The gaming industry is facing severe challenges! Microsoft's Xbox division plans to lay off 650 employees
Microsoft announced that it will lay off 650 employees in its Xbox division, marking the company's third round of layoffs this year aimed at cost control and integrating the $6.9 billion acquisition of Activision Blizzard. According to a memo from Xbox CEO Phil Spencer, the layoffs mainly involve corporate and support functions, and do not affect game, device, or experience positions. The gaming industry is facing challenges, with many major companies like Sony and EA also undergoing layoffs and project closures
According to the financial news app Zhitong Finance, Microsoft (MSFT.US) has announced that it will lay off 650 employees in its Xbox division. This is the third round of layoffs for the company this year as it seeks to control costs and integrate its $6.9 billion acquisition of Activision Blizzard.
In a memo sent to employees by Xbox CEO Phil Spencer on Thursday, it was mentioned that the positions being eliminated are "primarily in corporate and support functions. In today's adjustment, no gaming, device, or experience positions are being eliminated, and no studios are being closed."
It is reported that in January this year, Microsoft laid off 1,900 employees, many of whom were from the Activision Blizzard division and studios, with Xbox employees preparing for further layoffs. In May, the company announced the closure of four studios acquired through its $7.5 billion purchase of ZeniMax, with one of them eventually being sold off. These actions, along with the decision to release some Xbox games on competitors' gaming consoles, have angered some fans of the platform, leading them to question Microsoft's commitment to creating compelling exclusive content.
For the broader gaming industry, this year has been tough as game development costs continue to rise while growth remains sluggish. Major multinational companies like Sony (SONY.US), Take-Two Interactive Software (TTWO.US), and Electronic Arts (EA.US) have all been laying off employees and shutting down large projects. Sony, for example, recently axed a big-budget multiplayer shooter game called "Concord" just two weeks after its release, citing a lack of patience for the slow-starting game.
Microsoft completed its acquisition of Activision Blizzard in October last year, 21 months after the acquisition was announced and following a fierce battle to obtain antitrust approval. This acquisition has brought new content and talent to Xbox, but the long-term return on this deal remains a challenge