Yesterday, Microsoft confirmed the dismissal of 5% of its workforce. That is, approximately 11,000 employees will lose their jobs. Although those from Redmond did not detail the affected areas, as the hours go by, more information is being learned about it. According to Jason Schreier, a journalist for Bloomberg and one of the most trusted sources in the video game industry, the company’s move also impacted the Xbox division.
Specifically, the main studies affected were 343 IndustriesResponsable of Halo; Y Besthesda Game Studioswho is currently working on the widely anticipated Starfield. Of course, the news has been quite surprising, especially because of the responsibility that both teams have today.
On the one hand, 343 Industries is trying to turn the tide Halo Infinite. While its campaign was received positively, the multiplayer has simply failed to meet its ultimate goal. That is, to become a benchmark for games as a service. According to Schreier, a large part of the 343 employees who were fired belong to the team responsible for the campaign, which does not make sense because it was the only section that managed to stand out.
The report of Bloomberg indicates that the dismissals did not distinguish the hierarchy or seniority of the affected workers. some were veterans that they had more than 10 years working on Xbox, which is not a minor issue.
“We have made the difficult decision to restructure elements of our team, which means some roles are being eliminated,” 343 Industries CEO Pierre Hintze said in an email to employees.
One of the most important figures that will leave 343, but not Microsoft, is Joe Staten. She returned to the studio to take charge of the campaign, which had shown disappointing graphics on its first run. Staten took responsibility for the creative direction and, despite everything, managed to get his project off the ground. He has now parted ways with the franchise, though he will be relocated to Xbox’s publishing division.
In the case of Bethesda Game Studios, it’s certainly strange that they cut a percentage of the staff. Starfield is set to be the biggest Xbox launch since Halo Infinite, which was released in December 2021. It has been delayed multiple times and, in fact, will not have a presence at the next event on the platform. Of course, it will soon have its own dedicated presentation, as reported by Microsoft to calm the waters.
Layoffs amid unprecedented Microsoft buyout
Obviously, the layoffs at the aforementioned Xbox studios contrast with Microsoft’s biggest economic movement in recent years. Redmond’s, from the year before, They are trying to close the purchase of Activision for $69,000 million dollars. If regulators give the green light, it will become the largest acquisition in video game history.
Of course, Microsoft first has to deal with the doubts of organizations such as the FTC, the European Commission and the CMA of the United Kingdom. In all three cases, there is concern that the Activision purchase could affect competition within the sector. Mainly, because it carries a widely popular franchise like call of duty.
However, Microsoft has gotten tired of saying that it does not intend to limit the availability of call of duty on your platform. He has promised to bring the franchise to the Nintendo Switch and, if Sony agrees, to guarantee its release on PlayStation consoles for the next 10 years.
Still, it wasn’t enough to convince regulators. The FTC has already sued Microsoft to try to block the purchase, while the European Commission is about to issue an antitrust warning against the company led by Saya Nadella.
