Microsoft's Xbox Division Could Face Further Cuts

Next week Microsoft could lead to a new round of large-scale layoffs scale in the Xbox gaming division. Bloomberg sources have reported that the cuts will affect employees globally, for a planned corporate reorganization. If confirmed, yes will deal with the fourth wave of significant layoffs for the Xbox division over the last 18 months. Microsoft cut 1,900 Xbox employees in January 2024 and another 650 last September. Also in 2024, it closed Arkane Austin and Alpha Dog Games studios, while it merged Roundhouse Studios in ZeniMax Online Studios. For Bloomberg, there is a need to increase margins profit after the American giant, two years ago, finalized the acquisition of Activision, a big name in the gaming sector video game development, for 69 billion dollars. In the first three months of this year, Microsoft recorded a 8% YoY increase in content revenue and Xbox services. In mid-May, the news arrived of the dismissal of approximately 3% of the workforce, across the board several teams, equal to approximately 7,000 people. In the last few hours, Microsoft and Meta have announced Quest 3s Xbox Edition, a limited version of the mixed reality headset, that merges the Xbox gaming platform with entertainment apps and work already present on Meta Quest devices.