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To be apathetic to something is to experience a lack of feeling or emotion in response to an event. For the Dukes, it's the word of the show. Xbox has been mismanaged for an entire generation and it has come at the cost of losing world class talents alongside studios. It was just in 2024 that we lost Tango Gameworks, Arkane Austin, Roundhouse Studios, and Alpha Dog Games. There was also the formidable Toys For Bob that went independent. That alone was more than enough to last us a generation, but today we learned that Xbox has closed down the studio they started back in 2018: The Initiative. Alongside that, Rare's Everwild has been canceled on top of a new IP from Zenimax Online Studios. There's no other way to slice it. For Xbox to improve, leadership must be held accountable. The question is if they ever will and given how situations at teams like Bungie have gone down, we expect a meek, weak willed level of accountability to the bloodbath at Microsoft this week. Indeed, much of the frustration is built off the back of constant, mind-numbing, inconsistent messaging. It was only in February that CEO of Microsoft Gaming, Phil Spencer, said Everwild was really shaping up. It was canceled today. With such wishy-washy messaging to their fans, the brand is at a point where no one can believe anything they say. Sure, a partnership with AMD to do next-generation consoles was announced within the last month. How can we trust that? It's the lowest level of trust asked of a consumer that you can believe an announcement when you see it. Instead, the only message we're left with is that if you're not a mega-hit in the making, Xbox wants to have no part of you. What does this say to teams like Compulsion and Ninja Theory or larger developers like Obsidian that like to split off in pursuit of smaller titles? It's amusing that Xbox has done this in the name of creating a sustainable business yet their methods and approaching to making games is arguably the least sustainable thing we've seen. They're all in on a subscription service while putting tens of millions of dollars into making games. How it'll all shake up will be interesting to watch, but many of us know how this story will end. Timestamps:0:00:00 - Intro

0:02:40 - Health is Wealth

0:20:27 - Xbox layoffs

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Comments

Michael McCoy

i was patiently waiting for this 🙏

Michael McCoy

I’m not a Mets fan but my team is totally cooked, so I’ll root for them for y’all 🤣

Your Boi Nicky V

Lol held off my treadmill sesh an extra hour so I'd have this to listen to. Can't wait to hear the rants.

Lunar Tear

The moment we've been waiting for.

Kasual7

Here we go, DD about to break their record viewership with this one.

BigDumbStupidIdiot

As much as I love Matty and COG crashing out and calling out corporate dorks, it's very concerning how OFTEN they have to do so

Chris Evans

As a multi console owning Xbox fan, it’s over. Heads should roll over this but they won’t. Sad day.

Deemac

I don't know how Phil's head didn't roll ages ago. At this point I think Satya just keeps him there as a mouthpiece to deliver news like this, but he ain't making decisions going forward

Chris Evans

I’ve given him a ton of slack because of his absolutely devastating the launch and first couple years of Xbox One was under Don Mattrick but at this point Phil hasn’t gotten it done. I agree though I think it’s possible that the higher ups at Microsoft have put Xbox under a microscope and are largely (unfortunately) calling the shots and killing the Xbox brand.

BamAHamYum

Phil needs to go, he’s done enough. Countless CEOs have been sacked for FAR less than this.

Michael McCoy

Seriously. The entire leadership at Xbox needs to go, how have they been able to continue their incompetence for so long? At least Hulst got demoted after Concord.

Walk Forward Cutscene

If you’re going to virtue signal about job losses, you have to call out Microsoft’s abuses of the H-1B program.

BamAHamYum

I place a (very small) amount of blame for this entire situation on certain talking heads within the Xbox space—specific YouTubers and Twitter accounts I won’t name, who have done nothing but endlessly shill for Xbox, shift goalposts on a whim, and propagate lies and buzzwords on behalf of Xbox leadership. They refuse to offer any criticism or ask difficult questions, all for a few dollars and the chance to take selfies with Sarah Bond and Matt Booty. Yes, similar figures exist in the Sony and Nintendo communities, but Xbox creators have become particularly brazen—borderline idiotic—in their coverage ever since Microsoft began this trajectory of “redefining the future of gaming” while laying off staff every 3–6 months. It’s disingenuous at best, and deliberately misleading at worst. This should go without saying, but this does not apply to Matty or Cog. However, it does apply to a significant portion of those who cover Xbox daily. And to those people, I ask: was it worth it? Were the selfies, the review codes, and the Twitter updoots really worth it?

Dustin's furry little wheener

It’s honestly kind of bizarre how much praise Ryan McCaffrey from IGN is getting now for “speaking the hard truth” about everything going wrong at Xbox. I mean, let’s not forget how he reacted when Xbox was on its buying spree. After the Activision deal was announced, he was grinning ear to ear, speculating who they’d buy next — Capcom? Sega? Square Enix? I remember thinking, what the fuck dude!?? Phil Spencer was constantly showered with praise, and I never understood it. Same with Game Pass — there was always this smug attitude towards PlayStation, mocking PS Plus like Sony was behind the curve. But in hindsight, thank God Sony didn’t follow Xbox’s path. Game Pass has been a massive flop so far(financially) No other company could afford to burn that much money for that many years. And now Xbox putting all their games on PlayStation? That’s the clearest sign yet that their model isn’t working. Sure, it’s finally bringing in some revenue, but it proves Colin was right all along. He’s been calling this for years — and he was absolutely spot on.

Jon Barnett

Man, haven't listened yet but that write up is really good. Terrible news of course, but that last line is intense.

Haru Discourse

Xbox keeps making it harder to be a fan. I still love playing games on my Series X, but man this generation has been really rough…

Deemac

Phil calling Everwild "his baby" only for it to be cancelled a few months later, perfectly sums up his time at the helm of Xbox. Just several years of horrific mismanagement. Boggles the mind how he still has a job there

Sucking Duck for Quack

Love you guys but let’s not twist anything. Y’all were also super positive and celebratory when Xbox bought ABK. Episode 132 to be specific (and the following episodes over the course of 2023). Tons of people, including your own boss, Colin, said that it’s a potentially massive negative. Microsoft will need to see massive revenue to justify a purchase that large. Making an investment like that when your main line of business regards a streaming service is borderline suicide. And here we are. Closure after closure. Layoff after layoff. Yes, it’s an industry issue, but Xbox does it lore than anyone. Hands down. The reason people shit on GamePass as a service is simply because you don’t push revenue. If you don’t push revenue, what does a multitrillion dollar company do? They downsize. I don’t want to see people lose their jobs. I don’t want to see studios that I love go away. But when a streaming service is your number 1 business model, in the games industry, there’s just no succeeding. Gamepass being your “go big or go home” is dangerous and worrisome. The purchase of ABK on top of that? Death sentence. For context, Netflix is by far the most famous and successful streaming service in the world for entertainment. They launched their streaming service in 2007 and it took 5 years to see a profit. That’s in an industry where entertainment turnaround for tv and films are relatively quick, especially back in the late 2000’s. In video games, it takes 5-7 years to make a game. You need a steady flow of content to keep people interested. Revenue doesn’t come from one month subscribers. It comes from consistent customers. How can you expect people to stay consistently when you have to gauge the flow of content half a decade in advance? It’s a slippery slope, and predictably, Xbox has to hit the Life Alert button.

Master Rahl

We need a Sacred Symbols X Duke!!

Germanos

Legendary comment. Hope the Dukes notice.

Sucking Duck for Quack

I hope they don’t read it negatively. This isn’t a “gotcha bitch” kind of moment. I just think the writing is on the wall about Xbox and their business model and it has been that way for literal years.

Germanos

My hope is that everyone understands that it was the Xbox community's toxic positivity that killed the brand.

Jacob Lesperance

Maybe I'm gonna get some hate for this one. Let me state my position, first. I think it's absolutely horrifying to be in that position of being laid off and having to worry about everything that was in that letter. And as a person I really do feel for these people and it makes me sad. When people have been talking about sales, and how they think the business of Xbox isn't making any money. I've been asked why I care. Do you have stock in the company? Do you have a financial interest in the company? And from Cog himself has stated he is a consumer first and isn't pocket watching. How the company makes money isn't his concern. So why is this any different? Again, as a human just caring about people I understand the difference. My point is and always has been. These things are intertwined. If you love something, you have a stake in how they are doing financially. This isn't a dig at anyone. I just am really curious how people separate the two topics, because too me they are one and the same. One leads to the other.

Arnaldo Martin

Matty asked how do they keep jobs when all these folks are let go. Its because the revenue line continues to go up. That line goes down for any reason, that's when Phil and the C-Suite will be on the hotseat.

Deli Dept.

This is so sad man, leadership needs to suffer the consequences

Walk Forward Cutscene

Okay Elon. I literally called out Microsoft. Your comprehension and rhetorical skills are so low that you didn’t even properly respond to my argument. Every 1st world country has had their standard of living eroded by mass migration, and even the general public realizes this now. Cope and seethe.

Deemac

Spot on, I honestly feel like this Gamepass model can be pretty damaging to the industry. You're essentially conditioning your player base to not pay for games, and that just isn't sustainable for how much games cost nowadays - the very fact Xbox has gone multiplat shows this. Often when a big 3rd party game is released, you'll see comments like "Oh I'll play when it comes to Gamepass", just assuming it will. You even see this just today when Helldivers was announced for Xbox, people questioning when it would be on Gamepass. Like even expecting a PS Studios game which has performed very well to go to your service, feels crazy entitled tbh

Unemployable troon

If you’re not contributing to the multi trillion dollar company’s profits than why are you owed life long tenure? I never understood why gamers treat devs with baby gloves

Sucking Duck for Quack

I care if companies like PlayStation and Xbox do well simply because if they don’t, studios I care about will die. I get what you’re saying tho.

Jacob Lesperance

Thank you. That's what I'm trying to get across. Just wasn't sure if it's actually how it came out.

BigDumbStupidIdiot

Stop pissing and shitting yourself, man. Xbox tanking isn't the fault of people on a H1-B visa. It's 100% on the people in charge. I don't care how hard your dick is about Alligator Alcatraz, blame the correct people. This is on the suits not some dude trying to make a living

Tony Upstairs Lazzaro

It's not that you care, you just care enough to see the thing you like keep being a thing. Of course it's not good to hear someone lost a job, but tbh as a consumer I can't muster much more about these things other than ah that sucks, and then I move on about my day.

Bert Chintus

Can’t believe yall read my shit with that name lmao respect. I’ll change it back soon

Dante B

If Cog can’t be moved to use the word “failure” at this point I honestly don’t know how bad it would have to get.

PairOfShuse

I agree with most of what was said especially with Matty, but I would like to point out that most of these job losses have been in the west. If anything I’ve seen tons of Japanese developers not only giving bonuses, but giving raises to employees as well. There are a bunch of things you can infer with this from watching the industry. Japanese developers are far less likely to go on social media and talk shit about gamers. If anything they say how appreciative they are. They also are less likely to push extreme politics, even when a games story might involve political dialogue. Too many western developers go online and bash their audience and speak to them in a dehumanizing way. I honestly also feel like the eastern devs from Asian countries, while they do have some samey looking games, overall give a broader style, type, and breath of games than western devs do on average. Add into that companies like Microsoft, which makes over 10 billion in profit every quarter, do not have the same culture and view people more as a cog in a machine in a bad way, which leads them to making decisions of money over personnel every time. All companies do this to an extent, but Microsoft REALLY leans that way.

mudder12

Man, I’m so curious to see how much money they threw away on Perfect Dark and The Initiative

Vladimir Grabbinmikov

It has been 11 years since Phil Spencer took over. In that time you got: - MCCs launch + 8 years to “fix” - Halo 5 - Gays 4 (Gears) - $500 dollar console when your comp is $400(AGAIN!) - Coach a player base to expect 60fps with FPS Boost and then proceed to launch every new exclusive in 30fps (RETARD ALERT 🚨) -GAYS 5 - Allow Arkane to continue making Redfall per Bethesda mandate after making Dishonored and PREY and then kill them (RETARD 🚨) - Introduce a sub+ service that not only kills your studios you just bought but also kills the want for your community to purchase anything on your platform outside of “SPORTS! and CALL OF DUTY” -HALO INFINITE!!!!!!!!!!! - WASTING YOUR FUCKING TIME SELLING YOU JRPGS REQUESTED BY FUCKING XBOX PODCASTERS!

Susan B. Anthony Bourdain

They should’ve kept Bobby Kotick and fired Uncle Phil. He’s a seasoned operator who would’ve whipped this shit into shape. Some employees would‘ve kicked and screamed, but they’d probably still be employed.

Susan B. Anthony Bourdain

Positive Cog is best Cog, even though this is a total shitshow. He was pretty open about the reality of this and the likelihood that he’ll have to go down with the ship because this ecosystem is where he’s been at for so many years. It is what it is at this point.

Dante B

There is a big difference between what you’re describing, and blatantly refusing to admit the gravity of the situation. This is the “toxic positivity” you hear about all the time, across all of these shows - including Duke.

TheWubbz

Phil is either the biggest two-faced liar or completely oblivious of what is going on. The ineptitude that he has shown over the course of these past few years is insane and things keep getting worse and he stays smiling like a dumbass.

Benthegamer

Love Cog and everything he promotes in this episode, of course Matty as well, very respectful episode

Az

A very well put together episode, thanks guys 🙏🏾

Dante B

Following up only to say one thing since maybe it isn’t clear. I fucking love Cog. I wish I were as optimistic as he is just generally speaking. I’d probably live longer.

Garry

I know it’s a bad week but no actual gaming news to leave the show a bit brighter.

Bailey Callis

Failure ignores all the incredibly successful games Xbox has pumped out this year. Don't get me wrong, Xbox is a mismanaged mess of a company with horrible communication, but it's not black and white. They're definitely looking at complete failure in the future if they continue down this road much longer

Bailey Callis

Xbox is so exhausting man. I'm tired boss

Dante B

You can still fail while putting out a successful game, and I think that “all” the “incredibly successful” games is a bit of a reach.

Bailey Callis

I'm saying all the ones that are successful, not that they're all successful. Honestly I would say there have been some huge successes this year, but that's just my opinion.

Susan B. Anthony Bourdain

I just disagree that he isn’t “admitting” to the gravity of the situation. He outlined it pretty clearly IMO.

Bailey Callis

People don't have any capacity to understand anything between "we're so back" and "It's over"

Dante B

I have plenty of capacity, thanks. Was a pretty civil disagreement, but I’ll let you have it. Take care!

Not a Sexbot..

Did you listen they, they explained why they left it where they did…?

Bartevious

Shoutout the ori games. They remain Xbox’s sole classics of the last 2 generations 😂

Bartevious

Community doesn’t have anything to do with it. Xbox hasn’t put out generation defining games in 20 years. Halo 3… that’s the last one. Execs weren’t doing a shit job because randos on twitter praised them. Ori games are classics. Modern Gears games are fine at best. Forza is sweet, but it is more in the madden/2k/cod camp. Other than that, we haven’t had shit since 360.

Gabriel Baker

It’s neither, after the Activision acquisition I think the whole Xbox executive suite lost a lot of autonomy. Satya runs Xbox now

Germanos

Well I still do hope they notice. I love the chemistry between tw duo, and their love for video games is clear. Its just painful they have the shackles of XBOX on them. I would love to see Dukes of Wealth as part of LSM.

NeO JD

Only thing surprising about the cuts is where they decided to cut from. Didn’t see Perfect Dark getting canned after a good showing. I figure this isn’t the end of the layoffs either. Things are getting spooky for team green. #DDAccountability

MrFreundly

Does anyone else flinch every time Xbox has good news. Clockwork Revolution looked great and now this… smh