As a long-time follower of the gaming industry, it feels like we’re witnessing a game of musical chairs with seats getting fewer and fewer. The constant job cuts and studio closures are disheartening, to say the least. However, as a consumer, I can’t help but wonder if this is Microsoft’s way of perfecting their game portfolio – trimming the fat before the final showdown!
2024 has been a challenging year for Microsoft’s gaming sector, mirroring trends across the wider industry. However, it appears that more changes are on the horizon. According to Game File, Microsoft is planning to reduce its workforce in the gaming division by another 650 positions. This decision was confirmed by Phil Spencer, CEO of Microsoft Gaming, in an email sent out to company employees today.
In his email, Spencer clarified that most of the job reductions would primarily affect “administrative and support staff” and not lead to any studio shutdowns, game cancellations, or halts in device or feature development. This wave of layoffs is connected to Microsoft readjusting its structure after acquiring Activision Blizzard.
Over the last year, our focus has been on reducing interruptions as we bring in new teams and help them perform at their best. To streamline our company structure following our acquisition and improve overall performance, we’ve decided to reduce around 650 positions within Microsoft Gaming – primarily corporate and support roles – so that we can better position our business for long-term success.
“By making these adjustments, our corporate and auxiliary teams and assets are now synchronized for long-term growth, allowing them to more effectively aid our studio teams and business sectors with expanding programs and resources. Simultaneously, it’s important to note that while we rearrange priorities and manage the evolution and performance of games, some teams may face changes. However, no games, devices, or experiences are being discontinued, and no studios are closing as a result of these alterations at this time.
According to Game File reports, not mentioned in Spencer’s email, the latest job reductions have impacted the teams responsible for creating the mobile versions of “Warcraft Rumble” and “Call of Duty: Warzone Mobile”. However, it is said that both games will remain active and continue to receive updates.
This year, in January, I learned that Microsoft was trimming 1,900 jobs from their entire gaming division, impacting Microsoft Gaming, Activision Blizzard, and ZeniMax Media. Their aim was to streamline their strategy and execute plans with a cost-effective structure. In May, they shuttered four studios under ZeniMax, including the developers of Redfall and Prey (Arkane Austin) and The Evil Within and Hi-Fi Rush (Tango Gameworks). However, it seems that Tango Gameworks was later acquired and revived by Krafton.
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2024-09-13 01:41