Xbox Series X game console (Image source: Microsoft)
As part of a strategic realignment, Microsoft has laid off an additional 650 employees from its gaming division, just as several game studios, including Redfall developer Arkane Austin, shutter operations. This round of layoffs adds to the almost 2,000 job cuts affecting Activision Blizzard and Xbox employees earlier this year.
While artificial intelligence is currently the darling of the tech industry, attracting vast amounts of attention and capital, the gaming sector isn’t faring as well. The turmoil for Microsoft’s gaming division began earlier this year when approximately 1,900 employees from Activision Blizzard and Xbox were let go. Following these layoffs, several gaming studios ceased operations. Now, Microsoft’s focus has returned to its own gaming division, resulting in the reduction of 650 more roles.
In an internal memo released by Xbox chief Phil Spencer, he explained that these layoffs are part of the effort to streamline the organizational structure post-acquisition and position the business for long-term success. The memo highlighted, “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long-term success.”
This recent development follows Microsoft’s monumental $68.7 billion acquisition of Activision Blizzard, a deal that required approvals from both UK and US regulators. Spencer assured that affected employees in the US would receive comprehensive exit packages that include severance pay, extended healthcare, and outplacement services. However, the specifics of the exit packages for employees in other regions will vary by location.
On an optimistic note, Spencer emphasized that no game studios are being closed and no games, devices, or experiences are being canceled at this time.
Additionally, Xbox gamers can take advantage of a significant discount on the Halo Infinite Standard Edition for Xbox Series X and Xbox One. The game is currently available at 55% off, bringing the price down to $26.99 from the original $59.99.
These developments paint a mixed picture for Microsoft’s gaming division, which continues to navigate a challenging landscape while striving to maintain its robust gaming portfolio.
