Microsoft, the tech giant, is tightening its belt once again with more cuts to staff at its Xbox gaming division, according to an announcement on Thursday. This action will result in 650 layoffs and bring the total number of job losses to 2,550 since Microsoft’s acquisition of Activision-Blizzard in October 2023.
Impact on Corporate and Support Roles
The recent wave of layoffs will primarily affect corporate and support roles. Contrary to the concerns of many gamers, the company assured that no studios are being closed and no games or game systems will be cancelled due to the staff cuts. Lamentably, Microsoft had to shutter Tango Gameworks and Arkane Austin in previous layoff rounds, which did affect its forthcoming titles.
Phil Spencer, Chief Executive of Microsoft Gaming, expressed his thoughts on the situation in an email. “Today is one of the challenging days. I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players. We appreciate your support as we navigate these changes and we thank you for your compassion and respect for each other.”
High Profile Layoffs
Even though Microsoft’s layoffs have drawn a substantial amount of attention, due to the number of people impacted and the company’s high-profile standing, it’s not the only game maker grappling with hardships. The video game industry seems to be in a slump following a tremendous surge in consumer interest during the pandemic.
Unsettlingly, more than 11,500 people in the video game industry have lost their jobs in 2024. This figure outpaces the total number of layoffs in 2023 (10,500) and 2022 (8,500).
Xbox Sales and GamePass Subscriptions
Microsoft’s Xbox sales have declined significantly in the latest financial quarter. However, the tech giant has shifted its focus more towards its GamePass game streaming service in the past year. The service saw a price increase in July and reported 34 million subscribers in February.
- Microsoft is laying off 650 employees from its Xbox gaming division.
- No studios are being closed and no games will be cancelled due to the layoffs.
- More than 11,500 people in the video game industry have lost their jobs in 2024.
- Microsoft’s focus has been more on its GamePass game streaming service than on Xbox hardware.
As the situation continues to evolve, it will be interesting to keep an eye on Microsoft’s next steps and the potential impacts on the gaming industry as a whole.
