Microsoft has announced a new wave of layoffs within its Microsoft Gaming division, impacting around 650 employees. This follows a previous round of cuts several months ago, during which the company laid off 1,900 workers from Activision Blizzard and Xbox, and shut down several game studios, including Arkane Austin (half of Arkane Studios) and Alpha Dog Games.
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In a memo from Xbox chief Phil Spencer, it is revealed that the layoffs were related to the Activision Blizzard deal. He assured that Microsoft would not cancel the release of games or devices in connection with this. The corporation also does not plan to close studios, Spencer assured. The cuts will mostly affect corporate and support workers, and should allow Microsoft to set up its business for long-term success.
In January 2024, the corporation laid off 1.9 thousand employees of Activision Blizzard and Xbox. At the same time, Blizzard president Mike Ybarra and chief designer Allen Adam left. The layoffs then affected about 8% of Microsoft Gaming.
The announced layoffs resulted in the closure of two Toys for Bob studio offices, with 86 workers in Novato and 76 in Foster City losing their jobs. The remaining Toys for Bob staff were moved to remote work.
In May, Microsoft closed four Bethesda studios: Arkane Austin, Tango Gameworks, Alpha Dog Studios, and Roundhouse Games. By the end of the summer, Krafton had bought Tango Gameworks from Microsoft.
The Xbox landscape has been quite chaotic lately, with Microsoft making some puzzling decisions.
The company seems determined to maintain its presence in the console market, especially given its significant investment in game studios. However, there is a sense that Microsoft is unsure of how to navigate this complex landscape. This uncertainty may explain the questionable and indecisive choices they have made in recent years.
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