, is my guess. Before they may have been comfortably buffered by the success of the single player games and to avoid brand damage have kept pumping enough resources into ESO to keep up appearances but Microsoft will be keenly interested in and have the resources to grow the Elder Scrolls brand.

Following the success of the Fallout TV series Todd Howard has also for the first time said that he's open to an Elder Scrolls adaptation. Not actively pursuing it but he's open to suggestions.

Elsonso · May 2024

Nerouyn wrote: »

I think it's likely that it (ESO) significantly underperformed relative to expectations but that has been true of most MMOs.

Having been bought by Microsoft will be good for the game, is my guess. Before they may have been comfortably buffered by the success of the single player games and to avoid brand damage have kept pumping enough resources into ESO to keep up appearances but Microsoft will be keenly interested in and have the resources to grow the Elder Scrolls brand.

I think the narrative that ESO is underperforming/failing is getting pretty long in the tooth.

My thought is that if ZOS or ESO were not able to hold their own, and by that I mean making a profit, ZOS would have been in the list of studios being closed and ESO would have joined Redfall.

I don’t think that brand damage mitigation is going to keep a studio alive. It is known that ES6 is coming. It has a hype train separate from ESO.