US EditionAnalysis: Reports of More Gaming Layoffs at Microsoft Spark Questions About Future of Xbox
- In 2024, Microsoft conducted several rounds of layoffs impacting roughly 7,000 employees, with significant reductions occurring within its gaming sector, including staff from the Bethesda studio, the Xbox team, and Activision Blizzard.
- These layoffs followed Microsoft’s $69 billion acquisition of Activision Blizzard in October 2023 and occurred amid efforts to streamline operations and respond to shifting technology demands, including AI impacts.
- In May and early June, Microsoft laid off over 2,300 Washington-based employees, mostly non-managers and software engineers, alongside studio closures such as Tango Gameworks and Arkane Austin.
- Phil Spencer highlighted the responsibility of managing a sustainable and growing business within Microsoft, stressing ongoing investment in Xbox even amid layoffs, and noted that Xbox content and services revenue rose eight percent compared to the previous year.
- The ongoing cuts suggest Microsoft aims to optimize its gaming business structure for future console development while facing revenue pressures and preparing for another round of layoffs before the fiscal year ended June 30, 2024.
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22 Articles
22 Articles
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5
Center
2
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Coverage Details
Total News Sources22
Leaning Left5Leaning Right0Center2Last UpdatedBias Distribution71% Left
Bias Distribution
- 71% of the sources lean Left
71% Left
L 71%
C 29%
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