New Title: The Changing Landscape of the Gaming Industry: Microsoft’s Recent Workforce Reductions
Microsoft announced significant layoffs in its gaming division, affecting approximately 1,900 employees, including teams from Xbox, ZeniMax, and recently acquired Activision Blizzard, according to a letter from Phil Spencer, CEO of Microsoft Gaming, to employees on Thursday.
The layoffs will impact 8.6% of the employed workforce in the gaming department.
According to Spencer, the management of Microsoft Gaming and Activision Blizzard identified “areas of overlap” between the two companies and agreed on a “strategy and execution plan with a sustainable cost structure” that will support the evolving business as a whole.
Three months ago, Microsoft finalized the acquisition of Activision Blizzard, the producer of “Call of Duty,” for $69 billion, making it the largest acquisition in Microsoft’s history based in Redmond. The acquisition itself faced resistance from regulators.
The Federal Trade Commission attempted to block the acquisition in December 2022, arguing that it would harm competition in the video game industry as Microsoft could make Activision’s games exclusive to Xbox. Ultimately, however, after a district court hearing, the judge sided with Microsoft and Activision, leading to the approval of the transaction.
Microsoft’s gaming division layoffs are part of a broader trend in the industry. Prior to this, Riot Games (530 employees), Electronic Arts (700 employees), and Amazon Twitch (500 employees) had also downsized their workforce.
Furthermore, an internal memo released on Thursday confirmed the departure of Blizzard Entertainment’s President, Mike Ybarra, and the Head of Project Division, Allen Adham. The company also scrapped a survival game titled “Odyssey”.
FAQ Section
1. Who announced the layoffs in the gaming division?
Microsoft announced the layoffs in its gaming division.
2. How many employees will be affected by the layoffs?
The layoffs will impact approximately 1,900 employees, which accounts for 8.6% of the employed workforce in the gaming division.
3. Which companies were affected by the layoffs?
The layoffs affected teams from Xbox, ZeniMax, and recently acquired Activision Blizzard.
4. What was the reason behind the layoffs?
The management of Microsoft Gaming and Activision Blizzard identified “areas of overlap” between the two companies and agreed on a strategy and execution plan with a sustainable cost structure to support the evolving business as a whole.
5. What was the largest acquisition in Microsoft’s history?
Three months ago, Microsoft finalized the acquisition of Activision Blizzard for $69 billion, marking it as the largest acquisition in Microsoft’s history.
6. Did the acquisition face resistance from regulators?
Yes, the Federal Trade Commission attempted to block the acquisition. However, after a district court hearing, the judge sided with Microsoft and Activision, leading to the approval of the transaction.
7. Are the gaming division layoffs part of a larger trend in the industry?
Yes, the layoffs in Microsoft’s gaming division are part of a broader trend in the industry, which has also seen downsizing at Riot Games, Electronic Arts, and Amazon Twitch.
8. Are there any specific details about individuals leaving the company?
An internal memo announced the departure of Blizzard Entertainment’s President, Mike Ybarra, and the Head of Project Division, Allen Adham. The company also scrapped a survival game titled “Odyssey”.
Definitions of Key Terms
- Xbox: A brand of video game consoles created and developed by Microsoft.
- ZeniMax: An American company that produces and publishes video games.
- Activision Blizzard: An American company that produces and publishes video games, including the popular “Call of Duty” series.
- Federal Trade Commission: A U.S. government agency responsible for consumer protection and preventing unfair business practices.
Suggested Related Links
- Microsoft Official Website
- Activision Blizzard Official Website
- Riot Games Official Website
- Electronic Arts Official Website
- Twitch Official Website
The source of the article is from the blog coletivometranca.com.br