Around 650 people are reportedly being laid off from Microsoft’s gaming team, according to an email allegedly sent to staff by Xbox head Phil Spencer.
As reported by Game File, Spencer calls today “one of the challenging days” in his email, in which he says that the decision to cut staff was made as part of the company “aligning our post-acquisition team structure and managing our business,” and to “organize our business for long term success.”
The email reportedly states that the roles affected are “mostly corporate and supporting functions,” and Game File adds that, according to a source familiar with the situation, this will mostly affect Activision Blizzard staff. In addition, it’s reported that no business unit leaders at Xbox or any of its affiliated gaming-related teams will be affected.
Spencer allegedly goes on to say that no game studios are being closed as part of these latest layoffs, and no “games, devices or experiences are being canceled,” even if “there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games.”
It’s already been a challenging year for Microsoft Gaming employees. Back in January, it was announced that around 1,900 people from across the Activision Blizzard, Zenimax, and Xbox teams were being laid off. Later, it was announced that studios Arkane Austin and Tango Gameworks were being closed, too (although the latter was later revived by Krafton).
In today’s email, Spencer reportedly says the company is “deeply grateful for the contributions of our colleagues,” noting that affected staff will be supported with “exit packages” that include “severance, extended healthcare, and outplacement services” in the US, and adds: “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.”
I get it’s a business and they need to do business things. And I’m not sure if it’s the new Microsoft head or Phil’s been around long enough to see himself become the villain, but man is Xbox making some questionable decisions.
I’ve basically been Team Xbox since the OG in 2001, but lately I’m feeling very disaffected as part of the ecosystem. Sony isn’t really any better, but I don’t have the same drive to confidently support Xbox anymore and now I just feel beholden to my digital library.
It kinda feels like the console makers have basically enshittified on a much slower timeline than most technologies, but the corner is being turned now. I think I like my Steam Deck more than anything else these days.
I went from hunting down a series x during the pandemic using stock tracker apps, to being confident I’m not gonna be buying another console outside of maybe the Switch 2.
At this point Microsoft has let me down way too much, and I was never big on Sony. I have a gaming PC now and with both companies putting their exclusives there, I figure the Switch is all I really need console wise now
Nintendo has kinda been shitty lately with their insane litigiousness too, but they’re the only ones giving a really good reason to buy their console. The Switch 2 so far is sounding like “faster Switch with minor QoL improvements” so it’s hard to get excited about that too.
Oh yeah I’m not in any rush to buy the switch 2 either. After all the joycon drift stuff and the midcyle refresh with a faster, more efficient chip that was a gamble if you got it or the old chip, I’m gonna be more patient this time
I couldn’t have put it better myself. This is exactly how I feel. It’s sad to see happening. Hopefully they turn it around in a big way.
It feels like the division between the creative side and corporate side at all of the console makers continues to widen every year. The executive leadership at Xbox makes it very hard to be a vocal supporter of the creative storytellers and developers that we love so much.
The good news here is that Valve is privately owned. Investors are typically what drives enshittification. Granted, pure selfish profit motive can do similar, but fortunately Steam is massively profitable and sustainable as-is, whereas enshittification is based on suffering unsustainable losses up front to capture users.
The bigger issue is the effective monopoly they have, and that’s currently something that’s starting to rumble a little.
Typical Thursday at Microsoft.
Seems like it’s administrative and support roles — the exact kind of redundancies eliminated in mergers and acquisitions.
This is probably still fallout from the hiring spree of 4 years ago that most tech companies went through. There was rapid expansion that was realistically unsustainable. I would honestly be surprised if this was the last round of layoffs in the gaming industry, let alone the tech industry as a whole.
Lol tech companies are going to be spewing bullshit about how they hired too much in 2022 for the next 50 years to try to excuse their labor exploitation.
What’s next? Taking away employee perks like gamepass to save a few bucks?
