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the myth of the good tech giant (analognowhere.com)
submitted 1 year ago by to c/programmer_humor@programming.dev
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https://analognowhere.com/_/oumuti/

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[–] 9 points 1 year ago (7 children)

What do you think laying off your workforce does? These are the people who produce the things that make money

For a clear cut example, Microsoft and gaming. They lay off entire studios the moment they release a hit

It costs like 18 months+ of salary to replace a role like that, and you'll have to pay them more. It'll make you a bit more money next quarter... But in 2-5 years when there's no new game?

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  • [–] -2 points 1 year ago (6 children)

    Microsoft is doing pretty well so I wouldn't call it "dismantling", it seems to be working for them.

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  • [–] 5 points 1 year ago (5 children)

    Microsoft is dismantling itself to keep "doing well". That's my point

    Their gaming division keeps acquiring and killing game studios. They're killing off consoles, instead they're going to sell prebuilds running windows. They're scaling it all way back and releasing their exclusives, letting steam run the infrastructure, and milking all of their current IP, but not really making more

    They've ended support for a ton of different product lines. Azure is a mess. Their desktop market share is falling too.

    They're all in on AI at this point, literally every tool they offer has it now. It's not even opt in, it doesn't require an account anymore... They're desperate to inflate the numbers so they can project growth a little longer

    What do you think happens when you continuously lay off your workforce and kill projects? When you stop actually doing things, and run a company based on speculation?

    Eventually, the bubble pops.

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  • [–] 1 point 1 year ago* (4 children)

    Microsoft for 8 years now is a company that sells Linux and opensource.

    Non of their divisions you mentioned were profitable for many years now(especially Windows), just look at their yearly reports. Only logical to get rid of them. Don't agree with your Azure statement, don't mind me, numbers don't agree with it.

    I don't get why you wrote so much about gaming, Microsoft never was a gaming company. And frankly nothing important for gamers was lost with them buying those empty shells of game developer companies, then shutting them down.

    I can agree on the AI hype especially with recent github news. But those are recent, we'll have to see if that was bad or good decision.

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  • [–] 2 points 1 year ago (3 children)

    I don't know how else to explain it to you. Microsoft is doing well on paper

    These unprofitable divisions? This is the result of the layoffs. This is what happens when you stop doing the thing, and you start living in speculation land

    Azure is a mess propped up by AI. The numbers don't account for shuffling money around. It's related to why every Microsoft product has ai shoved into it

    And I'm keep bringing up gaming because their gaming division is the most egregious example of what I'm talking about. They're the third largest game publisher, and they've played a huge part killing AAA gaming. And in doing so, they've killed their own revenue stream

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  • [–] 1 point 1 year ago (2 children)

    You explained it quite well, I just didn't think you were serious.

    Let's go back to my original question. A company that's dismantling itself for a quarterly profit. Obviously Microsoft doesn't fit since they are doing it for many years now and are still going strong even if just on paper like you say.

    So according to your analysis when will it be dismantled? Will they go down in 3 months as a punishment for the latest quarterly profit? Maybe a year? 5 years? Will it happen in this century?

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  • [–] 1 point 1 year ago (1 child)

    It's going to come to head in the next 5 years. Before 2030 for sure. Maybe even next year. Depends on how quickly the collapse happens - my bet is on painfully slow. Just an inevitable reality, slowly playing out year over year

    We're in a bubble. Obviously. Pay attention. The speculation doesn't line up with reality. Eventually, it will reconcile with reality

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