http://seattletimes.nwsource.com/html/businesstechnology/2002010439_microsoftlayoffs20.html
In the latest adjustment to its Xbox business, Microsoft is closing its sports video-game studio in Redmond and laying off 76 employees.
The cut is the division's largest single layoff since Microsoft launched Xbox in 2001, but it has shed hundreds of games jobs over the past year.
A Microsoft spokeswoman said the company no longer has to make as many Xbox games itself, now that the console has support from the games industry.
"The business has grown and a vibrant ecosystem of third-party developers has emerged," said spokeswoman Molly O'Donnell. "These developers are filling the pipeline with an abundance of great games."
Microsoft's game-development group, which started out making games for PCs, grew from 350 employees to a peak of 1,200 after the Xbox was launched.
Changes were under way earlier this year and the group was down to 1,000, division chief Robbie Bach said in May.
"When we got to that point, we started looking around and started realizing, wait, we've got tons of third-party support," he said. "We shouldn't be the bulk game provider."
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Microsoft is also refining its Xbox business to make it profitable. Last month, executives told financial analysts that its entertainment business is on track to be profitable by the 2007 fiscal year.
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A separate studio in Utah that produces the "Links" golf game and "Amped" snowboard game is unaffected by the cuts, she said.