Microsoft's Baffling Management Decisions

The latest news in the business world is Microsoft's drastic cuts to its ZeniMax studio system, resulting in the shutdown of several notable studios, including Tango Gameworks, Arkane Austin, and Alpha Dog Studios. This move has raised questions about the company's management and its priorities. Despite being one of the most profitable companies, Microsoft has been making significant layoffs, with this being the fourth round in the past year and a half. The average quarterly profits for Microsoft since Q2 FY23 have been $20.2 billion, with the company returning $8.4 billion to shareholders in the form of share repurchases and dividends in its most recently completed quarter. However, the Xbox business doesn't seem to be performing as well, with the company struggling to change its market share and the industry as a whole facing expectations of mild near-term declines and more modest growth. Microsoft's leadership has been criticized for its handling of the situation, with many feeling that the company is prioritizing profits over people. The 'fewer, bigger, better' strategy that the company seems to be adopting has been questioned, with some arguing that it will lead to more expensive AAA games that may not perform well. The company's decision to shut down studios that have produced successful games, such as Hi-Fi Rush, has also been met with criticism. With the number of new releases from Activision Publishing and Blizzard Entertainment decreasing significantly, it remains to be seen how Microsoft's new strategy will play out. As the company continues to make cuts and prioritize profits, it's unclear what the future holds for its employees and the gaming industry as a whole.