Based on an internal memo from Xbox chief Phil Spencer, Microsoft has seemingly laying off 650 staff from across Xbox. Those affected are mostly in the corporate and support functions.
The news comes by way of IGN who state they have acquired an internal memo sent by Phil Spencer himself. If true, it will mean Microsoft has cut a total of 2,550 jobs across its gaming workforce this year. Those cuts resulted in the closure of several studios, including that of Tango Gameworks, although that studios has thankfully found a new lease on life through Krafton.
There is at least a tiny sliver of good news; according to the memo, no studios have been closed nor any games canceled. Phil says the jobs have been cut to “organize our business for long term success.”
“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.” said the internal memo.
Interestingly, Phil Spencer refers to “Microsoft Gaming” rather than Xbox. While I could be reading too much into this, the wording suggests what we’ve all been thinking: Xbox is no longer allowed to do its own thing under the stewardship of Phil now that Activision-Blizzard are part of Microsoft. Since the Activision-Blizzard deal was completed, it has begun increasingly clear that Microsoft wants to be directly involved in everything happening at Xbox.
As always, it’s difficult to determine exactly what has driven the need for these cuts. It could be as simple as decreasing costs to generate even more money, or it could be another sign that Microsoft is shifting away from the console manufacturing business and into the role of the world’s biggest publisher of games. It could also be the advancement of various AI technologies making more and more roles redundant. It could be all of these things or none of these things.
What do know for a fact is that it sucks. 650 people now have to go through the stress and worry of losing their jobs, and I wish them all the best in finding new positions where they can hopefully thrive and prosper.