Xbox Layoffs Partially Blamed on Activision Blizzard Acquisition


Former Microsoft employees have suggested that the company’s purchase of Activision Blizzard is partially to blame for ongoing Xbox layoffs. While some employees have been speaking on condition of anonymity, former Microsoft gaming PR executive Brad Hilderbrand has openly voiced his concerns about Game Pass, and the consequences of Activision Blizzard’s purchase.

How Activision Blizzard’s purchase may have culminated in Xbox layoffs

Echoing what many have been saying about Game Pass, Hilderbrand said that every game that launches on the service ends up “badly missing” its sales goals. In a lengthy note on LinkedIn, he said that subscription revenue isn’t enough to offset the costs of making games, and with subscription spending stalled, this is a recipe for disaster.

To add to its woes, Xbox pushed to purchase Activision Blizzard for an eye-popping $68.7 billion. Prior to this, the Xbox division wasn’t a concern in Microsoft’s books, and largely flew under the radar. However, having spent nearly $70 billion, Hilderbrand claims “the Eye of Sauron has turned” and Microsoft’s leadership is now more involved in Xbox than ever before, and expects the division to cut costs and earn some of that money back. Unfortunately, this has resulted in smaller teams taking big hits.

Another long-time former Microsoft employee spoke to IGN, and echoed what Hilderbrand said. “You have, effectively, three huge companies at play and Microsoft never really finished integration with Bethesda,” they said. “Activision is like three times the size Xbox was.”

Reports claim that more Xbox layoffs are expected soon.

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