Xbox Exec Peter Moore Leaving Microsoft for EA
Citing 'personal reasons' the face of Microsoft's Xbox system, Peter Moore, will be leaving the company as of the end of the month. The official press release just states that Moore is moving back to Northern California. Kotaku actually brought up the story as a rumour a few hours ago; their source pointed to EA's sports division as Moore's new home. Moore's replacement as head of the Interactive Entertainment Business in Redmond is Don Mattrick, himself a former EA president. "Mattrick was the founder of Distinctive Software Inc., which operated as a private company from 1982 until its merger with EA in 1991. Mattrick held various senior positions within EA, most recently as president of Worldwide Studios, until his resignation in February 2006. In February 2007, Mattrick began working with the Entertainment and Devices Division at Microsoft as an external advisor. 'Peter has contributed enormously to the games business since joining Microsoft in 2003 and we are sad to see him go,' said Robbie Bach, president of Entertainment and Devices Division at Microsoft ... While Peter will certainly be missed, we are delighted to have one of the industry's most talented and passionate veterans on board to lead the business.'"
Will Microsoft pull the plug on the whole Xbox mess? With the billion dollar 360 defect fiasco the Xbox project is now around 7 billion in losses. Anyone who reads Microsoft employee discussion boards knows that the Xbox has become the company's most hated product and the calls for heads to roll after the shocking billion dollar repair bill were loud and clear from everyone. It should be a surprise that Moore got the boot out the door.
After all that money wasted in the console market Microsoft has failed to gain any ground or attract gamers outside of the first Xbox's userbase. The 360 is just as dead as the first Xbox in Japan. In Europe the 360 is doing very poorly everywhere except the UK. And the US the 360 is doing roughly the same. Those who think Microsoft doesn't care about billions in losses and are willing to throw money forever at the Xbox project are going to be in for a huge shock when Microsoft axes the whole Xbox mess and returns to focus on migrating pc developers over to Vista exclusive games.
Hardware is clearly an area where Microsoft has no business trying to compete in.
"I'm thrilled to join an already strong team that's delivering truly amazing gaming experiences to customers around the world. I've never been more excited about the future of the industry, and firmly believe Microsoft will lead the next great innovations in gaming."
Big apple, new Yorik, undig it, something's unrotting in Edenmark.
He left MS for EA!? Wow. Things must be really bad at Microsoft these days. This is the company that got hit with that class action lawsuit by its employees for overworking them without overtime pay.
9 is more than half of 10. More to the point, it is extremely likely that the Wii will overtake total 360 sales in the next couple years.
The cake is a pie
Most of MS's problems have stemmed from Moore sticking his foot in his mouth. He has been easily one of the most arrogant "leaders" in the gaming business rivaled only by Kutaragi. Most of MS's pr problems can be directly related to some boneheaded comment by Moore from "3% failure rate" and "Y'know, things break" to this weeks remarks about wanting Final Fantasy as a 360 exclusive. I am guessing the "personal reasons" are more in line with Kutaragi's dismissal from Sony. I certainly dont see this as the "put a fork in it" end of the 360 that the Sony fanboys are wishing for, if anything it will give MS an opportunity to right the ship and perhaps get someone in that position that can be a little more in touch and sympathetic to their audience. I nominate Hironobu Sakaguchi he is already in house and could be the "face" that would give MS an inroad to the Japanese market that has been impossible to attain.
No, to be a success it needs to make money. Either hardware alone or hardware+softwware would be acceptable. So far, its a ridculous failure, losing several billion dollars.
I still have more fans than freaks. WTF is wrong with you people?
Erm, MS is only about ~$300 million in losses for their gaming division, and turning a profit overall as a company.
Sony is suffering around ~$600million losses for their gaming division and is $11.3 billion in debt overall as a company.
Oh well, guess you'll be the one crying now.
Shareholders are the ultimate customers of the company and MS needs to do something to show that they are fixing the problems. They need to demonstrate a "correction" of sorts.
MS has too much invested in Vista. However, Zune and Xbox (which have bled cash badly) can be sacrificed. MS needs to do this to be perceived as a worthwhile investment.
Engineering is the art of compromise.
Hmm Kutaragi stepped down after a series of blunders as well...
Billions in Losses. Every PS3 overpriced by design. Only 3.6million sold since launch. A sell-thru rate on Bluray disks at less than 2 per player sold. Little Big Planet looks like a boring tech demo rather than a game.
Stick a fork in the miserable disaster that is called Playstation3, it's done.
Not that any of that means anything...but its real easy for a few words to be change the perspective to that of the other sides fanboys. Both have had their problems and probably will continue to, what I don't get it why its so important to some people to have one fail?
Yeah, the only console that looks healthy financially is Nintendo's Wii which most people had written off for dead. They make money on every console. Time will tell if the lack of good games will be resolved.
Well, there's spam egg sausage and spam, that's not got much spam in it.
Anytime you find yourself writing a letter to explain how a screw-up of yours is going to cost your employer a billion dollars (with a "B"), it's probably a good time to dust off the old resume...
Read my blog.
My brain said months and my fingers typed years.
The cake is a pie
I've never had a problem with my 360. Not a glitch or a freeze at all. HD-DVD isn't dead, and Microsoft doesn't have very much to lose if it does die. Lots of my friends would argue that Halo3 is a "last gen looking dud". I really do enjoy my 360, and especially have a blast on Xbox Live. I had a lot of fun with my original xbox, too.
I'm just trying to point out that, from a consumer viewpoint, the Xbox isn't dead and I hope it doesn't go away.
The billions of dollars that MS has lost on the Xbox does still have the chance to redeem themselves. It's absolutely sizable, but it's still an investment. MS currently holds a substantial lead over Sony, although that could change.
Even if you think things look grim for the Xbox, it's not going away overnight. Worst case is that they decide to not release another console after the 360.
Which is the most successful: Zune, Vista or the 360? Even the latest Office software got lukewarm reviews.
I've played with dev kits for the 360 and they're really a dream to use. (No I don't work for MS or any affiliated company) All the developers I spoke to wanted to work on a 360 more than anything else because they did a great job of making the system easy to develop games on. (in fairness, I haven't gotten to see a Wii dev kit, but I heard nothing but complaints from the people using PS/3 kits)
Some one else said that MS gave things until the 3rd generation. That would imply all the rest of this gen and a whole additional gen before MS pulls any plugs. Besides, against the Wii the 360 has fabulous staying power. By the time the next gen comes around they'll be able to make a 360 for $3.60.
Plus, Sony will be bankrupt by then. Sure the Wii is doing better than expected, but the whole goal of the 360 was to get the PS/2&3 out of their way. It has succeeded.
The way Sony bet their entire company on the PS/3 just to watch the consoles sit in stacks beside the "Wii Sold Out" signs mean the imminent bankruptcy of Sony as a company. Pity all the Japanese that have the retirement funds wrapped up in Sony investments because that company is going to die. In fact, I will posit that if the PS/3 doesn't pull itself together this Christmas, Sony will implode to a tiny shell of its former self by the following Christmas. They've invested too much into the product for basically no return. It makes the 360 look like a gold mine in comparison.
So we'll have Wii60 for most of ten years. Sony will be out of the market. Some other pointless companies will make another try and fail. In the end it will be Nintendo, MS on Console and MS on PC.
The Wii is NOT a replacement for the 360. The systems cater to differen audiences. With the PS3 a colossal bomb, console gamers have only one traditional system to turn to.
Don Mattrick the former President of EA studios has been named to replace Peter Moore. Don starts next week, Moore starts in his new position at EA as head of EA Sports in September. Head of the an entire console to head of one division of a game company? Sounds like a step down to me.
8 2.html
For those that dont remember Don Mattrick was the President when EA was still in the black, though he was also the president through the overworked programmers scandal. Mattrick has worked as an advisor to Robbie Bach the head of MS's entertainment divison for the past year.
More Info http://www.forbes.com/feeds/ap/2007/07/17/ap39235
With Bach taking over so quickly, it certainly sounds to me like this has been brewing for a while.
Not that I like either console (I'm a PC gamer with an eye on the Wii), but some of your counterpoints don't really compare.
The Xbox division has lost billions. Not just the 360. Both consoles lost/are losing money. The Playstation brand on the other hand is making lots of money on the PS2 right now. Remember, the PS2 is still outselling the 360.
You can't really compare overpriced by design and defective by design. Granted the defective thing might be a little exaggerated, but just because both are design issues, doesn't mean they'll cause the same problems, or even the same type of problems, or even problems at all.
As to sales, worldwide the PS3 is doing about as well as the 360. if you align the launch dates.
Bluray is also doing slightly better than HD-DVD so that argument is out. But even then, most Bluray players sold are the PS3, which is a game console, which probably has a higher rate of non-bluray player usage than a stand-alone bluray player. So it skews the disks per player sold.
Lastly, don't discount tech demos. That's what Wii Sports is. It's bundled in the US, but it is sold separately in Japan, and it's still selling fast. Some times what looks like a tech demo is what people want.
Stop Global Warming!
Just say no to irreversible processes!
So when is he getting the Madden tattoo?
The Farewell Tour II
The fact is that only a very small number of XB360s fail
"Very small"? Denial ain't just a river, you know.
MS themselves admitted the number of faulty systems is "meaningful" (their word, not mine) and that the flaws in the system were "significant", were "design issues", and were "multiple" in number. You can read all this yourself straight from the horse's mouth here. Read that call transcript and educate yourself. These are things MS cannot lie about lest they risk a shareholder lawsuit and SEC investigation.
AND, they have handled their defective units in a far more upright fashion than other companies have done, I might add
Nintendo recalled every single Famicom on the market when they realized it suffered from a design flaw. They waited 6 months before they were confident they had fixed it, then they re-launched the system.
A 3 year warranty on a system with admitted significant design flaws (again, MS's own words) is a "far more upright fashion" of dealing with the problem than a recall?
MS will laugh all the way to the bank
To the tune of $7 billion in losses and counting, I guess.
Peter Moore was fired. I like the guy, but he was fired, and probably over the RROD fiasco.
Erm, MS is only about ~$300 million in losses for their gaming division, and turning a profit overall as a company.
Sony is suffering around ~$600million losses for their gaming division and is $11.3 billion in debt overall as a company.
MS is at $7 billion in losses and counting for their gaming division.
Sony posted a loss in one quarter with their gaming division, but overall are in the black by more than $9 billion.
In addition to that, "debt" has nothing to do with whether or not a company is profitable. Sony cleared a little more than $2 billion in net profit each of the last 3 years.
They still have nearly 3x the install base of the ps3, a huge lineup of games coming in the next 6 months and a 65nm redesign that will allow the to finally be profitable on the hardware side. Ditching the Zune i can see, but ditching a product that is just edging towards a profit? And shifting towards a market that is shrinking by the day is absoutely absurd.
You can say they cater to different audiences, but Microsoft doesn't want to settle for anything less than #1 this time around and they are failing at achieving that. The Wii is becoming the Ipod of the video game market and there isn't any amount of money short of giving away 360's(which they can't anyhow due to anti-trust/dumping issues) to change that.
If thats the case they should probably just drop Halo3, Blue Dragon, GTA IV and whatever else is in the pipe and focus on more things like the Viva Pinata party game, Uno and Sceneit! There is still the whole gaming market to think about, most gamers this generation will buy two or even all 3 consoles. If the neither the ps3 or 360 achieve numbers close to the previous generation you might as well concider console gaming dead. The biggest problem I see with the wii is the number of games purchased per console owned. I know six people near me with Wii's, none of them have as many games as I do and I only have three (Zelda, Wiiplay and Wiisports). Most of them are totally happy with Wii Sports.
I had the honor of working on Don Matrick's property when he lived in Vancouver for a lawn/gardening company. He had a huge(I mean city block huge) plot of land near the University, really beautiful and scenic, looking onto the ocean. I only met him once or twice myself, but he was always really polite and courteous, a stand up sort of fellow. Can't help but add class to Microsoft's public image. Kudos to him.
They still have nearly 3x the install base of the ps3, a huge lineup of games coming in the next 6 months and a 65nm redesign that will allow the to finally be profitable on the hardware side. Ditching the Zune i can see, but ditching a product that is just edging towards a profit? And shifting towards a market that is shrinking by the day is absoutely absurd.
And still several billion in the hole. They may get lower turn over and better thermal efficiency from the 65nm fab but will it make enough of a difference to share holders? because MS doesn't especially give a fuck about you or me (neither does Sony or Nintendo), they only care about our money. The 360 hasn't edged towards profit due mainly to design flaws and their made cheap and break easily. They know once the word gets out it would fuel an exodus to the wii for the main stream and to the PS3 for the hardcores. They wisely extended all warranties to blunt the PR mess their high fault rate would cause. Unfortunately it now makes them further in the hole.
"There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
Isn't it just possible that EA offered this guy a higher salary than he was earning at Microsoft? Maybe he gets to work from home. Maybe he just doesn't like the weather in Redmond. Just because a guy leaves a company doesn't inherently mean anything significant. If the success of the Xbox360 is dependent on whether or not Peter Moore remains at Microsoft then they've got some serious issues.
Sure, His Voluntarily exit is just as likely that Steve Ballmer making significantly less then John Riccitiello.
"There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
It's no secret that sales on pc games are on a downward spiral while sales on console games reach new heights every year, and in my eyes it looks like Microsoft is going to depend on their xbox brand if they want games for Windows Vista. Some games like Mass Effect (and KOTOR before it) are already going exclusively for consoles, atleast in the beginning; but if it wasn't for the 360 I think you'd see many of the games that have become cross-platform inorder for them to reach a wider audience going exclusively for the PS3.
:p Of course I might be the only one who thinks that way and thus completely wrong about Vista depending on the Xbox; but I doubt it.
The 360 is going to be a rather wonderful tool for Microsoft gaming since it's now possibly to play with Windows Vista because Live works on both systems. One example being Age of Conan which might get cross platform servers allowing console gamers to play with their pc gaming friends - something that none of the other Consoles will offer anytime soon.
"So what, if it wasn't for the 360 all the freaks who got it would be playing on Windows." you might think, and you might be right - but I know that I personally prefer gaming on a console because of the whole Sofa aspect and if Microsoft had axed the xbox brand early, never releasing the 360 I'd own a PS3 instead now.
Ooh nice. I too was wondering how they'd laser up that GTA job. Maybe "Get The Sims IV"?
The timing of Moore's departure makes it seem pretty likely that the Billion Dollar Rebate was the culprit. That said, It's a not totally fair to lay the blame squarely at Peter Moore's feet. He didn't design the thing, and he wasn't in control of the division when the flawed design was rushed out the door. You could just as easily blame J. Allard. Maybe they fired him, but it's equally likely that the constant xbox problems wore him down to the point to where he decided he'd had enough.
Either way, Microsoft seems to have a problem being a leader. When they're in 2nd place, they have no problem with focus or drive, but once they gain the lead they just fall apart. Take IE for example. Development occurs at a breakneck pace until IE4 reaches 95% market share, then they just stop.
For a time, it seemed like Microsoft was firing on all cylinders with the 360. Now that they are in the lead position, it's all falling apart. They are diluting the focus of the product (it's a game player, no, it's a media center, no, it's an IPTV box, no, it's a video rental program) and confusing the market (360, 360 premium, 360 elite, 360 Halo edition...).
Apparently if you pause Rock Band in the middle of a trade show you've only got a week to have your resignation on Bill's desk.
_ Peter_Moores_Rock_Band.html
http://www.g4tv.com/e32007/blog/post/677245/Watch
Maybe if he were better at the game... maybe that's how positions actually get decided at Microsoft now, Rock Band Tournament.
Wii and 360 are going after the same consumer money and the same game publisher money. If I'm going home to play Mario Strikers instead of Fifa (or whatever) on the 360, then the Wii definitely replaced my 360. There are people who would buy a 360, but not a Wii, and there are a huge number of people who would buy a Wii, but not a 360, but there is also a lot of overlap in the two target audiences.
The 360 and the Wii aren't competing on the same level as the 360 and the PS3 are competing, but there's definitely some competition between the two.
The fact is that Microsoft wrote off enough money to fix every 360 ever sold.
I'm not a Sony fanboy. In fact, I think the PS3 is an overpriced, underperforming, oversized piece of crap with not enough games and lots of crappy ports. Yet I bought a PS3 instead of a 360, and one of the reasons is the fact that I'm not going to pay for online gaming.
Why? I don't play a lot of online games. In fact, I play a few hours of online games a month. When Mario Kart DS came out, I played that for a week or so, until everyone else was so good that I couldn't win anymore. When Mario Strikers came out, I played a bunch of online matches. When Motorstorm came out, I drove a few online races.
I don't have time to play games too often anymore. I can't compete with all the people playing Halo. I like online gaming, but I don't have the time to play it often, or be good enough to compete after the first few weeks a game is out.
And I'm not going to pay 50 or so bucks just so I can play 20 or 30 hours of online games a year.
I imagine most gamers actually behave similarly to me. I know a lot of gamers, but I don't know anyone who puts a lot of hours into online games. By charging for online gameing, Microsoft actually makes sure that people like me - people who want to play a few online matches from time to time, but not regularly - simply won't even consider the 360.
I think keeping the 360 is just throwing good money after bad money, and Microsoft probably knows it.
I think to figure out what is going on with the 360, we have to go back a bit and consider why Microsoft launched the Xbox. I think the reason was that they were afraid of Sony gaining a foothold in content distribution. Microsoft made a strong push towards DRM, hoping to get content providers to distribute content using Microsoft's technologies, therefore helping its Windows monopoly. Meanwhile, Sony was incredibly successfull with the PS1 and then the PS2. Microsoft must have perceived that as a threat: There's somebody else who can distribute content for content providers into every home. And even worse, their box is hooked up to a TV, where - surprise - most people actually watch their content.
So Microsoft must have decided that, in order to ensure their content distribution monopoly, they needed to get rid of Sony by building their own box sitting in people's living rooms. And they did. But what they did not notice was that Sony wasn't the only competitor. While Microsoft was busy going after Sony, Apple started using Windows. They managed to put iTunes on a huge number of Windows computers, thereby usurping Microsoft's DRM monopoly.
So in a way, the Xbox is obsolete. People are using iPods and iTunes and maybe even AppleTV to get to their content. They aren't using the PS3.
Which leaves us with the question: Does it make sense to keep pouring money into the 360 if the actual threat is the iPod? Microsoft decided to go ahead with the 360, but also start going after the iPod with the Zune. I'm guessing they will keep this strategy for now, but I'm also guessing that Microsoft realizes that
Without DRM, there is no monopoly for Microsoft. Maybe in the end, all that money was wasted anyway.
Holy shit, AC's generate karma now? Screw this posting logged in...
FanFictionRecs.net
Sickening thing is how rich these two and others like them are getting on *failures.* Normal people don't make money for failures - they tend to lose their jobs. What a scheme.
I wrote a computer program called XBOX which displays a few thousnand boxes on the screen every second. Maybe I should be heading Microsoft Games division.
The PS2.
Seriously.
Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
At first I was going to say, "He's the marketer, why would they fire him for a hardware issue?"
Then I realized, this is Microsoft.
Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
Problem 1: Microsoft doesn't "Throw in the towel". To outright admit defeat is something that Microsoft has never, and will never do. If they're convinced the Xbox can't and won't make them money, they'll finish out this generation and then release a console that can't succeed but won't lose them any significant cash, and just fade away.
Problem 2: Everyone's E3 was rather lackluster. Microsoft is not special in this regard.
Problem 3: The Xbox is in the strongest position it ever has been to date, including the recalls and warranty extensions. It's maintaining a lead on the competition (the PS3) that was supposed to beat them from day 1. Pulling out now would be passing up the best opportunity Microsoft has had thus far, while simultaneously giving Sony a free ticket to success.
Problem 4: Microsoft has Halo 3 on the way in about 2 months. Shareholders might be mad now, but September is bound to show some pretty numbers that will supplicate them.
We'll see if Microsoft does, but I find it highly unlikely that they'll fold at this point.
Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
Despite all the doomsaying and ranting it turns out that he probably did it for the money; as Joystiq.com is running an story saying the following:
An SEC filing has revealed that EA dropped a $1.5 million bonus on Peter Moore to help lure him into heading up their sports division. The Tattooed One got the check in recognition for the money he'd be missing out on by leaving Microsoft, though he'll have to give it all back if he leaves EA in the next two years. This is in addition to a more than half-million dollar annual salary.
Being head of EA sports is not really a bad move either and likely quite the challenge if he is to reinvent their image in the public eye.
I agree with everything you said, but I still feel it is a little early to count the PS3 out. If you look at the sales based from start date, the PS3 is doing the same numbers as the XB360. Only the Wii is killing... This Xmas/early spring will really tell the tale. http://www.vgchartz.com/hwcomps.php?cons1=Wii®1 =All&cons2=PS3®2=All&cons3=X360®3=All&align= 1
I'm still liking the XB360 as I've enjoyed my original XBOX so very much. I plan on getting one after the die shrink and when it is cheaper...
For the record, I didn't say that the PS3 could be counted out. I simply stated Microsoft is in the best position they ever have been in this industry, and have a lot of opportunities moving forward. Both the PS3 and the 360 are selling at about the same rate globally, though one beats the other depending on where you look.
Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
Yep, sorry!