The video game industry has never been as precarious as in this year 2024. Between January and July, more than 11,500 employees lost their jobs following too many waves of layoffs. PlayStation, Riot Games and Electronic Arts among many others: no company in the sector has been spared in recent times. However, one of the industry leaders is suffering even more from this terrible phenomenon. Microsoft has just announced a second restructuring that is about to hit hundreds of employees. After shedding 1,900 workers in January, the Redmond firm is back at it with the layoff of 650 additional people.
The news was first shared internally by Xbox CEO Phil Spencer, before being spotted by our colleagues at The Verge. Once again, the historic acquisition of Activision Blizzard that occurred last year is being highlighted by the company:
“Over the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to perform at their best. As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 positions across Microsoft Gaming – primarily in corporate and support functions – to organize our business for future success. long term.”
What impact on future Xbox projects?
Last January, the huge wave of layoffs led to the closure of the Arkane Austin studio, the origin of the famous and very controversial Redfall. Gamers were worried that the acquisition of Activision Blizzard – although presented as a new major step for the future of Xbox and Microsoft – would end up doing more harm than good. Aside from the inclusion of Call of Duty and other licenses in the Game Pass, it is certain that the positive impacts of this merger can still be counted on the fingers of one hand. Phil Spencer is nevertheless trying to reassure his remaining employees, as well as the general public.
“No games, devices or experiences are being canceled and no studios are being closed as part of these new adjustments“ he explains in the internal press release shared by The Verge. Now, Xbox and Microsoft will have to pull out all the stops to regain the trust of players. Despite some satisfactory announcements this summer, the manufacturer's program still seems very weak. PlayStation has not even hesitated to justify the exorbitant price of its new PS5 Pro by “the lack of competition” that the machine faces.
Will the Redmond firm be able to respond with a new Xbox model and sufficiently catchy titles? The next few months will be decisive and promise to be a pivotal period for this generation of consoles. Especially since the announcement of Nintendo's new console could also upset the balance between the three major manufacturers. The video game news therefore promises to be busier than ever.
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