“Hellblade 2” could be released for the PS5. Such a version was reportedly being considered by Microsoft. At the same time, the question arose as to whether even expanding to other platforms could be sufficiently successful.
Microsoft's new strategy raises questions: Which games will be published for external platforms in the future? What further significance does it have? Xbox Game Passespecially taking into account Sales heavyweights like “Call of Duty”? And how safe are Microsoft's smaller studios?
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These questions have been discussed extensively for two days. The trigger was the latest studio closure, where it even Tango Softworks met. His game “Hi-Fi Rush” was one of the surprise hits of last year. Compared to “Call of Duty,” it’s small fry.
How successful does Hellblade 2 have to be and how helpful is a PS5 version?
The closure of Tango Softworks is reportedly leaving the other Xbox studios feeling deeply unsettled. Because the question remains open as to how successful a game must be in order to secure its own existence. And will individual failures result in drastic measures in the future?
“Senua's Saga: Hellblade 2” is the next game to come from an Xbox studio. It will be released on May 21, 2024 for Xbox consoles and PC. Game Pass subscribers can access at no additional cost.
Tom Warren of The Verge reports about itthat Microsoft was also considering a PS5 version of “Hellblade 2”. There is no corresponding announcement. But given the Redmond company's new multiplatform orientation, it wouldn't be a big surprise.
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More importantly, “If this ever happens, it is not clear at this point whether even that would be considered a success,” writes Warren. “Xbox employees are now preparing for what’s to come. Because it seems unlikely that we have seen the last of Microsoft's layoffs and cuts in gaming.”
In fact, we reported this morning that further closures are imminent:
According to Warren, there are “whispers” among employees that Xbox game studios in particular will be hit by cuts next.
The relevance of Xbox hardware is dwindling
With Activision Blizzard and Bethesda on board, Microsoft is one of the largest multiplatform publishers and at times even the company with the Most active players on PS5 and Xbox Series X/S. The company's own consoles have a declining share.
Last month, Microsoft announced that Xbox hardware sales fell 31 percent compared to the previous year. This is due to the “lower volume of consoles sold”. A comparable decline was reported last year. And in the new fiscal year, Microsoft expects this trend to continue.
Microsoft has not reported sales figures for years and always referred to other metrics. The latest annual report also makes it clear that the Redmond-based company's total gaming sales would have fallen in the last quarter without the takeover of Activision Blizzard. Together with the publisher, however, gaming revenue increased by 51 percent.
At this point an assessment of VGC a. As Julian Benson writes: “The problem that Microsoft faces – and it has created this all on its own – is that it now owns a number of studios working on games that are insignificant compared to Activision-Blizzard's titles “Hardly make a difference in terms of sales growth.”
It's worth taking a look at one Financial report of the previous year. In it, Microsoft writes: “Gaming revenue increased $36 million, or 1 percent, due to growth in Xbox content and services, partially offset by a decline in Xbox hardware. Xbox content and services revenue increased 5 percent due to growth in third-party content and Xbox Game Pass.”
With the latest revenue growth of 51 percent, it's clear: “After the Activision-Blizzard acquisition was completed on October 13 last year, Xbox became a fundamentally different and larger company, operating at a different scale than before,” Benson continued .
The shareholders must be satisfied
To serve shareholders' interests, it is essential for Microsoft to continue to expand. Stagnant sales are considered a failure and have a negative impact on the stock price.
Gaming boss Phil Spencer also expressed similar sentiments in a recent interview: “What concerns me most is the lack of growth in the industry,” Spencer said in one Conversation with Polygon. He's looking at an industry that will likely be smaller next year in terms of players and revenue. In contrast, there are “a lot of listed companies” that have to show growth to their investors.
“The side of the business that is under scrutiny is the cost side. Because if you can’t increase revenue, the cost side is called into question,” Spencer continued.
So what does this mean for “Senua's Saga: Hellblade 2”? It's worth taking a look at a statement from Microsoft's Aaron Greenberg. Before the acquisition of Activision Blizzard he explained on Twitter/X: “Hi-Fi Rush was a breakthrough in all important areas and expectations for us and our players. We couldn’t be happier with what the team at Tango Gameworks has delivered with this surprise release.”
The studio was closed by Microsoft this week.
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