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[Daniel_Mallorca1985]

Microsoft to cut 650 more gaming jobs

It's the second big round of cuts at the Xbox-maker this year following its purchase of Activision Blizzard

www.gamefile.news

Microsoft will lay off approximately 650 people from its gaming team, the company's head of gaming, Phil Spencer, told employees in an email to team members this morning.

Spencer framed them in the context of Microsoft's October 2023 $69 billion purchase of Activision Blizzard.

"As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long term success," Spencer wrote.

The majority of the cuts will impact people in those corporate and support roles at Activision Blizzard, according to a source familiar with the matter.

This time around, "no games, devices or experiences" will be cut, per Spencer's note.

None of the business unit leaders at Xbox or its affiliated gaming teams will be cut either, according the a source familiar.

 

[digoutyoursoul]

Why don’t you resign Phil?

 

[Tomi]

Wtf???
Microsoft stop destroying people lives

 

[dragonyeuw]

Jesus H Christ. This year has been fucking BRUTAL.

 

[mansoor1980]

if they work on a mid-gen refresh console they can hire more new people , problem solved

 

[Thick Thighs Save Lives]

The full text of Phil's email:

Subject: Changes to Microsoft Gaming

For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work. As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long term success.

I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted. In the US, we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US packages will differ according to location.

With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs. Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games. No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.

Throughout our team’s history, we have had great moments, and we have had challenging ones. 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.

Phil

 

[Tiago Rodrigues]

Looking back at all the cheerleading for these acquisitions is not aging too good now is it?

So much for making the industry better.

 

[StueyDuck]

I mean if ms needed to drop bad news, now would be the ideal time.

 

[Tiago Rodrigues]

I mean if ms needed to drop bad news, now would be the ideal time.

Because they are sharing lots of good news lately?

 

[OverHeat]

Just close 343i Phil

 

[Zones]

Looking back at all the cheerleading for these acquisitions is not aging too good now is it?

So much for making the industry better.

Ironically, it didn't even make Xbox better, in fact, one could argue that it ended Xbox as a major competitive platform holder.

 

[StueyDuck]

Because they are sharing lots of good news lately?

Because the competition isn't looking so hot currently either.

Concord + pro price softens the blow for MS.

Instead of 100% attention they might see less because people are still mad somewhere else

 

[TheDarkPhantom]

Phil Spencer will go down as the *worst* exec in console gaming history, Jim Ryan looks like a Feynman level genius in comparison.

 

[ThisIsMyDog]

Looking back at all the cheerleading for these acquisitions is not aging too good now is it?

So much for making the industry better.

i just wanted call of duty in my gamepass, don't blame me

 

[daclynk]

 

[Mephisto40]

Making the industry better one job loss at a time

 

[BlackTron]

Why don’t you resign Phil?

He's probably exactly who MS wants.

 

[Lucifers Beard]

Phil certainly is killing it this year isn't he? I think his time is up as the leader of Xbox/Microsoft Gaming or whatever the fuck you want to call it.

 

[cormack12]

Brutal industry albeit devs are hopefully safer

As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long term success.

 

[Kerotan]

Because the competition isn't looking so hot currently either.

Concord + pro price softens the blow for MS.

Instead of 100% attention they might see less because people are still mad somewhere else

The pro price is bad for MS because they're not offering an alternative. Had they Sony might reduce the price and make less money off it. Even at €100 less that's 1BN extra revenue for Sony after selling 10M pros. For a company like Sony that's important especially if they're looking to fund acquisitions.

 

[Darsxx82]

What scares and saddens is to think that they are replacing the people in charge of Activision/Blizzard marketing (who have always been very good) with those who handle Xbox marketing (who are terrible at their job and in some cases even harming the image of the brand and its products)

As always, mediocre people with connections always win over good professionals without connections.

 

[FalsettoVibe]

Acquisitions suck in literally every industry. And they all say the same crap during the acquisition....
-Your job is safe.
-No changes
-Business as usual.

Then boom.... walking papers served.

 

[Yoboman]

They really need to accelerate those PS5 ports so they can save some jobs. Things are falling apart over there rapidly

 

[digoutyoursoul]

Phil Spencer will go down as the *worst* exec in console gaming history, Jim Ryan looks like a Feynman level genius in comparison.

And applauded along the way by Xbox media and community

 

[That Damn Kid]

 

[Evil Calvin]

Barely any old Activision/Blizzard games added to Gamepass since acquisition, mass layoffs, couple underwhelming 1st party releases (Redfall, Starfield), only one big 1st party game coming out in last quarter of 2024 (Indy), and no mention of bringing back any acquired properties (Crash?). MS has been a shitshow for sooooo long now. Basically since the launch of the Xbox One.

 

[Jose92]

Phil Spencer will go down as the *worst* exec in console gaming history, Jim Ryan looks like a Feynman level genius in comparison.

Both are shit.

 

[Mr Moose]

What scares and saddens is to think that they are replacing the people in charge of Activision/Blizzard marketing (who have always been very good) with those who handle Xbox marketing (who are terrible at their job and in some cases even harming the image of the brand and its products)

As always, mediocre people with connections always win over good professionals without connections.

Greenberg knowing his job is safe:

 

[lughnasadh123]

MS swooping in to steal back bad press again to give Sony a breather.

 

[midnightAI]

Because the competition isn't looking so hot currently either.

Concord + pro price softens the blow for MS.

Instead of 100% attention they might see less because people are still mad somewhere else

Because of one bad game and a console no one is forcing you to buy? (base PS5 still exists)

Astro Bot more than makes up for Concord

 

[ChuckeRearmed]

oh no
anyway

 

[twilo99]

Rookie numbers.

My estimate is that they need to get rid of at least another ~3000-4000

 

[Bernoulli]

Spencer wanted more than 699 but couldn't beat sony

 

[Dr. Samuel Hayden]

Please let them all be from 343

 

[Mownoc]

That's over 2500 Xbox Jobs cut this year. Bet all those Activision employees that got the cut are loving that acquisition. Made a lot of their jobs redundant. Ordinary people paying for the $70 Billion deal.

 

[demigod]

Wow, didn't know Ninja Theory had that many employees.

 

[Tiago Rodrigues]

Because the competition isn't looking so hot currently either.

Concord + pro price softens the blow for MS.

Instead of 100% attention they might see less because people are still mad somewhere else

The competition just released the highest rated game of the year last week.

If you mean PS5 Pro, it doesn't affect Sony negatively in any way. If people wanted a PS5, they can still buy it. The slim is out there as we speak and will always be the main unit.

If the Pro is too expensive for some...just don't buy it. Go for the slim model. If either options are bad to you, wait for some PC releases. Sony will end up making money anyway.

 

[DragonNCM]

They payed 70 billion $ so they can have fun destroying game studios.....who will make games in the future for their Gaming division?

 

[BennyBlanco]

Phil certainly is killing it this year isn't he? I think his time is up as the leader of Xbox/Microsoft Gaming or whatever the fuck you want to call it.

Yup and they’re gonna let him take all the heat on his way out the door. Guy made millions and millions to run Xbox into the dirt.

 

[CherryFalls]

This guy must have epstein level incriminating evidence on somebody high up to still be around

 

[Lucifers Beard]

They payed 70 billion $ so they can have fun destroying game studios.....who will make games in the future for their Gaming division?

At this point I think he's just making a salary and doesn't give a fuck about anything else.

 

[Darsxx82]

Greenberg knowing his job is safe:

And his "most talented folks"

 

[RagnarokIV]

Prioritize those who have pronouns on their bios.

 

[RoboFu]

Well when you make crappy games then you've got to go.

 

[Angry_Megalodon]

 

[Cyberpunkd]

Looking back at all the cheerleading for these acquisitions is not aging too good now is it?

So much for making the industry better.

Yup

Spencer framed them in the context of Microsoft's October 2023 $69 billion purchase of Activision Blizzard.

I have an idea - fire Spencer, hire Kotick in his place. Then Xbox actually stands a chance.

 

[Team Andromeda]

They payed 70 billion $ so they can have fun destroying game studios.....who will make games in the future for their Gaming division?

That is just silly talk. When you buy such big studios there are going to be overlaps in dept like HR and PR that is just the simple reality of corporate big business and now with the push to AI even more jobs will be lost.
Not that I'm defending the move it's just the way it is.

 

[Hayabusabruh]

"We hear you"

 

[Cakeboxer]

Because the competition isn't looking so hot currently either.

Concord + pro price softens the blow for MS.

Instead of 100% attention they might see less because people are still mad somewhere else

People in forums need to understand one thing: They are not representative.
Most gamers don't read about gaming, they just play their Fortnite or whatever. They will never hear about cutting jobs or aquisitions, never heard of Concord, have 0 interest in a Pro etc,

 

[Rudius]

I think all the DEI practices are starting to fuck the industry really hard.

In times of plenty companies can tank the damage of hiring less competent people, but when things get dire they can't afford incompetence.