
Xbox Faces a Tumultuous 2024: Wins, Losses, and Controversies | Image Source: kotaku.com
REDMOND, Wash., 26 December 2024 – Xbox experienced a year of polarization, marked by important achievements but also considerable challenges. As the game giant closes in 2024, the story of his successes and setbacks paints a complex image of a company navigating through strategic expansions, increasing costs and disputes. The year saw significant gaming launches, expansions to its Game Pass subscription service, and the fall of massive layoffs and study closures, allowing industry observers to question the management of Microsoft’s gaming division.
Blockbuster launches Anchor Xbox 2024
One of Xbox’ most notable achievements in 2024 is its robust release program, strongly reinforced by the acquisitions of Activision Blizzard and Bethesda. According to Kotaku, titles such as Call of Duty: Black Ops 6, the expansion of Starfield, Indiana Jones and the Grand Circle were highlighted. Many of these games were published directly in Xbox Game Pass, strengthening the attractiveness of the platform as the main destination for players.
Bethesda helped align with the extensions for The Elder Scrolls Online and the release of Elder Scrolls on mobile, while Activision added inherited titles such as Spyro and Crash Bandicoot to the Game Pass library. Despite the tone of celebration of these launches, the success was bitter, as the same studies that delivered these games faced serious layoffs before the year.
Studio layoffs and closures
In January, Microsoft announced layoffs that affected approximately 1,900 employees in Activision, Bethesda and other Xbox studies, according to Kotaku. These reductions occurred only three months after the acquisition of Activision Blizzard and were followed by further reductions in May. Among the victims were three studies belonging to Bethesda – Tango Gameworks, Arkane Austin and Alpha Dog Games – while Roundhouse Studios was absorbed into the team behind The Elder Scrolls Online.
The Federal Trade Commission (FTC), which had previously expressed concerns about Microsoft’s acquisition of Activation, filed a formal complaint citing these sheets as a violation of its warnings. Meanwhile, the gaming community and industry users expressed frustration at the disconnect between Xbox’s achievements and its treatment of employees.
Step of the game Evolution but at a cost
Xbox Game Pass, long held as an innovative subscription service, underwent major changes in 2024. While continuing to deliver daily versions such as Palworld, Metal Slug Tactics and Hellblade 2, the service also experienced a price increase. Xbox Game Pass Ultimate increased from $17 to $20 per month, while the console plan was replaced by only a “Game Pass Standard” level of $15 per month that excluded one-day releases, a star-like release from the previous service value proposition.
According to Kotaku, price and access changes appear to be a cost response of nearly $70 billion in the acquisition of Activision Blizzard. However, these changes tarnished the reputation of the service, with many users expressing dissatisfaction with the reduced benefits despite higher costs.
Xbox Console Sales Lag Amid Multiplatform Strategy
Console sales remain a weak point for Xbox, Microsoft having difficulty competing with PlayStation and Nintendo. As Kotaku reports, some publishers have questioned the possibility of continuing to publish games on Xbox platforms because of their base of smaller players. In order to expand its reach, Xbox has increasingly loaded its games on other platforms, including PlayStation and Nintendo consoles.
Although practical, this multiplatform approach has raised controversy among Xbox’s followers. The unique Xbox, like Indiana Jones and the Grand Circle, is linked to PlayStation versions, which contradicts previous exclusivity guarantees. The head of Xbox Phil Spencer, however, insists that the company is engaged in its hardware, involving future consoles and even a portable Steam Deck device.
Mixed Signs About the Future
Despite the turbulence, Xbox is optimistic about its future. The new titles of Bethesda, Activision and other studies should make 2025 another important year for the brand. However, questions remain about the viability of its current strategy. The terminations and closures of the study, as well as Game Pass’s evolving model, raised concerns about how the company balances profitability with its commitments to players and employees.
According to Kotaku, Microsoft’s growing attention to cloud games and AI investments could indicate a change of priorities. The company’s focus on streaming games and extension to platforms without Xbox reflects a broader vision, but also complicates its identity as a console manufacturer. While Spencer assured fans that Xbox hardware will remain part of the company’s plans, growing reliance on cloud-based solutions suggests the opposite.
As the game landscape evolves, Xbox’s challenges illustrate the difficulty of climbing a game empire in a competitive market. While 2024 brought important victories in terms of gaming launches and service expansions, it also highlighted the cost of these victories - both financial and human. As Xbox prepares for another crucial year, it must address these concerns in order to maintain its momentum and regain confidence between its community and the workforce.