Impending Layoffs Hit Microsoft’s Xbox Division
A recent report by Bloomberg’s Jason Schreier indicates that Microsoft is bracing for another significant round of layoffs within its Xbox division. Although exact numbers remain unspecified, the report characterizes the cuts as “substantial.”
Timing and Scope of the Cuts
According to Schreier, the layoffs are expected to be announced next week, coinciding with the conclusion of Microsoft’s fiscal year on June 30. Such announcements of workforce reductions have historically occurred around this time of year, making it a period of heightened anxiety for employees within the Xbox ecosystem. The layoffs are anticipated to affect all aspects of the division, including various first-party studios.
Recent Layoff Trends in Gaming
This forthcoming reduction would mark the fourth significant layoff event for the Xbox team in a brief span of 18 months. The series of layoffs began in January 2024 when Xbox eliminated 1, 900 jobs, primarily affecting individuals from Activision Blizzard King following the conclusion of Microsoft’s acquisition.
Subsequent to that event, Xbox closed four ZeniMax studios—Arkane Austin, Tango Gameworks, Roundhouse Studios, and Alpha Dog Games. Further layoffs at Activision Blizzard followed, impacting around 400 developers from California-based studios.
The Broader Industry Context
These layoffs come as part of a troubling trend that has plagued the gaming industry since 2022. In a time when game developers have historically faced job insecurity, thousands have been laid off as companies adjust to financial losses attributed to misguided investments during the pandemic boom.
Major players in the industry, including EA, have also implemented cuts this year, indicating that the trend may not abate in the near future. Just yesterday, the studio Hypixel announced the cancellation of Hytale following an extensive development period, adding to the growing list of unfortunate news in gaming.
A Hopeful Outlook
As this new wave of layoffs looms, many can only hope that those affected find new opportunities swiftly. The ongoing developments emphasize the need for vigilance and adaptability in an ever-evolving industry landscape.
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