Xbox had a terrible strategy, and now they're laying off 3,200 people and ditching 5 studios

From Asha Sharma's letter to Xbox employees earlier this week (via IGN):

To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. While those businesses have created meaningful value, they did not grow at the pace we expected. As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history. We must reset XBOX.

As someone who has been critical of Xbox's strategy, management of studios, and Game Pass at a very fundamental level for many years, there's of course a bit of satisfaction with seeing the head of Xbox agree with all those points. But it's cold comfort for how they're handling the situation now, which I think shows a lack of respect for the medium.

I'm sure I'll write more about this later, but for now, here's an excerpt from the latest Digital Foundry podcast with John Linneman talking about how part of these 3,200 job cuts were effectively gutting the game engine developers at id Software (for reference, gutting the engine development team at id is like gutting the industrial design team at Apple. Okay, you can do that to save money temporarily, but you're cutting the core of what makes them great).

This is the worst thing Xbox has ever done for me personally and a direct insult to the medium and it shows the leadership knows nothing and cares nothing about the industry. They are here to make money exclusively, and they will do it by any means necessary. And I can see why. If you look at the Excel sheet or you ask Copilot, be like, oh, Id Software releases one game every like 4 or 5 years and they have this big custom engine. Why? You know, so let's just cut all that and spend less money and be done with it, you know, either they support studio. I doubt it.

They just make things differently. I just don't understand how even they could achieve that. They said they want to keep the IP. They want more Doom and Wolfenstein, whatever games, but they want it more often and they want to leverage that IP, but you cut half the studio. Who the hell is going to make this rich? Who's going to make this? What's the point? Like, what are they even doing?