Bloomberg: Microsoft Plans Major Job Cuts at Xbox Gaming Division

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So, a $70 billion+ acquisition(s) comes with 4+ mass layoffs (probably more coming in the future), in excess of 10,000+ people being out a job, than the ones who initiated those acquisitions, in a span of just a couple of years beyond the close.

Got it.

Sven Vincke, from Larian, gave this speech last year at The Game Awards, exactly for these morons.



And these dumbasses had a front row seat.
 
Here's the thing about Activision generally and CoD specifically:

Its basically what MS always wanted; one brand that does gangbusters across all platforms including mobile, is massively monetized as a live-service and appears endlessly sustainable.

Its MS Gaming's precious.

Next to that, almost everything else is expendable.

I guarantee in a few years Activision will be COD and nothing else.
 


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'For the AI'
 
Seeing some people saying MS should/could spin off the Xbox division. Wouldn't that just mainly be the hardware side? I strongly doubt MS would want to give their gaming IP to a spinoff, or lock licensing rights exclusively to said spinoff.

Without the IP or a strong global hardware presence, an Xbox spinoff wouldn't be worth much, and I doubt Microsoft would pump that much funding into it. OEMs would likely lose interest in making hardware variants as a result, since they won't put in money Microsoft themselves wouldn't want to put into it. Unless these new Xbox devices really hit it out of the park and sell bucket loads, there's nothing much of value an Xbox spinoff with just the hardware could bring to the market.

It'd basically go the way of Turbo Technologies; a spinoff desperately hoping to push excess of hardware and getting little to no funding from the parent company because they can't produce a substantive profit, but part of the reason they're unable to produce a profit is because they don't have enough funding to sell the hardware. On and on it'd go, until the spinoff just shuts down. Plus, I imagine if these Xbox devices do in fact sell very well, Microsoft would be more inclined to keep the hardware side versus spinning it off into a separate entity.

MS should have simply kept every Activision game EXCLUSIVE to Xbox, yes it will hurt the bottom line for some time but will create tremendous value for Xbox for the long run.

They could have also worked on a rival platform to steam with all these games EXCLUSIVE to them. Thats a guaraneed +5m users for CoD alone.

If there was a company that can pull such aggressive strategy, its MS with their deep pockets.

I doubt any of that would've worked. ABK was just too big a purchase to try mass foreclosure strategies with. Zenimax? Sure. In fact, that was the plan initially with Zenimax and it could've worked if Starfied were a better game, if stuff like Deathloop & Ghostwire were Xbox exclusives at launch, if RedFall weren't a complete piece of shit etc. That might've given more leeway to make some of the ABK titles exclusive while doing early access/DLC content exclusivity on bigger IP like COD to Xbox vs. PlayStation. After all, regulators already said they didn't care about foreclosure of COD on PlayStation (well, the CMA and EC said that, anyway).

But since none of that happened, since other XGS games either flopped (Forza Motorsport, Hellblade II etc.) or went MIA (maybe even internally cancelled & rebooted, like with Everwild), since Halo Infinite was a disappointment and so on, all of that compounded into nullifying any real strategy to use ABK titles as leverage to push Xbox hardware exclusively. MS simply made too many mistakes in rapid succession so, by the time the deal looked like it was going to go through, they took off the kids gloves and put on the big boy pants. Had a real talk about what could realistically be done given all the money sunk in the purchase.

And that's why they're doing what they're doing today.
 
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I donn't know who this guy is but God I just want to punch him in the face repeatedly and his stupid "hairstyle" is stupid what is with the little bangs? Don't @ me yes I'm triggered.

Why does he not have eyebrows or eyelids for that matter?
When they put your face on a cookie you can do anything you want
 
My buddy works in their hardware R&D. I hope his job is safe.
 
Is this PlayStation fault?
Job cuts is always sad except if it's just cleaning up mistakes from twisted DEI by removing leftist imposing and pushing some crap agendas. It is not Sony PlayStation fault if Sony is winning. Same with Nintendo. Sony PS may have been polarizing sometimes especially with there gaas blunders and a few woke and dei crap on some games, but still they give us excellent & award winning exclusives and the PS hardware itself are very good. PS already a planted allot of good seed in the past which made the roots strong even with some blunders. PS brand and also Nintendo brand are already pop culture thing with allot of loyal and patient fans. Xbox alienated and turn-off so many fans, and they wasted all there gains from xbox 360 era.
 
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Seeing some people saying MS should/could spin off the Xbox division. Wouldn't that just mainly be the hardware side? I strongly doubt MS would want to give their gaming IP to a spinoff, or lock licensing rights exclusively to said spinoff.

I'll preface this with, while I think they could spin-off the Gaming division as its own company, I doubt think it's probable near-term.

If they were, it would likely be both the development studios and IP, and likely the hardware / ecosystem. If it were to be simply one of those that would be the studios and IP for the large franchises.

Unfortunately for MSFT video gaming is low growth relative to AI/cloud and weights on their quarterly reports. Gaming is also a lower margin business too. The elements that make one successful in entertainment differ from business services.

The hardware and OS and ecosystem/storefronts (and cloud initiatives) seem synergistic with Microsoft overall though so I'm not sure that would be divested/spunoff.

All this is theoretical though. It doesn't seem like there is a lot of value to unlock by spinning the Gaming division off and it's not like MSFT is short on cash that they require what a spinoff could generate. It's more about separating entertainment and its business model from a technology/business services business model.
 
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Turn 10, is one of their core developers. I doubt that they are any kind of danger.
Forza is now forza horizon. Playground games is now the defecto for forza franchise


The last horizon game was played by 40 million people, the last motorsport failed to reach top 10 in npd in its launch month. I feel turn 10 is definitely at risk of layoffs( not studio closure).
 
MS should have simply kept every Activision game EXCLUSIVE to Xbox, yes it will hurt the bottom line for some time but will create tremendous value for Xbox for the long run.

They could have also worked on a rival platform to steam with all these games EXCLUSIVE to them. Thats a guaraneed +5m users for CoD alone.

If there was a company that can pull such aggressive strategy, its MS with their deep pockets.
The courts would not have allowed the merger if they kept Activision stuff exclusive.
 
Forza is now forza horizon. Playground games is now the defecto for forza franchise


The last horizon game was played by 40 million people, the last motorsport failed to reach top 10 in npd in its launch month. I feel turn 10 is definitely at risk of layoffs( not studio closure).
Can't really disagree with anything. Playground is a very talented studio.
 
They already have the content…which is what they wanted.

Now then can break all that up into nice little subscription packages for their core users, license content packages to other platforms (Luna, Netflix, whatever is in China), and start making "augmented" new content based on their absolutely gigantic back catalogue.

Mission(s) accomplished.
 
I hope that Microsoft gives Ninja Theory another chance. Hellblade 2 was a waste of time, but this studio is competent, they just need to focus in create a proper game.
Competent? It's hard for me to call a studio competent that takes over 6 years to make a 2.5 hour game.
 
This is a bugger issue than simply xbox or MS. This is going to occur at every software company. As AI gets better there's going to be a blood bath. These cuts are already starting.

But its going to get a lot worse. Some experts are saying that one worker trained to use AI will be able to replace up to 10 workers within as little as a year or two.

Id say get used to hearing news like this quite often. In every industry
sci-fi signs GIF
 
If you are talking about 'AI expert', that opinion is moot... don't believe everything you see on internet... Everyone that is talking about AI replacing jobs is selling their AI solution.
Thats incredibly naive. As someone who's used it at work even the small amount t we used it on rewriting policies saved weeks of work. And we are a tiny company. Imagine at scale what these things are gonna do.
 
I was literally in meetings with MS, Anthropic and OpenAI last week where they were pitching staff reductions as benefit of their AI services.

Look at current hiring drop off for college grads in white color positions and for lower end of experience curve in general. It's a shit show and we are only starting.
 
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Don't bet on it. I manage a group of software developers and from what we've seen, the AI tools do not have nearly as big of an impact on efficiency as the AI industry would like you to believe. They certainly save enough time to justify the subscription cost, but they're not replacing huge numbers of people. I also don't buy the "they will soon" argument given what we've seen so far over the last few years.
A quick search shows that many companies are already replacing employees. You can't manage a company and be the last to adopt. Its absolutely gonna be a huge influence on hiring and already is in fact. From the search...
AI technology:
Klarna: Replaced roles with an AI assistant that handles the workload equivalent to 700 full-time employees.

UPS: Announced layoffs and indicated the use of new technologies, including machine learning, to automate tasks, suggesting a role for automation in reducing the need for certain positions.

Duolingo: Terminated contracts for 10% of its contractor workforce, citing a pivot to AI for content translation, signifying a shift towards AI-driven content creation.
Intuit: Laid off employees and stated the savings would be reinvested in AI technology to automate tasks like customer support and data analysis.

Cisco: Announced layoffs as part of a strategic pivot toward AI and cybersecurity, with AI tools handling tasks like network monitoring and troubleshooting.

IBM: Laid off employees, with some HR workers replaced by AI agents for repetitive tasks.

This is just the 1st stuff that came up but I heard of many more. Its just the tip of the iceberg.
 
The fact that some users here are ignoring the post-pandemic tech job boom and thinking that AI pure and simple is stealing jobs and there is nothing related to companies adjusting/cutting positions because of bad management and or market conditions is laughable. Let's wait 2 years and see how many jobs will be recreated because AI is useless without GOOD people.
 
The fact that some users here are ignoring the post-pandemic tech job boom and thinking that AI pure and simple is stealing jobs and there is nothing related to companies adjusting/cutting positions because of bad management and or market conditions is laughable. Let's wait 2 years and see how many jobs will be recreated because AI is useless without GOOD people.

The biggest threat to jobs is an AI indian
 
I dont know why people are bringing up the acquisition. All that Call of Duty revenue is absolutely helping them transition out of 1st party to 3rd party until they get all their games day 1 on other systems. Its probably helped them a ton. Imagine if their system sales fell off a cliff without that revenue.
Because that's what they want to believe.
 
The only studio that I know must be safe is Obsidian. Avowed was pretty good and Grounded 2 has hype. The studio is already pretty small, so no big savings by laying off an efficiently ran(also woke) developer. Obsidian earned their keep. Everybody else, hold on to your butts.
 
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