Xbox is the sole competitor to Sony’s PlayStation in the AAA gaming space. Microsoft’s gaming subbrand has been in the race to rival PlayStation ever since the sixth generation of consoles in 2005 saw the reveal of the original Xbox in 2002.
The gaming industry has been going through a turbulent time in the last 1-2 years, where layoffs have become increasingly common. Various studios like Ascendant Studios, Ubisoft, Blizzard, Epic Games, Naughty Dog, and Telltale Games have announced layoffs. Xbox Game Studios seems to be joining the list of these studios, and the impact will also see an upcoming game scrapped.
Trouble for Xbox continues as 8 percent of the staff is offloaded
Gaming layoffs aren’t stopping after the previous year being especially troublesome for industry professionals. Microsoft’s gaming sub-brand is reported to reduce the workforce by quite a lot, as reported by IGN.
A memo from the Xbox boss, Phil Spencer, was floated to all staff members. Spencer assured the studio would support the individuals affected by the company’s maneuver. The memo from the chief regarding the acquisition came after the company acquired Activision Blizzard last year in a deal amounting to 69 billion USD.
The memo from the studio chief reads:
As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business…As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team.
It is most certainly bad news for all of the individuals who were affected by this. The memo also states that the entire studio leadership will try everything to ensure the process is executed thoughtfully and smoothly. While the memo also acknowledges the work put in by all of the members and how it contributed to the success of Activision Blizzard, Zenimax, and Xbox, it doesn’t change that things couldn’t be worse for the affected individuals.
Talking of the support that the studio will provide to the ones affected by this decision, the memo stated that:
We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.
Following this announcement was more than earth-shattering to anyone whose career will be in limbo after this. Blizzard Entertainment President Mike Ybarra also announced his departure. He stated that:
To the Blizzard community: I also want to let you all know today is my last day at Blizzard. Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor.
Ybarra also stated that he would support all of the professionals affected by the decision and try to help them with connections and recommendations from the industry. Ybarra is not the only executive departing from the company, and unfortunately, Allen Adham, a co-founder and chief design officer, is ending his stint with the studio.
Also, an upcoming game from the studio dubbed Odyssey is now scrapped. The industry’s current state is more than deplorable for anyone affected by the layoffs. At the end of 2022, Ybarra also stated that the team behind Odyssey was to be bolstered with it increasing to twice its size. It is now uncertain, what will happen to all of the individuals who were involved with the project.
What do you think of the current state of the industry? Do you think 2023, a phenomenal game year, was equally bad for the professionals? Let us know your thoughts in the comments below.
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