Major Changes at Microsoft Gaming Division

In a significant shakeup within Microsoft’s gaming division, the company announced this week the laying off of approximately 1,900 employees from its gaming teams. This development comes only a few months following the successful acquisition of gaming giant Activision Blizzard, a move aimed at bolstering Microsoft’s Xbox and PC lineup.

Microsoft Gaming CEO Phil Spencer Addresses Layoffs

In an internal memo obtained by IGN, Microsoft Gaming CEO Phil Spencer addressed the layoffs, calling them a “painful decision.” Spencer emphasized the importance of supporting those impacted during their transition. “The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax, and the Xbox teams,” Spencer said in the memo.

Mike Ybarra Announces Departure from Blizzard

Adding to the upheaval, Blizzard Entertainment president Mike Ybarra also announced his departure from the company. Ybarra, who previously served as Xbox’s corporate vice president before leading Blizzard, expressed his gratitude for the opportunity and announced his intention to become “Blizzard’s biggest fan from the outside.”

Layoffs Across the Gaming Industry

This news is part of a broader trend of layoffs within the gaming industry. Just this January, Riot Games announced layoffs, following other companies like Wizards of the Coast who had similar announcements in December.

Microsoft’s Future Plans

Despite these changes, Spencer’s memo highlighted Microsoft’s commitment to growth and strategy alignment. “We’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world,” he stated.

Sources; Twitter (X), IGN, CBR


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