Microsoft is preparing a second major round of layoffs at Xbox this week, following a 1,600-person cut in July. This restructuring signals a continued consolidation of the gaming division's operations and workforce. The move directly impacts the stability of several high-profile development studios and the future of major game franchises.
Microsoft cuts hundreds of jobs as it consolidates game studios
The layoffs are expected to affect hundreds of employees and involve consolidating game studios under the Xbox umbrella. Insiders report that Blizzard Entertainment and Halo Studios are specifically targeted in this upcoming reduction. These studios represent significant portions of Microsoft's publishing portfolio and development capacity.
Blizzard was spared in the July cuts but is now facing imminent layoffs despite recent strong performance. Halo Studios may see development duties for future titles shifted to Activision or Sledgehammer Games. This transfer of responsibilities suggests a strategic realignment of internal resources across Microsoft's gaming arms.
The July restructuring saw 3,200 total reductions and the departure of Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. The current wave marks the second major staff reduction of the year for Xbox. These changes reflect a broader effort to streamline the company's game development structure.
Discussion
0 comments
Log in to join the thread with a thoughtful take, question, or correction.