Microsoft, the tech giant behind Xbox, Windows, and other popular products, announced on Friday that it will be laying off 1,900 employees from its gaming division, as part of a restructuring plan to focus on cloud gaming and subscription services.
Why is Microsoft cutting jobs in gaming?
The job cuts represent around 9% of the 22,000 employees employed in Microsoft gaming, which includes studios such as 343 Industries, Mojang, Rare, and The Coalition. Microsoft said that the layoffs are necessary to streamline its operations and align its resources with its strategic vision for the future of gaming.
According to Microsoft, the gaming industry is undergoing a major shift, as more and more gamers are moving away from traditional console and PC gaming, and opting for cloud-based and mobile gaming platforms, such as xCloud, Stadia, and Luna. Microsoft said that it wants to invest more in these emerging technologies, and offer its customers more choice and flexibility in how they play their favorite games.
Microsoft also said that it wants to grow its gaming subscription service, Xbox Game Pass, which gives users access to over 100 games for a monthly fee. Microsoft said that Xbox Game Pass has over 18 million subscribers as of January 2024, and that it plans to add more games and features to the service in the coming months.
How will the layoffs affect Microsoft’s gaming portfolio?
Microsoft said that the layoffs will not affect its current and upcoming gaming projects, and that it will continue to support and update its existing games, such as Halo Infinite, Minecraft, Sea of Thieves, and Gears 5. Microsoft also said that it will still release new games from its studios, such as Fable, Perfect Dark, and Everwild.
However, some analysts and industry insiders have expressed concern that the layoffs could hurt Microsoft’s gaming innovation and creativity, and that it could lose some of its talented and experienced developers to its competitors, such as Sony, Nintendo, and Amazon. Some gamers have also voiced their disappointment and frustration with Microsoft’s decision, and have questioned its commitment and loyalty to its gaming fans and community.
What is the future of Microsoft gaming?
Microsoft said that it is confident that its gaming division will emerge stronger and more competitive from the restructuring, and that it will deliver more value and quality to its customers and partners. Microsoft said that it is excited about the future of gaming, and that it will share more details and announcements at the upcoming E3 2024 event in June.
Microsoft also said that it is grateful for the hard work and dedication of its gaming employees, and that it will provide them with severance packages, career transition services, and other support. Microsoft said that it hopes
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