World of Technology: 07/19/14

Saturday, 19 July 2014

Microsoft closing Xbox Entertainment Studios

As part of its massive round of layoffs, Microsoft is closing Xbox Entertainment Studios (XES), the wing dedicated to producing original video content for the Xbox platform. All is not lost however, as Halo: Nightfall , the Spielberg-produced Halo TV series and Signal to Noise (whose first episode chronicles Atari's rise and fall) will all still continue as planned. We were also told that the studio's Nancy Tellem along with Jordan Levin and "some" of the XES team will remain on staff and working on the aforementioned in-production programming. In an email today (pasted in full after the break) Xbox head Phil Spencer notes that change is never easy, but he believes the studio closure will help the company "better align with longterm goals." We've reached out to the affected studios about what this means for them and will update this post should we hear back.

Recode's sources paint a different picture, however, saying that the studio was disorganized and lacked a fully established business model. Both of which turned off any studio partners and thusly complicating securing any more premium content.

"I hope you have had a chance to read today's mails from Satya. I wanted to take a moment to share a few thoughts on what this means for our team and some of the changes we are making as a result.

In last week's mail outlining some of the steps towards creating the culture and organization to bring our ambitions to life, Satya called out the strategic importance of Xbox as a strong consumer brand, a creative center for gaming and a leader in bold innovation. Every member of Team Xbox should be incredibly proud of the impact and reach your work has within the walls of Microsoft, with our developer community and most importantly, with consumers.

Microsoft is the productivity and platform company for a mobile-first and cloud-first world, and games are the single biggest digital life category in a mobile-first world. Success in this category, by growing a robust Xbox business, brings additional value to Microsoft. I have stated this before, but for Xbox to be successful, we must remain committed to being a consumer-driven organization with the mission of meeting the high expectations of a passionate fan base, to create the best games and to drive technical innovation.

As part of the planned reduction to our overall workforce announced today and in light of our organization's mission, we plan to streamline a handful of portfolio and engineering development efforts across Xbox. One such plan is that, in the coming months, we expect to close Xbox Entertainment Studios. I would like to take this opportunity to recognize the accomplishments from the entire team in XES. They have built an impressive slate of original programming and pioneered interactive entertainment on Xbox, such as the innovative reality series 'Every Street United' that succeeded in uniting audiences around the globe during the recent World Cup.

I am pleased that Nancy, Jordan and members of the XES team remain committed to new, original programming already in production like the upcoming documentary series 'Signal to Noise' whose first installment takes on the rise and fall of gaming icon Atari and of course, the upcoming game franchise series 'Halo: Nightfall,' and the 'Halo' Television series which will continue as planned with 343 Industries. Xbox will continue to support and deliver interactive sports content like 'NFL on Xbox,' and we will continue toenhance our entertainment offering on console by innovating the TV experience through the monthly console updates. Additionally, our app partnerships with world-class content providers bringing entertainment, sports and TV content to Xbox customers around the world are not impacted by this organizational change in any way and remain an important component of our Xbox strategy.

Change is never easy, but I believe the changes announced today help us better align with our long-term goals. We have an incredible opportunity ahead of us to define what the next generation of gaming looks like for the growing Xbox community. I have a great deal of confidence in this team and know that with clarity of focus on our mission and our customers we can accomplish great things together. We already have.

Thank you again for all you do for Xbox.

Phil

Microsoft will abandon Nokia's Android smartphone project

It's a day of upheaval over at Microsoft as the company has announced that it'll cut 18,000 jobs in the near future. At the same time, however, Satya Nadella has cast doubt on the long-term future of Nokia's X series of Android-powered smartphones. In an email, the Microsoft CEO says that the company will refashion "select" Nokia X designs as Lumia smartphones that run Windows Phone. There's no word on if the other handsets in the range will continue, but it seems unlikely given that the phones run Android, Microsoft's biggest rival in the mobile space. If you're still on the hunt for one of these devices, don't worry, as Stephen Elop has added that the company will continue to support and sell the existing range of X series devices.

Microsoft cuts 18,000 jobs as part of its largest layoff ever

Microsoft today announced that it's cutting 18,000 jobs, the biggest round of layoffs in its history, as part of ongoing restructuring efforts. In a release, the company says that Nokia's Devices and Services business, which it acquired for $5 billion last year, will be most affected, with 12,500 "professional and factory positions" expected to go by the end of the year. In an email to employees, Microsoft CEO Satya Nadella explains that the company's new strategy is designed to make it "more agile" moving forward, allowing teams to work more freely.

Nadella also hinted that Microsoft could end development of Nokia's Android-powered X smartphones by shifting "select Nokia X product designs to become Lumia products running Windows." As for the Xbox and Surface divisions, they'll see "limited change," as the company intends to continue building on plans it implemented earlier in the year. Nadella believes today's cuts will go some way towards helping Microsoft realign itself, allowing it to pursue its goal of innovating both in mobile and the cloud.

Nokia's MixRadio to be spun off as its own music service

The restructuring plans from Microsoft caused a ripple effect throughout the company, with its recently acquired Nokia Devices and Services business being the most affected one. Now, as part of this, The Guardian reports that Nokia's MixRadio music-streaming app is expected to spin out and live as a standalone service. Essentially, this means MixRadio will no longer be limited to Microsoft's platform, though it's still going to come pre-loaded on Windows Phone handsets made by Nokia. Not that the world needs another streaming service for tunes, but the eventual spin-off would give the MixRadio app the chance its current features to other platforms such as iOS and Android. At the moment, however, there are still things to work out: "I've been meeting with potential investors around the world in the last few weeks. We have very strong interest from investors in the US, Europe and Asia, and we remain open for further discussions," Nokia's Jyrki Rosenberg, VP of Entertainment, told the British publication.

Netflix already stopped mailing DVDs on Saturdays, but you probably didn't notice

The USPS may not have gone forward with its plans to kill Saturday mail delivery, but Netflix isn't waiting. A few customers have noticed it's no longer processing shipments on Saturdays, opting for a five day schedule instead. Company spokesman Joris Evers tells Engadget that it's been transitioning in that direction over the past year and ended Saturday processing (usually a low volume day) entirely in early June. Longtime subscribers may remember that originally Netflix was a five day operation, and it only shipped or received DVDs and Blu-ray discs on the weekend over the past five years. These days, most of us are streaming so with all those options there's less pressure to get an item in the mail, but of course not everyone is happy. When weekend mail delivery came close to ending last year (various government committees have opted to keep it going), an AParticle noted that it could actually save Netflix money by reducing the number of deliveries for heavy users -- because of its flat rate, they're actually less profitable. Now that competitors like Blockbuster are out of the way, there aren't many other options which is probably also a factor. Of course, we can't blame Saturday deliveries (or the lack thereof) for this Hot Rod DVD that's been sitting on the coffee table for as long as we can remember.

Netflix is testing a private mode that keeps your watching habits under wraps

Netflix Garners Two Top Show Nominations With 'Cards,' 'Orange'

If you've ever wanted to keep those embarrassing Netflix choices from family members or your social-networking pals, you might soon be in luck. According to the folks over at Gigaom, the streaming subscription service is currently testing a "Privacy Mode." This means that viewed titles won't appear in that Recently Viewed section on the main screen and they also won't factor into future recommendations. Select users across all of the company's locales are privy to the feature as part of the trial. Of course, there's a chance that it may never become a staple in the settings menu -- that's dependent on the results of the experiment.

The Top 15 Smartphones You Can Buy Right Now

OK, so it usually doesn't cost as much as a car, but a smartphone is still an important lifestyle purchase. And it will probably be at your side 24/7 (if you're anything like us).