News Microsoft lays off 1,900 Activision Blizzard and Xbox employees amid industry-wide cuts

[Admin]

Mere months after acquiring Activision Blizzard in October 2023, Microsoft is laying off 1,900 employees

Microsoft lays off 1,900 Activision Blizzard and Xbox employees amid industry-wide cuts : Read more

 

[USAFRet]

As I've heard from one than one source, this is industry wide, and mostly a correction after over-hiring during the pandemic.

 

[atomicWAR]

Not surprised, as USAFRet pointed out this has been industry wide. We've seen studios shuttered, more games than usual canceled late in development, studio buyouts followed by layoffs, etc. Plus what I've heard muttering from friends in the industry that also supports this conclusion as well with some of those gearing up back burner plans/projects just in case their job/studio is next.

The pandemic created a lot of demand in the gaming sector with everyone staying home yet still wanting to have a bit of fun and/or socialization. Studios jumped on it cranking out content faster than ever. But part of the problem beyond growing budgets and subsription models taking off(ish) is that over abundance of content. Heck my back catalog of games I have started and am wholly intent on completing yet haven't had time to do so...is embrassingly large. And don't get me going on the ones I started, ended up not liking but passed the two hour return window in play time because they started OK but never fully engaged me and I got bored.

With the number of 'good' and 'bad' games that launch increasing exponentially every year, it is basically impossible these days to play all the games you might be interested in. End of day the industry is eating itself from over production, skyrocketing budgets (inflation isn't helping) and subscription models taking off. Something had to give... Hopefully when the dust settles gaming as a whole will be better for it though I suspect things will get worse in the industry before they get better.

 

[stonecarver]

Welp when I first learned Microsoft was buying up the gaming studios I got a pit in my stomach. And here we are.

Buy, hold , cut the fat, and distroy.

Make sure you have a legit reason to say why you cut the fat and that's how corperate world works. Just another day in the neighborhood. 😕

 

[JTWrenn]

10% workforce reduction after a purchase is very common. There are always overlaps in the workforce and projects that get shut down. The way they are doing it actually sounds pretty good compared to how other companies have done it...at least the lip service sounds more real. Never a fun thing, but very common.

 

[Eximo]

They should all band together and create PassiveVision / SummerBreeze

 

[Sleepy_Hollowed]

As I've heard from one than one source, this is industry wide, and mostly a correction after over-hiring during the pandemic.

Not even a bit.

This is short term stock pumping or the effects of conglomeration.

Their merger should’ve not been permitted if this was the outcome, and more to come.

When a company has to have infinite stock rise for the investors to be happy, it’s not doing well.

 

[Amdlova]

With the latest fiascos from blizzard 10% it's nothing...

 

[ThomasKinsley]

Unfortunately, many of these game studios seem to adhere to an unsustainable model of perpetual growth. This model drives unsavory in-game monetization schemes and pushes cyclical mass layoffs in the gaming industry.

My gaming days are over, but I remember about 20 years ago Ubisoft had a game with ostentatious in-game posters advertising various products, and one of their staff members openly bragged about it saying the concept was "free money" with the more ads the better. It sounds like the industry hasn't changed one bit. I'm glad I'm over it.

 

[epobirs]

The layoffs at Activision and other parts of that acquisition were to be expected, as those positions are redundant as the company restructures as a part of a larger entity rather than a company unto itself. This will be more felt among the business infrastructure personnel like accountants than the actual developers.

 

[bit_user]

End of day the industry is eating itself from over production, skyrocketing budgets (inflation isn't helping) and subscription models taking off. Something had to give...

I feel like this isn't just video games, but all sorts of content. There are so many shows getting produced and I wonder who has time to watch any of them.

 

[atomicWAR]

I feel like this isn't just video games, but all sorts of content. There are so many shows getting produced and I wonder who has time to watch any of them.

Yeah I agree 100%. Media content production (TV, movies, games, news and even books...)as a whole has gotten out of hand. While we may appreciate the extra content during pandemics or right after the Hollywood strikes when a lack of new content is upon us, even if it is just temporary. But people just can't keep up in the way they use to and at some point cuts have to be made. I suspect we have a lot more to come in time.

 

[bit_user]

Yeah I agree 100%. Media content production (TV, movies, games, news and even books...)as a whole has gotten out of hand. While we may appreciate the extra content during pandemics or right after the Hollywood strikes when a lack of new content is upon us, even if it is just temporary. But people just can't keep up in the way they use to and at some point cuts have to be made. I suspect we have a lot more to come in time.

Sad to say: I didn't even notice effects of the screen writers' & actors strikes, because my queue was already so full.